Regulations Governing Payment Operations of Securities Investor and Futures Trader Protection Funds Article 7

Payments made by the protection institution pursuant to Article 21, paragraph 1, subparagraph 2 of the Act shall be in cash.The amount of any single payment by the protection fund to an individual securities investor or futures trader of any securities firm or futures commission merchant shall be limited to NT$1 million. The maximum total amount of a single compensation payment by a protection fund to a group comprising all securities investors or futures traders of a securities firm or futures commission merchant shall be set by the protection institution and reported to the Financial Supervisory Commission, Executive Yuan ("FSC") for approval. The maximum amount shall be not less than NT$100 million.In the event that the total amount of compensation receivable by a group comprising all securities investors or futures traders of a given securities firm or futures commission merchant after adjustment pursuant to paragraph 2 exceeds the upper limit set forth in the preceding paragraph, the amount of compensation receivable by all securities investors or futures traders shall be reduced in proportion to the amount receivable after adjustment pursuant to paragraph 2.The amounts set forth in paragraphs 2 and 3 may be adjusted by the protection institution in view of market conditions and the status of allocations to the protection fund; any such adjustments shall be reported to the FSC for approval.