Regulations Governing Permission and Administration of Securities and Futures Business Dealings and Investment Between the Taiwan Area and the Mainland Area Article 33

A Mainland-area futures company or a Mainland-invested futures company that meets the following requirements may apply to the competent authority for permission to make equity investment in FCMs in the Taiwan Area:1. Experience in international futures business.2. Sustained profitability over the most recent 3 years, and a financial report for the most recent period, audited or reviewed by a CPA of its place of registration, showing a net worth per share not less than par value.3. No violation during the preceding 5 years of the regulations of the competent futures authority of its place of registration.4. Sound corporate governance, risk management, and internal control systems.5. A clearly defined source of funding for the investment.6. Transparency of financial and business information.7. Permission for the investment from the competent futures authority of its place of registration.8. No receipt within the most recent 5 years of any material disposition from the competent authority, self-regulatory organization, or administrative or judicial agency of the place of its registration.9. A good social reputation, and no adverse record with administrative agencies for commerce or industry or with commercial banks within the preceding 3 years.10. No current investigation of the company by the competent authority of the place of its registration for conduct in violation of regulations.11. A continuous Class A or higher rating in accordance with the Mainland Area's regulations for classification and supervision of securities firms.12. Paid-in capital of at least NT$400 million.13. Other requirements imposed by the regulations of the competent authority.The provisions of Article 25, paragraph 2 apply mutatis mutandis to the meaning of "experience in international futures business" in subparagraph 1 of the preceding paragraph.