Standards Governing the Establishment of Securities Investment Trust Enterprises Article 38

A managed futures enterprise meeting the following qualifications may apply to concurrently operate securities investment trust business, provided, however, that such an application may not be made if the managed futures enterprise is operated on a concurrent basis by an enterprise in another line of business:1.Has been in operation for at least a full 3 years.2.Has paid-in capital of no less than NT$300 million.3.Has one or more shareholders meeting the qualification requirements in Article 8, with a shareholding or combined shareholding of no less than 20% of the total issued shares.4.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.5.Has not, during the last half year, been sanctioned under Article 103, subparagraph 1 of the SITC Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act.6.Has not, during the last two years, been sanctioned under Article 103, subparagraphs 2 to 5 of the SITC Act, or Article 100, paragraph 1, subparagraphs 2 to 4 of the Futures Trading Act.If a managed futures enterprise has been sanctioned under subparagraph 5 or 6 of the preceding paragraph and has been ordered to achieve improvement, but has failed to effect concrete improvement by the time it applies to concurrently operate securities investment trust business, the FSC may deny its application.