A futures trust enterprise intending to use the assets of its futures trust fund to purchase and hold securities with an aggregate market value representing 40 percent or greater of the net asset value of the futures trust fund shall make a prior application to concurrently operate securities investment trust business in accordance with FSC requirements. The same shall not apply, however, in the case of offering and issuance of a futures trust fund-of-funds or a principal protection futures trust fund.

A futures trust enterprise applying to concurrently operate securities investment trust business shall have the following qualifications, provided, however, that such an application may not be made if the futures trust enterprise is operated on a concurrent basis by an enterprise in another line of business:
1.Has paid-in capital of no less than NT$300 million.
2.Has net worth per share of not less than par value, as shown in the CPA-audited and certified financial report for the most recent period.
3.Has not, during the last half year, been sanctioned under Article 103, subparagraph 1 of the SITC Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act.
4.Has not, during the last two years, been sanctioned under Article 103, subparagraphs 2 to 5 of the SITC Act, or Article 100, paragraph 1, subparagraphs 2 to 4 of the Futures Trading Act.
If a futures trust enterprise has been sanctioned under subparagraph 3 or 4 of the preceding paragraph and has been ordered to achieve improvement, but has failed to effect concrete improvement by the time it applies to concurrently operate securities investment trust business, the FSC may deny its application.

Article 73 of the SITC Act shall apply to a futures trust enterprise concurrently operating securities investment trust business.

When a futures trust enterprise concurrently operates securities investment trust business, the functions of associated persons engaging in investment or trading decision-making for any of its offered securities investment trust funds may not be performed concurrently by any of its futures trust fund managers, and vice versa.

A futures trust enterprise intending to concurrently operate securities investment trust business shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.A business plan, specifying, with respect the concurrently operated securities investment trust business: operational principles; internal organization and segregation of duties; planning for issuance of securities investment trust funds through public offering or private placement, and for business development, for the coming 2 years; personnel recruitment and training; and general description of premises and facilities.
2.Minutes of the relevant board of directors meetings, showing the resolution to concurrently operate securities investment trust business.
3.A register of directors and supervisors.
4.Written statement(s) that none of the circumstances in Article 73 of the SITC Act exists with respect to any shareholder holding 5% or more of the total issued shares.
5.The CPA-audited and certified financial report for the most recent period. If at the time of application 6 months have already elapsed since the beginning of the fiscal year, a CPA-audited and certified financial report for the first half-year shall be additionally submitted.
6.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The futures trust enterprise may simultaneously apply for a branch unit to provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds. The documents and procedures for the application for permission and for re-issuance of a business license shall be as provided in Articles 36 and 37 hereof.

A futures trust enterprise that applies to concurrently operate securities investment trust business shall, within 6 months from the day the FSC grants permission, apply to the FSC for re-issuance of a business license by filling out and submitting an application form, together with the following documents:
1.Documentary proof of amendment to company registration.
2.Documentary proof of qualifications showing that the chairperson and general manager meet the qualifications set out in the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises.
3.A register of qualified managerial officers, department supervisors, and associated persons for the concurrently operated securities investment trust business, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
4.Written statement(s) that none of the circumstances in Article 68, Article 73, and Article 78, paragraph 3 of the SITC Act exists with respect to any director or supervisor.
5.When a director or supervisor is a juristic person, a written statement that none of the circumstances in Article 68 of the SITC Act exists with respect to any representative or designated representative exercising duties on its behalf.
6.Written statement(s) that none of the circumstances in Article 68 and Article 78, paragraph 3 of the SITC Act exists with respect to any managerial officer or department supervisor conducting the concurrent operation of securities investment trust business.
7.Written statement(s) that none of the circumstances in Article 68 of the SITC Act exists with respect to any associated person conducting the concurrent operation of securities investment trust business.
8.Written statement(s) that all managerial officers, department supervisors, and associated persons for the concurrently operated securities investment trust business are hired as full-time staff.
9.The CPA-audited and certified financial report for the most recent period. The report is not required, however, if it covers the same period as that covered by the financial report submitted in the application for permission.
10.A written description of the internal control system for the concurrently operated securities investment trust business, and an unqualified audit opinion letter issued by a CPA.
11.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The internal control system referred to in subparagraph 10 of the preceding paragraph shall set out precautionary procedures and risk segmentation mechanisms to prohibit and prevent the occurrence of any conflict of interest with beneficial owners or customers or any act prejudicial to the rights or interests of beneficial owners or customers, in connection with codes of conduct, and rules governing concurrent appointment, of managerial officers, department supervisors, and associated persons, information sharing, sharing of operating facilities or premises, or advertising, public informational meetings, and other business promotion activities.
The permission granted to the futures trust enterprise for such concurrent operation will be revoked if it fails to apply for re-issuance of a futures trust enterprise business license within the period set out in paragraph 1. Notwithstanding the foregoing, if there is legitimate reason, application may be filed with the FSC before expiration of that period for a maximum extension of 3 months, one time only.
The futures trust enterprise may not commence its concurrent operation of securities investment trust business unless and until it has become a member of the SITCA.

Upon an application by a futures trust enterprise to concurrently operate securities investment trust business, the FSC may deny permission in any of the following circumstances:
1.Any violation of Article 68, Article 73, or Article 78, paragraph 3 of the SITC Act with respect to any responsible person or department supervisor.
2.The business plan, or the system of internal controls over the concurrently operated securities investment trust business, is not concrete enough or cannot be effectively implemented.
3.There is likelihood that its professional competence is insufficient for sound and effective operation of the concurrently operated securities investment trust business, or denial of permission is otherwise deemed necessary to protect the public interest.
4.The application documents are found to contain any misrepresentation.

When a futures trust enterprise concurrently operating securities investment trust business intends to have any branch unit to provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds, it shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.Minutes of the relevant board of directors meetings, showing the resolution for the branch unit to provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds.
2.A written description of the internal control system for the branch unit providing support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds.
3.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The internal control system referred to in subparagraph 2 of the preceding paragraph shall set out rules governing concurrent appointment, and codes of conduct, of any and all managerial officers, department supervisors, and associated persons of the branch unit who provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds.

When a futures trust enterprise concurrently operating securities investment trust business files an application pursuant to the preceding Article, it shall, within 6 months from the day the FSC grants permission, apply to the FSC for re-issuance of a branch unit business license by filling out and submitting an application form, together with the following documents:
1.A register of qualified managerial officers, department supervisors, and associated persons of the branch unit, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
2.Written statement(s) that none of the circumstances in Article 68 and Article 78, paragraph 3 of the SITC Act exists with respect to any managerial officer or department supervisor of the branch unit.
3.Written statement(s) that none of the circumstances in Article 68 of the SITC Act exists with respect to any associated person of the branch unit.
4.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The permission granted to the futures trust enterprise concurrently operating securities investment trust business to allow its branch unit to provide support in the public offering, sale, and private placement of beneficial certificates of securities investment trust funds, shall be revoked if the futures trust enterprise fails to apply for re-issuance of a business license for the branch unit within the period set out in the preceding paragraph. Notwithstanding the foregoing, if there is legitimate reason, application may be filed with the FSC before expiration of that period for a maximum extension of 3 months, one time only.