Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises Article 17-1

When a SITE or a SICE using discretionary investment assets for overseas investment receives approval from the customer to authorize either a foreign investment consulting services company or a member of its own group that provides central market trading services to place a trading order on the customer's behalf with a foreign securities firm, futures commission merchant, or any other trading counterparty, the SITE or SICE shall adopt risk monitoring and management measures for such transactions as a part of its internal control system, including the standards by which the company providing foreign investment consulting services is selected, and shall submit the measures to the board of directors for approval.The term "member of its own group" in the preceding paragraph shall mean a holding company to which the SITE or SICE belongs and whose shareholdings in the SITE or SICE are in excess of 50 percent, or a subsidiary in which the SITE or SICE has shareholdings in excess of 50 percent, or a subsidiary under the same holding company in which the holding company's shareholdings exceed 50 percent.