Regulations Governing Internal Operating Systems and Procedures for Banks Conducting Financial Derivatives Business Article 26

When a bank provides financial derivatives transaction services to an individual retail customer, the bank shall, before completing the trade, provide the customer with at least product prospectus and risk disclosure statement, and assign a staff to explain the product to the customer and ask the customer give a confirmation that he/she understands the materials provided.When a bank provides financial derivatives transaction services to a juristic person retail customer, the bank shall establish an internal operating procedure for the delivery of product prospectus and risk disclosure statement to the customer and conduct the business accordingly.After completing a financial derivative transaction with a retail customer, a bank shall provide the customer with a trade confirmation (which should also show the confirmation number).The risk disclosure statement mentioned in Paragraphs 1 and 2 hereof should disclose all risks associated with a product and show the maximum risk or loss that may incur in bold black typeface.