Where any of the circumstances set forth in the provisions of Article 9, Paragraph 1 herein apply, a person may not serve in the capacity of responsible person, department head, manager of a branch organization, or business personnel of a SITE; persons already serving in such capacity shall be dismissed.

The general manager of a SITE shall possess leadership ability and be capable of effectively managing a SITE, and shall possess one of the following qualifications:
　1. Qualification as a securities investment analyst obtained in accordance with the Rules Governing Securities Investment Consulting Enterprises, and with three or more years of relevant experience at a professional investment institution.
　2. Graduate of a local or foreign junior college recognized by the Ministry of Education or an equivalent or higher degree, with five or more years of relevant experience at a professional investing institution and having held the post of assistant manager or equivalent position for one or more years, or having held the position of manager or an equivalent position for three years or more, and with a good record of performance.
　3. Graduate of a local or foreign junior college recognized by the Ministry of Education or an equivalent or higher degree, with five or more years of administrative or management experience in securities, futures, finance, or insurance, and having held a level nine Ch'ien-jen civil service position or equivalent post three or more years with a good record of performance.
　4. Other academic and career qualifications sufficient to establish professional knowledge of securities and finance and management experience and leadership ability adequate for sound and effective management of a SITE.
　Where the general manager of a SITE is unable to execute the duties of his position as a result of a period of leave, suspension of execution of duties, or for other reasons, the SITE shall appoint a representative agent with equivalent qualifications to represent the general manager.
　The scope of the professional investment institution and relevant experience referred to in Paragraph 1 shall be determined by the SFC.
A SITE shall submit evidentiary documents showing proposed selection qualifications to the SFC for review and approval prior to the hiring of a general manager.
　The general manager of a SITE may not concurrently hold the position of director, branch manager, or securities investment fund manager in the same enterprise.
　Where, prior to enforcement of these Rules on 17 October 2001, a SITE employs a general manager who does not meet the qualifications set forth in the preceding paragraph, the SITE shall remedy such condition within one year after the Rules become effective.

　The assistant general manager of a SITE shall possess leadership ability and the ability to effectively assist in the management of a SITE. The assistant manager overseeing the investment research department shall also possess one of the following qualifications:
　1. Qualification as a securities investment analyst obtained in accordance with the Rules Governing Securities Investment Consulting Enterprises, with two or more years of relevant experience at a professional investment institution.
　2. Graduate of a local or foreign junior college recognized by the Ministry of Education or an equivalent or higher degree, with five or more years of relevant experience at a professional investing institution and having held the post of manager or an equivalent position for two or more years with a good record of performance.
　3. Graduate of a local or foreign junior college recognized by the Ministry of Education or an equivalent or higher degree, with four or more years of administrative or management experience in securities, futures, finance, or insurance, and having held a level eight Ch'ien-jen civil service position or equivalent post two or more years with a good record of performance.
　4. Other academic and career qualifications sufficient to establish professional knowledge of securities and finance, management experience, and leadership ability adequate for sound and effective management of SITE business.
　The scope of the professional investment institution and the relevant experience referred to in the preceding paragraph shall be determined through the application, mutatis mutandis, of the provisions of Paragraph 3 of the preceding article.
　Where the responsibilities of a position are the same as those of the assistant general manager overseeing an investment research department as set forth in other laws or the articles of incorporation of an investment trust enterprise, such position shall also be subject to application, mutatis mutandis, of the provisions of Paragraph 1 of this article.

A SITE shall establish departments for investment research, finance and accounting, and internal auditing and control.

The term "business personnel" as used in these Rules shall refer to personnel engaged in the following:
　1. Handling the offering and issuance of beneficiary certificates.
　2. Investment research and analysis.
　3. Fund operation and management.
　4. Execution of trades in marketable securities with funds.
　5. Research and analysis related to discretionary accounts, investment strategies, or execution of trades.
　6. Internal auditing and control.
　7. Serving as leading accountant.
　8. Assisting in any of the matters set forth in the preceding seven subparagraphs.
　The number of business personnel listed under Subparagraphs 1-6 above shall not be less than one-half of the total number of business personnel.

