Standards Governing the Establishment of Futures Commission Merchants Article 24

Domestic securities firms applying for concurrent operation of futures business must meet the following requirements:1. The financial report for the most recent period, audited and attested by a certified public accountant, shows no accumulated deficits, and further conforms to the standards set forth in Article 49 of the Securities and Exchange Act.2. Within the last 3 months, the applicant has not received a warning from the FSC in accordance with Article 66, paragraph 1, subparagraph 1 of the Securities and Exchange Act.3. Within the last half year, the applicant has not been ordered by the FSC to discharge any directors, supervisors, or managers in accordance with Article 66, paragraph 1, subparagraph 2 of the Securities and Exchange Act.4. Within the last year, the applicant has not been ordered by the FSC to suspend its business, in whole or in part, in accordance with Article 66, paragraph 1, subparagraph 3 of the Securities and Exchange Act.5. Within the last 2 years, the applicant has not had any of the establishment approvals for its branch offices revoked by the FSC in accordance with any provisions of the Securities and Exchange Act.6. Within the last year, the applicant has not had its trading rights terminated or restricted by the Taiwan Stock Exchange or the Taipei Exchange in accordance with their bylaws.7. The applicant's regulatory capital adequacy ratio has not dropped below 150 percent.8. Other requirements prescribed by the FSC.If a securities firm fails to meet any of the requirements set forth in subparagraphs 2 to 6 of the preceding paragraph, but has shown concrete improvement in the circumstances, and the FSC has recognized the improvement, the securities firm may be exempted from the relevant requirement.