Standards Governing the Establishment of Securities Investment Trust Enterprises Article 16

A trust enterprise applying to concurrently operate securities investment trust business pursuant to the provisions of Article 6 of the SITC Act and to the preceding article shall meet the following conditions:1.Has net worth per share of not less than par value, as shown in the CPA-audited and certified financial report for the most recent period.2.Has not, during the last half year, been sanctioned under Article 103, subparagraph 1 of the SITC Act, Article 66, subparagraph 1 of the Securities and Exchange Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act, and has not on 3 or more occasions been given an official reprimand and ordered to achieve improvement within a specified period of time under Article 44 of the Trust Enterprise Act.3.Has not, during the last two years, been sanctioned under Article 103, subparagraphs 2 to 5 of the SITC Act, Article 66, subparagraphs 2 to 4 of the Securities and Exchange Act, or Article 100, paragraph 1, subparagraphs 2 to 4 of the Futures Trading Act, or sanctioned under Article 44, subparagraphs 1 to 3 of the Trust Enterprise Act.