Under any of the following circumstances, an entity may not be a custodian of a futures trust fund:
1.The entity has violated these Regulations or the self-regulatory rules of the Futures Association and the period has not yet expired in which the competent authority has prohibited futures trust enterprises from authorizing it to act as a fund custodian.
2.A trust company does not have a credit rating credit rating at or above a specified level issued by a credit rating agency approved or recognized by the competent authority.
3.A bank that concurrently operates trust business does not meet the conditions prescribed by the competent authority.
Under any of the following circumstances, neither a trust company nor a bank that concurrently operates trust business may serve as the fund custodian of a futures trust enterprise:
1.The trust company or bank has an investment in the given futures trust enterprise equal to ten percent or more of the futures trust enterprise's total issued shares.
2.The trust company or bank is a director or supervisor of the given futures trust enterprise, or a director or supervisor of the trust company or bank serves as a director, supervisor, or managerial officer of the futures trust enterprise.
3.The given futures trust enterprise holds ten percent or more of the total issued shares of the trust company or bank.
4.The given futures trust enterprise or its representative serves as the director or supervisor of the trust company or bank.
5.The trust company or bank is a subsidiary under the same financial holding company as the given futures trust enterprise, or they are affiliated enterprises.
6.Other circumstances prescribed by the competent authority for the protection of the public interest under which serving as fund custodian would be inappropriate.
The provisions of subparagraph 2 of the preceding paragraph apply mutatis mutandis to a representative or designated representative of a juristic person director or supervisor that performs duties on its behalf.
The meaning of "subsidiary" in paragraph 2, subparagraph 5 is as defined in Article 4 of the Financial Holding Company Act.
A futures trust enterprise shall adopt standards to govern its selection of fund custodians and shall implement those standards.

When a trust enterprise that concurrently operates a futures trust fund enterprise offers a futures trust fund to unspecified persons and receives permission from the competent authority to keep custody of futures trust fund assets, the obligations of the fund custodian shall be executed by the trust enterprise and placed under the supervision of the trust supervisor.

A futures trust fund offered by a futures trust enterprise shall be segregated from the proprietary assets of the futures trust enterprise and those of the fund custodian.
No creditor in respect of a debt against proprietary assets of the futures trust enterprise or the fund custodian may file for attachment or make any other claim against the assets of the futures trust fund.
In accordance with regulations authorized and adopted pursuant to the Futures Trading Act and with the stipulations of futures trust deeds, the fund custodian shall establish a segregated account for each futures trust fund in its custody.

The fund custodian, in accordance with laws and regulations and the provisions of futures trust deeds, shall act with all due diligence and fiduciary responsibility and in the principle of good faith in keeping custody of futures trust fund assets.
The directors, supervisors, managerial officers, associated persons, and other employees of the fund custodian may not engage in futures trades or invest in futures-related spot instruments using information they have gained in the course of their duties nor divulge such information to other parties.

A futures trust fund custodian shall utilize the futures trust fund assets in accordance with the directions of the futures trust enterprise, and shall exercise the rights associated with those assets.
The fund custodian may make the following dispositions of futures trust fund assets only at the direction of the futures trust enterprise:
1.Adjusting the fund’s investment portfolio as required by trading and investment strategies.
2.Making adjustments to the margin account or paying premiums, as required by futures trading strategy requires.
3.Paying fees to be borne by the fund per stipulations of the futures trust deed.
4.Paying distributable income to beneficial owners of the fund per stipulations of the futures trust deed.
5.Paying the redemption price to beneficial owners for redemption of their beneficial certificates.

If a fund custodian learns that a futures trust enterprise has violated a futures trust deed or applicable laws or regulations, it shall immediately request, pursuant to the futures trust deed, that the futures trust enterprise perform its obligations under the deed or under the applicable laws or regulations; if there is a likelihood of injury to the rights or interests of beneficial owners, it shall immediately report to the competent authority and copy the report to the Futures Association.
When intent or negligence by a futures trust enterprise results in a negative impact on the assets of a futures trust fund, the fund custodian shall seek recovery of the assets in accordance with the futures trust deed in the interests of the fund's beneficial owners.
When the fund custodian performs its custodial duties and, pursuant to the provisions of paragraph 1, requests the futures trust enterprise to perform its obligations, and the futures trust enterprise fails to perform those obligations with resulting injury to the interests of beneficial owners, and if the fund custodian thereupon issues written notification directing the futures trust enterprise to rectify the matter within a prescribed time period and the futures trust enterprise subsequently fails to comply, the custodian institution, after applying and receiving permission from the competent authority, may convene a beneficial owners meeting to transfer management of the fund to another futures trust enterprise.

