Regulations Governing Futures Commission Merchants Article 2

A futures commission merchant shall prescribe an internal control system in accordance with the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets adopted by the Financial Supervisory Commission (FSC) and the regulations providing standards for the internal control systems of futures commission merchants adopted by futures-related agencies, such as the Taiwan Futures Exchange Corporation (TAIFEX).The operation of a futures commission merchant shall be in accordance with acts and regulations, articles of incorporation, and the internal control system referred to in the preceding paragraph.When a futures commission merchant operates futures brokerage business, it shall retain transaction vouchers and records of customer identification and registration sufficient for a complete and full understanding of the transaction for any transaction above a specific amount or suspected of money-laundering, and shall handle the case pursuant to the Money Laundering Control Act and the internal control systems.The prescription and amendment of the internal control system referred to in paragraph 1 above shall be approved by the board of directors, and a record thereof shall be kept on file. Any amendments to be made pursuant to notices from the FSC or futures-related agencies shall be made within the specified time limit.