A securities investment trust fund publicly offered or privately placed by a securities investment trust enterprise, the private property of the securities investment trust enterprise, and the private property of the fund custodian shall be independently maintained. Creditors may not make any claim or exercise any other rights against the assets of the fund to satisfy liabilities incurred by the securities investment trust enterprise or the fund custodian of the fund with respect to their own private properties.
The fund custodian shall establish and maintain a separate account for each securities investment trust fund in its custody in accordance with this Act, regulations authorized and adopted under this Act, and the securities investment trust contracts.

An institution to which any of the following circumstances applies may not serve as a fund custodian:
1.It has been subject to a disposition by the Competent Authority under Article 115, and the disposition period has not yet expired.
2.It has not yet obtained a credit rating of a certain grade or higher from a credit rating institution approved or recognized by the Competent Authority.
An institution to which any of the following circumstances applies may not serve as a fund custodian of a securities investment trust enterprise, except with the approval of the Competent Authority:
1.Its investment in the securities investment trust enterprise reaches a certain percentage of the total issued shares of the enterprise.
2.It serves as a director or supervisor of the securities investment trust enterprise, or any of its directors or supervisors serves as a director, supervisor or managerial officer of the securities investment trust enterprise.
3.A certain percentage of its total issued shares is held by the securities investment trust enterprise.
4.The securities investment trust enterprise or its representative serves as a director or supervisor of the institution.
5.It serves as a certifying institution of the securities investment trust fund.
6.The institution and the securities investment trust enterprise are subsidiaries of the same financial holding company or are affiliated enterprises.
7.Other institutions that the Competent Authority specifies as inappropriate to serve as a fund custodian.
Where a director or supervisor is a juristic person, the provisions of subparagraph 2 shall apply mutatis mutandis to its representative or person appointed to exercise its duties on its behalf.
The "certain percentage" in subparagraphs 1 and 3 of paragraph 2 shall be prescribed by the Competent Authority.
The term "subsidiary" in subparagraph 6 of paragraph 2 means a subsidiary as defined in Article 4 of the Financial Holding Company Act.

If a fund custodian learns that a securities investment trust enterprise has violated a securities investment trust contract or an applicable act or regulation, it shall immediately request the securities investment trust enterprise to perform its obligations under the contract or the applicable act or regulations; if there is a likelihood of injury to the rights or interests of beneficiaries, it shall immediately report to the Competent Authority, with a copy to the Securities Investment Trust and Consulting Association.
If a securities investment trust enterprise intentionally or negligently injures assets of the fund, the fund custodian shall seek recovery from the enterprise on behalf of the rights and interests of the fund beneficiaries.

If the fund custodian intentionally or negligently violates this Act, a regulation authorized and adopted under this Act, or a securities investment trust contract, causing injury to assets of the fund, it shall be liable for damages. The securities investment trust enterprise shall furthermore seek recovery from the institution on behalf of the rights and interests of the fund beneficiaries.
A fund custodian institution shall be responsible for any intentional or negligent [act or omission] of its agents, representatives, or employees when performing their obligations under a securities investment trust contract to the same extent that the fund custodian institution is responsible for its own intentional or negligent [acts or omissions].