Article 11
A futures trust enterprise may only offer or make a follow-on offering of a futures trust fund to unspecified persons after submitting an application to the Futures Association with the following documents attached, followed by the Futures Association’s review and forwarding of the application, along with a review opinion, to the competent authority and the competent authority’s subsequent approval:
1. An application form.
2. A futures trust fund review form.
3. An issuance plan (follow-on offerings exempted).
4. A futures trust deed.
5. A prospectus (overseas offerings or follow-on offerings exempted).
6. The board of directors meeting minutes in regard to the offering of the futures trust fund.
7. Documentary proof that the futures trust fund managers meet the qualifications under Article 46 of the Regulations Governing Futures Trust Enterprises.
8. A declaration that none of the circumstances set out in Article 66 apply to the trust supervisor of a fund custodian or a trust enterprise that concurrently operates a futures trust enterprise and that has been approved to keep custody of the futures trust fund assets.
9. An attorney’s opinion stating that discrepancies in content between the futures trust deed and the template are reasonable and that the futures trust deed secures beneficial owners’ rights and interests as fully as the template deed does.
10. A statement of information on the current status of the futures trust fund (for use in follow-on offerings).
11. A declaration that the content of application documents for the offering or follow-on offering of a futures trust fund is complete, accurate, free from error, and in compliance with the most recent laws and regulations.
12. A photocopy of the Central Bank letter of consent shall be attached with applications for offerings of futures trust funds denominated in foreign currencies.
13. When full discretionary authority to carry out futures trades or to invest in futures-related spot instruments has been granted to another professional institution, the documents specified by the competent authority shall be attached.
14. When an overseas professional institution is engaged to provide consultation, the contract signed with that institution shall be attached.
15. Other documents to be submitted in accordance with the regulations of the competent authority.
A futures trust enterprise shall act in accordance with Article 15 when offering futures trust funds, and when offering a futures trust fund to unspecified persons, shall also submit a bank proof of deposit document to the competent authority within five days after the date when payment for the beneficial certificates has been completed, showing that the total proceeds from the certificates meet the minimum required amount for a futures trust fund offering.

Article 17
Given any of the following circumstances, the competent authority may deny approval to the application of a futures trust enterprise for a futures trust fund offering or follow-on offering, provided that subparagraphs 4, 7, 9, and 11 do not apply to a futures trust fund offered to persons meeting certain eligibility requirements:
1. Particulars of the application are in violation of laws or regulations, affecting the offering or follow-on offering of the futures trust fund.
2. The futures trust enterprise’s application for the offering or follow-on offering is made within three months after the date on which it receives a notice from the competent authority for non-approval, voiding, or revocation of such application, or three months after the futures trust enterprise’s own withdrawal of such an application.
3. The futures trust enterprise has already submitted an application to the competent authority and approval has not yet been granted.
4. The application documents of the futures trust enterprise provide factual evidence of inability to carry out the issuing plan.
5. The plan for offering of the futures trust fund has not been written in a proposal and submitted to the board of directors for deliberation and passed by them.
6. The application documents submitted or the information required therein are incomplete and the futures trust enterprise fails to fully supplement the application materials within the deadline set by the competent authority.
7. There is a material instance of a financial report of the futures trust enterprise or of a futures trust fund managed by it not being prepared in accordance with laws and regulations or generally accepted accounting principles.
8. There is a significant deficiency in the design or implementation of the internal control system.
9. A net worth per share was lower than par value in the most recent fiscal year. This provision is not applicable when fewer than two full fiscal years have elapsed since the futures trust enterprise acquired its business license.
10. A period of suspension by the competent authority of the futures trust enterprise’s applications pursuant to the Futures Trading Act has not expired.
11. The basic investment policy and scope of the given futures trust fund offering have not been appropriately differentiated from preexisting futures trust funds, or the fund’s planned objects of trading and investment are clearly inappropriate.
12. There is a material instance of the futures trust enterprise’s violation of futures, securities, or trust laws and regulations, or violation of a futures trust deed.
13. A material instance of error, omission, misrepresentation, or nondisclosure has been discovered within the past year in the application documents for a prior offering or follow-on offering approved by the competent authority.
14. Other circumstances deemed necessary by the competent authority for the protection of the public interest.

Article 20
Prior to accepting a customer’s subscription to a futures trust fund’s beneficial certificates, a futures trust enterprise shall provide a risk disclosure statement to inform the subscriber of the nature and potential risks of the futures trust fund.
The subscriber shall sign or place their personal seal on the risk disclosure statement of the preceding paragraph and add the date. One copy shall be retained by the futures trust enterprise and another copy given to the subscriber as a receipt.
When a futures trust enterprise is providing information on the nature and potential risks of a futures trust fund pursuant to paragraph 1 to a customer who has previously subscribed to a futures trust fund of a similar nature and with similar sources of risk, then the futures trust enterprise may be exempted from the paragraph 1 requirement to provide such information by consent of the customer. It must still provide a risk disclosure statement, however, and retain a copy of the customer’s consent form exempting it from explaining the risks, a copy of the risk disclosure statement signed by the customer, and other relevant documentation.

