Regulations Governing the Public Offering of Securities Investment Trust Funds by Securities Investment Trust Enterprises Article 5

In addition to applying the provisions of the preceding article, the FSC may also reject or deny approval to an application (filing) by a SITE for a securities investment trust fund to be invested in foreign securities where any of the circumstances listed below exist:1. In the most recent year, a warning or more serious disposition was imposed under Article 66 of the Securities and Exchange Act, or Article 103 of the SITC Act, provided that this restriction shall not apply where the circumstances of the violation have been specifically corrected and the correction has been recognized by the FSC.2. The applicant (or registrant) lacks the ability to research and invest in foreign securities markets and has not acquired global investment skills by establishing a cooperative relationship with a foreign investment consulting enterprise with an eye to enhancing its investment capabilities.3. In the most recent year, a securities investment trust fund recommendation was made that involved conjecture regarding New Taiwan Dollar exchange rate trends.