A managed futures enterprise meeting the following qualifications may apply to concurrently operate securities investment trust business, provided, however, that such an application may not be made if the managed futures enterprise is operated on a concurrent basis by an enterprise in another line of business:
1.Has been in operation for at least a full 3 years.
2.Has paid-in capital of no less than NT$300 million.
3.Has one or more shareholders meeting the qualification requirements in Article 8, with a shareholding or combined shareholding of no less than 20% of the total issued shares.
4.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.
5.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.
6.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 managed futures enterprise has been sanctioned under subparagraph 5 or 6 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 managed futures enterprise concurrently operating securities investment trust business.

A managed futures enterprise concurrently operating securities investment trust business shall set up an investment research department, a finance and accounting department, and an internal audit department. The same shall not apply, however, if such departments have already been set up.

In a managed futures enterprise concurrently operating 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 personnel engaging in discretionary trading for discretionary futures trading business, and vice versa.

A managed futures 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 to 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.Documentary proof for shareholder qualifications complying with Article 8.
5.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.
6.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.
7.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The managed futures 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 subject, mutatis mutandis, to the provisions in Articles 36 and 37 hereof.

Article 34 shall apply mutatis mutandis to a managed futures enterprise applying to concurrently operate securities investment trust business.

Upon an application by a managed futures 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.Noncompliance with Article 38, paragraph 1, subparagraph 3.
3.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.
4.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.
5.The application documents are found to contain any misrepresentation.