Regulations Governing Securities Investment Trust Funds Article 5

A SITE shall have the power to direct utilization of fund assets. The SITE shall implement such utilization itself, and except where the FSC provides otherwise, may not authorize a third party for same. A SITE shall have the power to direct the custodian institution of a fund in the custody, disposal, and receipt and payment of fund assets, and may also inspect and inventory fund assets on an irregular basis.Except where law or regulations otherwise provide, when a SITE uses a fund to invest in market- or OTC-listed securities, it shall authorize a securities broker to undertake the transaction on the centralized securities market or an OTC market on a cash-on-delivery basis.A SITE using a fund to invest in government bonds, corporate bonds, or financial bonds shall do so on a cash-on-delivery basis.A SITE investing assets held by a fund shall register the transaction under the name of the custodian institution's dedicated fund account, provided that where the fund holds foreign securities or securities-related products, the transaction may take place in accordance with agreements between the custodian institution and the foreign trustee custodian institution.