The department heads, branch managers and business personnel of a SITE shall be hired on a full-time basis; prior to assumption of duties, they shall be registered with the Association by the SITE to which they belong and shall not perform business duties without such registration.
　Where there is any change in the SITE personnel listed in the preceding paragraph, the SITE shall register the change with the Association within five business days after the change. Prior to effective registration, the SITE to which such personnel belong may not disclaim responsibility for their conduct.

The items to be included in registration of the responsible person, department heads, branch managers, and business personnel of a SITE shall be drafted by the SFC, and shall take effect after submission to and approval by the Association; the same shall apply to any amendments thereto.

The internal auditing personnel of a SITE may not undertake matters outside the scope of their registration, and other business personnel may not concurrently assume the duties of internal auditing personnel. The internal auditing personnel shall audit the finances and business of the company on a regular basis and at various intervals and prepare a written record for inspection.

The SITE shall appoint a fund manager, with any one of the following qualifications, for each securities investment trust fund who shall bear full responsibility for the utilization of that fund:
　1. Qualification as a securities investment analyst obtained in accordance with the Rules Governing Securities Investment Consulting Enterprises.
　2. Qualification through a high-level securities firm personnel test administered by an agency at the request of the Securities Association, or holding a certificate issued by the SFC for qualification in the same test, and three or more years of experience at a professional investment institution a securities investment analyst or in securities investment strategy.
　3. Qualification through a securities investment trust and consulting enterprise personnel test administered by an agency at the request of the Association, and two or more years of experience at a professional investment institution in securities investment analysis or securities investment strategy.
　4. An incumbent fund manager who served in that position for one or more years prior to amendment and enforcement of these Rules on 17 October 2001 and continued in that position thereafter for a total combined period of two years.
　5. One or more years of experience as an investment manager handling full discretionary investment affairs for clients with an unblemished record.
　The "professional investment institution" referred to in the preceding paragraph shall be defined by the application, mutatis mutandis, of Article 18-3.
　The number, fund amount, and other qualifications of the funds for which a fund manager may be responsible shall be determined by the SFC.

Department heads, branch managers, and business personnel engaged in activities listed under Article 21, Paragraph 1, Subparagraphs 1-6, shall, in addition to the requirement that fund managers meet the qualifications in the preceding article, possess one of the following qualifications:
　1. Qualification as a securities investment analyst obtained in accordance with the Rules Governing Securities Investment Consulting Enterprises.
　2. Qualification through a securities investment trust and consulting enterprise personnel test administered by an agency at the request of the Association, and one or more years of experience at a professional investment institution relevant to securities or futures.
　3. Qualification through a high-level securities firm personnel test administered by an agency at the request of the Securities Association, or holding a certificate formerly issued by the SFC for qualification in the same test, and two or more years of experience relevant to securities or futures at a professional investment institution.
　4. Graduate of a local or foreign university recognized by the Ministry of Education or holding an equivalent or higher degree, while having three or more years of relevant experience as an associated person at a securities or futures institution or a trust enterprise.
　The scope of the "professional investment institution" and the relevant experience as provided in subparagraphs 2 and 3 of the preceding paragraph shall be defined by the application, mutatis mutandis, of Article 18-3.

The business personnel employed at a SITE shall attend pre-employment and on-the-job training courses at an institution designated by the SFC.
　Newly hired business personnel of a SITE and those returning after a leave of two or more years shall attend pre-employment courses within a half year of employment; business personnel already employed shall, during their term of employment, attend on-the-job training courses, the duration and content of which shall be determined by the SFC.
　Business personnel who have not yet attended the training courses referred to under Paragraph 1, or those who fail to qualify and also fail to obtain qualification after further supplementary training within one year, may not serve as SITE business personnel, and their registration as SITE business personnel shall be cancelled by the Association.

