Standards Governing the Establishment of Managed Futures Enterprises Article 17

A futures broker, futures trust enterprise, securities investment trust enterprise, or securities investment consulting enterprise shall possess the following qualifications in order to apply to concurrently operate a managed futures enterprise:1.Its CPA-audited and attested financial report for the most recent period must show a net worth per share not lower than par value.2.It must not, within the preceding three months, have received from the Futures Association or the Securities Investment Trust and Consulting Association of the R.O.C. (SITCA), in accordance with their respective self-regulatory rules, any warning, penalty for default, or disposition suspending all or part of the rights and interests it enjoys as a member or voiding or temporarily suspending its membership qualification.3.It must not have received any disposition issued pursuant to Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act, Article 103, subparagraph 1 of the Securities Investment Trust and Consulting Act, or Article 66, subparagraph 1 of the Securities and Exchange Act within the past six months.4.It must not have received any disposition issued pursuant to Article 100, paragraph 1, subparagraphs 2 through 4 of the Futures Trading Act, Article 103, subparagraphs 2 through 5 of the Securities Investment Trust and Consulting Act, or Article 66, subparagraphs 2 through 4 of the Securities and Exchange Act within the past two years.The competent authority may refuse to grant approval to an entity that has applied to concurrently operate a managed futures enterprise when that entity has received a disposition or other penalty prescribed by subparagraph 2, subparagraph 3, or subparagraph 4 of the preceding paragraph, and following an order from the competent authority for improvement, has failed to make concrete improvements by the time of its application.