(Approval for Public Offering of a Fund)
A securities investment trust enterprise may not publicly offer a securities investment trust fund without first obtaining approval from the Competent Authority or effective registration by filing with the Competent Authority. The Competent Authority shall prescribe regulations governing the documents required to be submitted and the examination procedures for approval of applications or effective registration filings, conditions for approval or effective registration, and other compliance requirements.
Operational procedures for the public offering, issuance, and sale of funds, and the subscription and redemption thereof, shall be drafted by the Securities Investment Trust and Consulting Association and submitted to the Competent Authority for ratification.
If a fund mentioned in the preceding two paragraphs is a foreign-raised fund investing domestically, or is a domestically raised fund investing overseas, approval from the Central Bank is required.

(Private Placement of Beneficial Certificates: Counterparts, Obligations, Filing, and Transfer)
A securities investment trust enterprise may carry out a private placement of beneficial interest certificates with the following counterparts:
1. Banks, bills finance enterprises, trust enterprises, insurance enterprises, securities enterprises, or other juristic persons or institutions approved by the Competent Authority.
2. Natural persons, juristic persons, or funds meeting conditions set by the Competent Authority.
The total number of offerees under subparagraph 2 of the preceding paragraph may not exceed 99 persons.
Upon the reasonable request by a counterpart(s) under subparagraph 2 of paragraph 1 prior to consummation of the private placement, a securities investment trust enterprise shall be obligated to provide financial, business, or other information relevant to the current private placement of securities investment trust beneficial interest certificates.
Within five days from the date that the price of the privately placed beneficial interest certificates has been paid in full, the securities investment trust enterprise shall report the same to the Competent Authority; the particulars required to be reported shall be specified by the Competent Authority. A person intending to raise funds through private placement overseas for investment domestically or to raise funds through private placement domestically for investment overseas shall, when filing the report, submit therewith a photocopy of the Central Bank approval letter.
The restrictions on transfers of privately placed beneficial interest certificates shall be conspicuously noted on the beneficial interest certificates, and shall be stated in the relevant written documentation delivered to the offeree or purchaser.
The provisions of Article 43-7 and Article 43-8, paragraph 1, of the Securities and Exchange Act shall apply mutatis mutandis to privately placed beneficial interest certificates.

(Required Contents of the Securities Investment Trust Contract)
Unless the Competent Authority provides otherwise, a securities investment trust contract shall specify the following particulars:
1. name and address of the securities investment trust enterprise and the fund custodian institution.
2. name and duration of the securities investment trust fund.
3. rights, obligations, and legal responsibilities of the securities investment trust enterprise.
4. rights, obligations, and legal responsibilities of the fund custodian institution.
5. rights, obligations, and legal responsibilities of the beneficiaries.
6. basic policies and scope for managing the securities investment trust fund to invest in securities and trade securities-related products.
7. matters relating to the distribution of proceeds of the securities investment trust.
8. matters relating to the redemption of beneficial interest certificates.
9. fees to be borne by the securities investment trust fund.
10. management and custodial fees of the securities investment trust enterprise and the fund custodian institution.
11. calculation of the net asset value of the securities investment trust fund and the beneficiary units.
12. matters relating to termination of the securities investment trust contract.
13. matters relating to convening of beneficiaries meetings, quorum requirements, voting requirements, and the method for resolutions.
A securities investment trust contract template shall be drafted by the Securities Investment Trust and Consulting Association in consultation with the Trust Association, and submitted to the Competent Authority for ratification.

(Limits on Beneficial Certificate Redemption Fees and Management and Custodial Fees)
Depending on market conditions, the Competent Authority may impose ceilings on the fees charged for purchase or redemption of beneficial interest certificates by beneficiaries, and the management or custodial fees charged by securities investment trust enterprises or fund custodian institutions, and impose restrictions on the types of fees to be borne by securities investment trust funds.

(Types of Funds and Investment or Trading Scope and Restrictions)
The Competent Authority will specify the types of securities investment trust funds that securities investment trust enterprises may publicly offer or privately place, the scope of investments or trading thereby, and restrictions thereupon.
Where investments or trading by funds under the preceding paragraph involves any item other than securities-related products, the Competent Authority shall first consult with the competent authority for the relevant industry and obtain its consent; if it involves the money market, it shall also consult with and obtain the consent of the Central Bank.

(Prospectus and Private Placement Memorandum)
A securities investment trust enterprise publicly offering a securities investment trust fund shall deliver a prospectus to prospective subscribers in the manner prescribed by the Competent Authority.
A securities investment trust enterprise privately placing a securities investment trust fund with specific persons shall be obligated to deliver a private placement memorandum to offerees at their request.
A securities investment trust enterprise that fails to deliver a prospectus or private placement memorandum in accordance with the preceding two paragraphs shall be held liable for injury consequently sustained by bona fide trading counterparties.
The provisions of Article 32 of the Securities and Exchange Act shall apply mutatis mutandis to liability for damages for any injury sustained by a bona fide counterparty because of any misrepresentation or concealment in the main required content of a prospectus or private placement memorandum.
The Competent Authority shall prescribe the matters required to be specified in a prospectus under paragraph 1 and a private placement memorandum under paragraph 2.

(Offshore Funds)
No person may, itself or as an agent, engage within the Republic of China in the public offer, sale, or investment consultancy of offshore funds without first obtaining approval from the Competent Authority or effective registration upon filing with the Competent Authority.
Private placement of offshore funds shall comply with the provisions of Article 11, paragraphs 1 to 3, and may not involve any act of general advertising or public solicitation. If those provisions are not complied with, it shall be deemed public offering of offshore funds; the same restriction shall apply to any act of general advertising or public solicitation in respect of investment consultancy for offshore funds.
Securities investment trust enterprises, securities investment consulting enterprises, securities firms, issuers of offshore funds and institutions designated thereby, and other institutions designated by the Competent Authority may engage in the business specified in paragraph 1 within the Republic of China; the Competent Authority shall prescribe regulations governing related qualifications and conditions, application or filing procedures, business items that may be engaged in, and other compliance requirements.
The Competent Authority shall prescribe regulations governing the types, investment or trading scopes, and restrictions thereupon, of offshore funds that may be publicly offered, sold, or addressed in investment consulting, within the Republic of China by persons, themselves or as agents, and the relevant application or filing procedures and other compliance requirements.
Where the public offer or sale of offshore funds within the Republic of China by a person, itself or as an agent, as referred to in paragraph 1 involves inward or outward remittance of funds, approval shall be obtained from the Central Bank.

(Assets Acquired in the Name of a SITE or SICE on Behalf of Investors Shall Be Kept Separate and Independent of the Enterprise's Own Property)
Assets lawfully acquired in the name of a securities investment trust enterprise or a securities investment consulting enterprise on behalf of its investors shall be kept separate and independent of the enterprise's own property.
Creditors may not make any claim or exercise any other right against the assets under the preceding paragraph to satisfy any debt owed by a securities investment trust enterprise or a securities investment consulting enterprise with respect to its own property.