If a fund custodian violates the Futures Trading Act, regulations authorized and adopted pursuant to that Act, or the stipulations of the futures trust deed with a resulting negative impact on futures trust fund assets, the futures trust enterprise shall seek recovery of the assets in the interests of the fund's beneficial owners.
When a trust enterprise that concurrently operates a futures trust enterprise and keeps custody of futures trust fund assets pursuant to approval from the competent authority, and through intent or negligence violates the Futures Trading Act, regulations authorized and adopted pursuant to that Act, or the stipulations of a futures trust deed with a resulting negative impact on futures trust fund assets, and when there is an established trust supervisor, the trust supervisor shall seek recovery of the assets in the interests of the beneficial owners of the fund.

If a fund custodian is unable to continue performing its custodial obligations for a futures trust fund due to dissolution, suspension or termination of business or the cancellation or voiding of its business approval, the futures trust enterprise shall consult with other fund custodians to find one to succeed to the obligations of the original fund custodian, subject to the approval of the competent authority.
If a fund custodian is obviously deficient in performing its custody obligations for a futures trust fund, the competent authority may order the futures trust enterprise to transfer the fund to the custody of another fund custodian.
When the futures trust enterprise is unable to act as required pursuant to paragraph 1 and the preceding paragraph, the Futures Association may consult with the Trust Association of the R.O.C to arrange for another fund custodian to succeed to the custodial obligations; if no other fund custodian is available, the futures trust enterprise shall terminate the futures trust deed.
If a fund custodian resigns from its custodial obligations for a given fund and negotiates with the futures trust enterprise for a change to another custodian or the change is made by resolution of a meeting of the fund's beneficial owners, the matter shall be reported to and approved by the competent authority.
The successions, transfers, or changes referred to in the preceding four paragraphs shall be publicly announced by the futures trust enterprise.

When the futures trust deed for a futures trust fund offered to unspecified persons stipulates that beneficial owners are entitled to request redemption of the beneficial certificates, the beneficial owners may request in writing or by other stipulated means that the futures trust enterprise redeem the beneficial certificates, and the futures trust enterprise may not refuse to do so; payment of the redemption price may not be delayed, provided that under any of the following circumstances, and with the permission of the competent authority, this provision shall not apply:
1.Futures, securities, OTC, foreign exchange, or other related markets suspend trading for reasons other than regular holidays.
2.Normal communications are interrupted.
3.Remittance transactions are restricted.
4.Other extraordinary circumstances make it impossible to receive redemption requests or to pay redemption prices.
The redemption price of the beneficial certificates referred to in the preceding paragraph shall be calculated based on the net asset value of the futures trust fund as of the business day following the receipt of a redemption request by the futures trust enterprise or its fund distributor. When the redemption prices payable exceed the level of assets to be maintained according to the ratio set by Article 50, another method of calculating the redemption price may be adopted in accordance with the futures trust deed.
Redemption procedures for futures ETFs may be carried out as stipulated in the futures trust deed without regard for the restrictions of the preceding two paragraphs.
Redemption procedures and time periods for payment of redemption prices for futures trust funds offered to persons meeting certain eligibility requirements are as stipulated in the futures trust deed.

When a futures trust enterprise offers a futures trust fund to unspecified persons for purposes of domestic investment, it shall pay redemption prices within five business days after the business day following its receipt of a beneficial owner's request for redemption. For futures trust fund engaging in trades conducted pursuant to Article 38, paragraph 1, subparagraph 2, the futures trust enterprise may pay redemption prices within five business days after the second business day following receipt of a beneficial owner's request for redemption.
When a beneficial owner requests redemption of a portion of its beneficial certificates, the futures trust enterprise shall pay the redemption price in accordance with the time limits of the preceding paragraph, and shall carry out registry and book-entry transfer within seven business days after the second business day following receipt of the beneficial owner's request for redemption.
When a beneficial owner requests redemption of a futures ETF offered by a futures trust enterprise to unspecified persons, the payment of the redemption price shall be handled in accordance with the futures trust deed.