Regulations Governing Financial Technology Innovative Experimentation Article 13

The applicant should allocate a reasonable number of staff and resources based on the scope, duration and scale of the innovative experimentation, and establish and carry out participant protection measures and prepare an appropriate compensation mechanism. The compensation mechanism includes declaring trust or obtaining banker's guarantee.The "declaring trust" mentioned in the preceding paragraph refers to signing a trust agreement with the bank where a dedicated deposit account is opened as a trust account.The "obtaining banker's guarantee" mentioned in Paragraph 1 hereof refers to signing a guarantee agreement on the performance of appropriate compensation, by which the bank undertakes the performance obligation of the applicant to participants.The effective period of the trust or banker's guarantee should cover at least the entire innovative experimentation period plus another six (6) months, and before the innovative experimentation starts, the trust agreement shall be signed with sufficient amount of compensation deposited into the trust account or a banker's guarantee shall be obtained.Where the protection measures or compensation mechanism mentioned in Paragraph 1 hereof are deemed inadequate by the competent authority in the review, the competent authority may require the applicant to add more protection measures or raise the compensation.