Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises Article 26

When a SITE or a SICE conducts discretionary investment business, the customer shall separately enter into a mandate agreement or a trust agreement with the custodian of the discretionary investment assets to govern the handling of matters relating to investments in securities or trading in securities-related products. Such matters include account opening, custody of funds and certificates, deposit of margins and premiums, trade settlement, account servicing, and exercise of equity rights.The provisions of the preceding paragraph do not apply when the customer keeps the discretionary investment assets in its own custody as provided for in Article 11, paragraph 5 or when the SITE or SICE and the customer agree between themselves on the custody of the discretionary investment assets as provided for in Article 11, paragraph 6.The custodian of the discretionary investment assets shall enter into mandate or trust agreements of the type specified in paragraph 1 separately with each individual customer, and except where law, regulation, or the FSC provide otherwise, may not accept any collective mandate or collective trust.Prior to implementing the matters referred to in paragraph 1, the custodian of the discretionary investment assets shall first review the scope and the restrictions set out in the mandate contract.The content and scope of the mandate agreement or trust agreement referred to in paragraph 1 and the related contract templates shall be drafted by SITCA and submitted by letter to the FSC for approval.