Article 49
A futures trust enterprise offering a futures trust fund to unspecified persons shall utilize the futures trust fund assets in accordance with these Regulations and the provisions of the futures trust deed, and shall observe the following conditions unless the competent authority provides otherwise:
1. The futures trust enterprise may not invest in non-listed or non-OTC-listed stocks, privately-placed securities, or the beneficial certificates of a futures trust fund offered to persons meeting certain eligibility requirements.
2. The aggregate amount of all margins and premiums collected and paid in relation to the trades under Article 38, paragraph 1, subparagraphs 1 and 2 may not be lower than a certain percentage of the net asset value of the futures trust fund prescribed by the competent authority.
3. The futures trust enterprise may not make loans or provide security. This restriction shall not apply to futures trust enterprises in compliance with Article 25 of the Regulations Governing Futures Trust Enterprises.
4. The futures trust enterprise may not engage in securities margin transactions.
5. The futures trust enterprise may not engage in trading of futures and securities with the various other futures trust funds, securities investment trust funds, mutual trust funds, discretionary investment accounts, or accounts for the trading of securities with self-owned funds under the common management of the futures trust enterprise. This restriction does not apply, however, when such trading results from trades made through centralized exchange markets or through a securities firm’s place of business, and was not produced deliberately.
6. The futures trust enterprise may not invest in securities issued by the futures trust enterprise itself or an interested company, with the exception of fund beneficial certificates, fund shares, and investment units.
7. When the futures trust fund is utilized to invest in any other futures trust fund or securities investment trust fund managed by the same futures trust enterprise, a management fee may not be charged.
8. The futures trust enterprise may not use a futures trust fund to purchase the beneficial certificates of that same fund. This restriction shall not apply in the case of requests by beneficial owners for redemption of beneficial certificates, or when beneficial certificates are redeemed due to the discontinuance of all or some part of the fund.
9. The total amount invested by any fund in the stocks, corporate bonds, or financial bonds of any single listed or OTC-listed company may not exceed ten percent of the net asset value of the fund.
10. The total amount invested by any futures trust fund in the shares of any single listed or OTC-listed company may not exceed ten percent of the total issued and outstanding shares of that company; the total amount invested by all futures trust funds and securities investment trust funds under the common management of a futures trust enterprise in the shares of any single listed or OTC-listed company may not exceed ten percent of the total issued and outstanding shares of that company.
11. The total amount invested by any futures trust fund in an underwriting of shares of any single listed or OTC-listed company may not exceed one percent of the total shares underwritten; the total amount invested in any single underwriting by all futures trust funds and securities investment trust funds under the common management of a futures trust enterprise may not exceed three percent of the total of shares being underwritten.
12. The total amount invested by any futures trust fund in beneficial certificates of securities investment trust funds may not exceed 10 percent of the futures trust fund’s net asset value; the total investment by all of the futures trust funds and securities investment trust funds under the common management of a futures trust enterprise in the beneficial units of any single futures trust fund or securities investment trust fund may not exceed twenty percent of the number of beneficial units already issued by the invested fund.
13. The total amount invested by any futures trust fund in the unsecured corporate bonds of any single company may not exceed ten percent of the unsecured corporate bonds issued by that company.
14. The securities held by a futures trust fund may not be loaned to another person. This restriction shall not apply to loans meeting the conditions of Article 53.
15. Proxy forms for shareholders’ meetings of an issuing company whose shares are purchased by a fund may not be sold or transferred.
16. For the stock transactions and futures transactions engaged in by any futures trust fund, assess the counterparty risks, and adopt measures related to risk measurement, diversification, and control.
17. The total amount that a futures trust fund may invest in a bills finance company’s guaranteed bills may not exceed ten percent of the fund’s net asset value nor exceed 500 million New Taiwan Dollars.
18. The total amount invested by any futures trust fund in the bonds of any single international financial institution approved for domestic issuance by the competent authority may not exceed ten percent of the fund’s net asset value, nor may it exceed ten percent in the total monetary amount of the international financial institution bonds issued within Taiwan by the given international financial institution.
19. The futures trust enterprise may not engage in any improper trading activity and thereby affect the net asset value of a fund under its management.
20. The futures trust enterprise may not engage in any other acts prohibited by the competent authority
When a futures trust enterprise utilizes a futures trust fund offered to unspecified persons for investment in an underwriting of stock, the amount of the investment shall be calculated as an aggregate share number or monetary amount inclusive of the shares of exchange-listed and OTC-listed companies of a similar type already held, and the ceiling on investment ratios shall be based on those aggregate figures. Investments in depository receipts shall be calculated as an aggregate share number or monetary amount inclusive of the shares of the issuer of the depository receipts already held, and the ceiling on investment ratios shall be based on those aggregate figures
“Corporate bonds” as referred to in paragraph 1, subparagraphs 9 and 13 shall include common corporate bonds, convertible corporate bonds, exchangeable corporate bonds, and corporate bonds with warrants.