The examination of the financial affairs and operation of securities finance enterprises shall be handled pursuant to the provisions of Article 18-1 and Article 38-1 of the Securities and Exchange Act and Article 45 of the Banking Act.

Securities finance enterprises taking any of the following actions shall report to the competent authority for its approval in advance:
1.Amendment of Articles of Incorporation.
2.Termination or resumption of business.
3.Dissolution or merger.
4.Transfer or assumption from another of the entire or a substantial portion of business or property.
5.Establishment or revocation of branch offices or other business office.
6.Change of business operation location.
7.Re-investment.
8.Offering or issuing securities.
9.Other items required to be approved pursuant to the competent authority's stipulations.

Where any one of the following occurs, securities finance enterprises shall report to the Ministry of Finance and the competent authority:
1.A resolution of the shareholders or board of directors.
2.A change of position of directors, supervisors or managers.

Any change of business personnel of securities finance enterprises shall be printed in a report and collectively reported to the competent authority for its record each month.

The directors, supervisors, managers and business personnel of securities finance enterprises shall not engage in the following actions:
1.Engaging in securities trading directly or indirectly based on the information learned from the position.
2.Disclosing secrets learned as a result of their positions, except in response to a legal inquiry.
3.False, deceptive, and other kinds of acts which are sufficient to mislead others in handling the business in Article 5.
4.Other violations of laws or regulations.
A securities finance enterprise shall have one general manager, who shall be responsible for the overall administration of the business operations of the entire company, and it may not have any other person in an equivalent position.
The chairman of a securities finance enterprise may not concurrently serve as the general manager. However, this restriction does not apply if any of the following circumstances exists and if approval has been obtained from the Financial Supervisory Commission (FSC):
1.The securities finance enterprise will cease to exist as a result of dissolution or merger, and the chairman or general manager has resigned or has been removed from his or her duties by order of the FSC.
2.The securities finance enterprise's business permission was voided by the FSC, and the chairman or general manager has resigned or has been removed from his or her duties by order of the FSC.
3.Any other special cause.

Before the 11 October 2010 amendment to these Regulations enters into force, if a securities finance enterprise is not in compliance with any requirement of paragraph 2 of the preceding article, it shall make adjustments within 6 months starting from the date the amendment enters into force, and if it is not in compliance with any requirement of paragraph 3 of the preceding article, it shall make adjustments within 1 year starting from the date the amendment enters into force.