A SITE and its responsible person, department heads, branch managers and business personnel shall faithfully execute their duties under the principles of honesty and trustworthiness.
Except where otherwise provided by relevant laws and regulations, the SITE and the persons referred to in the preceding paragraph may not engage in the following types of conduct:
　1. Divulging information made known to them in the performance of their duties to any third party, or using such information for trading in securities or securities-related products;
　2. Purchasing or selling securities for themselves or for the benefit of any other person or engaging in cross-trading with consigned investment funds without legitimate reason when utilizing the securities investment trust fund for trading in securities or securities-related products;
　3. Conducting false, fraudulent, or other misleading advertising or promotional activities;
　4. Failing to re-allocate handling fees returned by security firms or futures commission merchants to fund assets or accepting other benefits when utilizing securities investment trust fund to trade in securities or securities-related products, provided that this restriction shall not apply where such practices are in conformance with SFC regulations;
　5. Promoting the sale of beneficiary certificates by agreeing upon or providing specific benefits or considerations or by bearing losses;
　6. Accepting money or other benefits for assigning proxies to attend shareholders meeting or exercising the voting rights of shares held by the securities investment trust fund;
　7. Attempting to inflate or deflate the trading price of certain securities on the securities exchange market or to perform other acts which may damage the rights and interests of the investors of a securities investment trust fund when using said fund to trade in securities or securities-related products;
　8. Changing a settled transaction made on a commission basis from the account of the fund to their own or another person's account or a full-discretion trading account, or from their own or other person's account or a full-discretion trading account to the account of the fund, when using the securities investment trust fund to trade in securities or securities-related products;
　9. Recommending trading in a particular stock or making judgments or predictions about the future price of a particular stock in a public forum or in the broadcast media.
　10. Using non-specialist personnel to solicit clients or providing unreasonable commissions.
　11. Engaging in other matters prohibited by the SFC.
The provisions of the preceding paragraph shall apply without exception to other employees of a SITE.
　The SITE shall establish internal personnel management rules as prescribed by the Association and implement the same.

Unless otherwise approved by the SFC, during the period from the time a SITE decides to utilize a securities investment trust fund to trade in a particular listed or over-the-counter stock until the time the securities investment trust fund no longer holds such stock, the responsible person, department heads, branch managers, or fund managers shall not engage in trading in the same stock.
The shares held by the persons referred to in the preceding paragraph shall include those held by their spouses and minor children, and those held on their behalf under another's name.
The responsible person of a SITE and its department heads, branch managers, fund managers, and interested parties shall, in accordance with SFC regulations, report any trading in listed or over-the-counter securities to the SITE to which they belong.
The provision of Article 5, Paragraph 3 herein regarding interested parties shall apply mutatis mutandis to the preceding paragraph.

The responsible person of a SITE and its department heads, branch managers, fund managers, or their spouses, when acting as a director, supervisor, manager, or shareholder with 5% or more of the total outstanding shares of a securities issuing company shall not participate in decision making when the SITE utilizes the securities investment trust fund to trade in the securities of such issuing company.
　The shares held by the persons referred to in the preceding paragraph shall include those held by their spouses and minor children, and those held on their behalf under another's name.

The SITE and its responsible person, department heads, branch managers, or shareholder's representative in the share issuing company from which the SITE purchases stocks shall not assume the position of director, supervisor or manager of such issuing company.

The responsible person, department heads, or branch managers of a SITE may not invest in other SITEs or concurrently act as a director, supervisor, or manager of another SITE, securities investment consulting enterprise, or securities firm.

Where a director or supervisor is a juristic person, Article 28, Paragraphs 1 and 2 and Articles 29-32 shall apply mutatis mutandis to its representative or designated representative in the performance of duties.