Regulations Governing the Public Offering of Securities Investment Trust Funds by Securities Investment Trust Enterprises Article 12-1

If any of the following circumstances exists, the filing-for-approval system shall be employed for any public offering of a securities investment trust fund by the SITE, unless there is a need to do otherwise to deal with market conditions or protect the public interest and the FSC has otherwise approved:1. The most recently established securities investment trust fund for which 6 months have already elapsed from the first day of the redemption period has, during that 6-month period, undergone a reduction by 50 percent or more of its average total number of issued units compared to the date of its establishment.2. The public offering is the first one made by the SITE after its effective registration has been suspended twice or more within 1 year by the FSC.3. The public offering is the first one made by a SITE after it has been issued a warning or more serious disposition under Article 103 of the SITC Act or the design or operation of its internal control system has been found materially deficient, and the circumstances of the violation have been specifically corrected and the correction has been recognized by the FSC.4. The public offering is one for which the FSC requires that a statement or letter issued by the foreign competent authority or other institution be obtained.The funds referred to in subparagraph 1 of the preceding paragraph means those established after the issuance of the 21 October 2014 amendments to these Regulations.