(Establishment of the SITCA and Admission to Membership)
Securities investment trust enterprises and securities investment consulting enterprises may not commence business without being admitted to membership in the Securities Investment Trust and Consulting Association; without legitimate reason, the Securities Investment Trust and Consulting Association may not deny an application for membership thereby or attach improper conditions to its membership.
Unless otherwise provided in this Act, the Commercial Associations Act shall apply to the establishment, organization, and supervision of the Securities Investment Trust and Consulting Association referred to in the preceding paragraph.

(Directors and Supervisors: Numbers, Election Procedures, and Restrictions on Continued Service by Re-Election)
The Securities Investment Trust and Consulting Association shall install at least three directors and one supervisor, all of whom shall be elected by the general meeting of members from among the member delegates in accordance with the articles of association. Provided, at least one-fourth each of the directors and supervisors shall consist of related experts, among whom at least half shall be appointed by the Competent Authority, and the remainder shall be appointed by the boards of directors and supervisors and ratified by the Competent Authority. The rules governing such appointments shall be prescribed by the Competent Authority.
The directors and supervisors shall serve for a term of three years. Those serving by re-election may not exceed one-half. If those serving by re-election exceed one-half, they shall be kept or eliminated on the basis of the relative numbers of votes they received, with the resultant vacancies to be occupied by member delegates not serving by re-election, likewise based sequentially upon the relative numbers of votes that they received. The chairman of the board of directors is eligible for re-election once only.

(SITCA Articles of Association and Governing Regulations)
The Competent Authority shall prescribe regulations governing the regulation and supervision of Securities Investment Trust and Consulting Association business by the Competent Authority, the required content of the articles of association of the Securities Investment Trust and Consulting Association, the qualification requirements for the responsible persons and associated persons of the Securities Investment Trust and Consulting Association, its finances and business, and other compliance requirements.

(Collection of Necessary Fees)
The Securities Investment Trust and Consulting Association may collect some fees from its members in addition to the fees set forth by the Commercial Associations Act, as necessary to effect the function of self-regulation and to coordinate with the development of securities investment trust and consulting business. The categories and rates of such fees shall be proposed by the Securities Investment Trust and Consulting Association and ratified by the Competent Authority.

(SITCA Missions)
The missions of the Securities Investment Trust and Consulting Association include the following matters, in addition to the matters set out in Article 5 of the Commercial Associations Act:
1. adopting self-regulatory rules and overseeing self-regulation by its members.
2. carrying out matters that the Competent Authority has authorized it to handle.
3. imposing sanctions on members who violate acts, regulations, or self-disciplinary rules, such sanctions including suspension of privileges, imposition of penalties, warnings, orders to make corrections by a deadline, and so forth; or requiring a member to suspend an associated person thereof from executing his or her duties for a period of one to six months.
4. investigating whether members are abiding by acts, regulations, and self-regulatory rules.
5. in cases where a member's business operations are obviously unsound and have materially injured the rights and interests of investors, coordinating other members to assist in handling the business of the member, or reporting to the Competent Authority and asking it to make an appropriate disposition.
6. administering property of bankrupt members.
7. rendering dispositions to void or suspend the memberships of members who violate this Act.
Where the Securities Investment Trust and Consulting Association requires a member to suspend an associated person thereof from executing his or her duties under subparagraph 3 of the preceding paragraph, or renders a disposition under subparagraph 7 of the preceding paragraph, it shall report to the Competent Authority for recordation.
As necessary to the mission under paragraph 1, the Securities Investment Trust and Consulting Association may make inquiries of its members, require them to provide relevant materials for review, or notify them to give explanations; a member may not refuse to comply.

(SITCA Member Self-Regulatory Agreement and Regulations Governing Appeals Against Sanctions for Violations)
The Securities Investment Trust and Consulting Association shall adopt a member self-regulatory agreement and regulations governing appeals against sanctions for violations. These shall be enforced after they have been submitted to and passed by the general meeting of members and then reported to and ratified by the Competent Authority; the same shall apply to any amendments thereto.

(Competent Authority's Supervisory and Regulatory Authority Over SITCA)
When the Competent Authority deems necessary for purposes of protecting the public interest or rights and interests of beneficiaries, it may order the Securities Investment Trust and Consulting Association to amend its articles of association, rules, or resolutions, or to provide reference materials or reports, or to perform certain other acts.

(Competent Authority's Dispositive Authority Over SITCA Directors and Supervisors)
Where a director or supervisor of the Securities Investment Trust and Consulting Association violates an act or regulation, fails to abide by the Association's articles of association or rules, abuses his or her authority, or breaches the principle of good faith, the Competent Authority may issue an official reprimand or order the Securities Investment Trust and Consulting Association to dismiss the director or supervisor.

(Competent Authority's Authority to Sanction SITCA Members and Member Delegates)
The Securities Investment Trust and Consulting Association may, in accordance with the articles of association, impose necessary sanctions upon members or member delegates who violate its articles of association, rules, self-regulatory agreement, or related operational self-regulatory codes, or resolutions of the general members meeting or the board of directors.