Regulations Governing Futures Trust Funds Article 18

The provisions of the preceding article apply when a futures trust enterprise applies to offer a futures trust fund domestically for the purpose of conducting overseas futures transactions or investing in futures-related spot instruments, and the competent authority may in addition deny approval of the application given any of the following circumstances:1.The futures trust enterprise has received any disposition within the past year pursuant to Article 100 of the Futures Trading Act, Article 66 of the Securities and Exchange Act, or Article 103 of the Securities Investment Trust and Consulting Act. This provision will not apply given substantive improvement by the futures trust enterprise, recognized by the competent authority, with respect to the subject matter of the disposition.2.The futures trust enterprise lacks the capacity for research and investment in overseas futures or securities markets and has not obtained the necessary technical capacity for global trade or investment through cooperation with an overseas professional institution.3.Within the preceding year, the futures trust enterprise was involved in speculation regarding New Taiwan Dollar exchange rate trends in connection with recommending a futures trust fund.