Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants Article 7-1

A responsible person of an FCM may not serve as a responsible person of a bank, financial holding company, trust company, credit cooperative, credit department of a farmers' (fishermen's) association, bills finance company, securities enterprise, insurance enterprise, or another futures enterprise. However, this restriction shall not apply in the following circumstances:1. Where it is for purposes of an investment relationship between the FCM and such institutions, and there is no overlapping of the chairmen and/or managerial officers thereof, and the FSC has granted approval.2. Where there is a special need and the FSC has granted approval, a responsible person may serve as the chairman of such an institution.3. Where an FCM is a subsidiary of a financial holding company, a responsible person of the FCM may concurrently serve as a responsible person of such financial holding company or of another of its subsidiaries; provided, that there may not be overlapping of managerial officers between the subsidiaries.4. Where an FCM is a juristic-person director or supervisor of a financial holding company, its responsible person, for purposes of serving as a responsible person of that holding company, may concurrently serve as a director or supervisor of a subsidiary of that holding company.Where there is an investment relationship between an FCM and a non-financial institution that is a public issuer, no responsible person of the FCM may concurrently serve as the chairman or a managerial officer of such an investee company.An FCM shall establish internal audit and control mechanisms for any concurrent holding of positions by its responsible person to ensure the effective performance of the responsible person's principal duties and duties in the concurrently held position and to maintain normal business operations of the FCM; it may not involve any conflict of interest or violation of applicable futures regulations or the internal control system provisions, and the rights and interests of shareholders shall be protected.An FCM shall, based on its investment management needs, risk management policies, and the provisions of these Regulations, regularly evaluate the performance of any responsible person holding a concurrent position. The evaluation results shall serve as an important reference to determine whether the concurrently held position(s) will be maintained or reduced in number.