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Title	Regulations Governing the Operation of Futures Introducing Broker Business by Securities Firms CH
Date	2025.05.06 ( Amended )

Article Content

Article 19 Upon examining application documents submitted by an issuer and finding that there is any inconsistency with the requirements for registration for TPEx trading, or if any material irregularity is present in the audit conclusions of the Checklist submitted by the lead advisory recommending securities firm, the TPEx shall prepare a clearly expressed statement disapproving the registration of its stock for TPEx trading, and reject the application after receiving signed ratification internally.

Article 1	Upon receiving a letter of approval issued by the TPEx in favor of the registration of its stock for TPEx trading, an issuer shall process the following matters with the TPEx within 2 business days: Pay the TPEx trading fees; and Submit other necessary documents specified by the TPEx.
Article 2	A securities firm that engages in futures introducing broker business ("futures introducing broker") is a futures service enterprise and shall obtain permission from the Financial Supervisory Commission (FSC). Applicants to become futures introducing brokers shall be limited to those engaging in securities brokerage business. A securities firm concurrently engaging in futures brokerage business shall not apply to conduct futures introducing broker business.
Article 3	When a domestic issuer issues additional new shares of common stock and allocates a certain ratio of the shares for public sale to outside parties, with the exception of the public sale conducted for an initial TPEx (or TWSE) listing, the domestic issuer shall apply to the TPEx for issuance of an opinion letter by submitting an Application for Opinion on TPEx Trading of New Shares of Emerging Stock Issued for Capital Increase (Attachment 4) and relevant documents to the TPEx, and, after effective registration with the competent authority, the new shares will be traded on the TPEx from the date on which they are delivered to shareholders. If there is no allocation of a certain ratio of the new shares for public sale to outside parties, after effective registration with the competent authority, the new shares will be traded on the TPEx from the date on which they are delivered to shareholders. The domestic issuer shall, 2 business days before the new shares are traded on the TPEx, submit a filing and upload relevant documents on the TPEx-designated Internet information reporting system and pay the TPEx trading fee. A domestic issuer shall submit a filing and upload relevant documents on the TPEx-designated Internet information reporting system for any subscription of or conversion into shares of common stock of a type already traded on the TPEx through the exercise of any preferred shares with warrants, convertible preferred shares, corporate bonds with warrants, or convertible corporate bonds offered and issued by it. The filed documents in the preceding two paragraphs, after confirmed by the TPEx, shall be deemed a part of the Contract for TPEx Trading of Emerging Stock.
Article 4	A futures introducing broker shall engage in the solicitation of futures business in the name of its mandating futures commission merchant, and the provisions of Article 7 and Article 8 of the Regulations Governing Futures Commission Merchants shall apply mutatis mutandis.
Article 5	When a futures introducing broker accepts the account opening of a futures trader on behalf of a futures commission merchant, the provisions of Article 25, Article 28, and paragraph 2 of Article 30 of the Regulations Governing Futures Commission Merchants shall apply mutatis mutandis. In addition, it shall - conduct credit investigation on futures traders; and prior to accepting account opening of a futures trader, provide the brokerage contract, risk disclosure statement, documents with explanations on the rights and obligations between the futures introducing broker and the futures trader, and other account-opening information etc., assign registered qualified associated person to explain in detail to the futures trader the relevant rights, obligations, and risks, and acquire a statement from the futures trader that he/she has been fully advised of, read, and understood the same before a brokerage contract can be entered; the relevant information shall be delivered to the futures trader to be signed or sealed and dated for custody and submitted to the mandating futures commission merchant for confirmation and for its signature or seal. When a mandating futures commission merchant confirms and signs or seals the relevant information regarding account opening of a futures trader pursuant to subparagraph 2 of the preceding paragraph, it shall follow the relevant futures laws and regulations. The TPEx may disqualify a recommending securities firm in the event that any of the following circumstances occur: It loses any qualification as a securities underwriter, a securities broker, or a securities dealer. For reasons relating to underwriting business, it is subject to a disposition or sanction of business suspension or of greater severity by the competent authority under the Securities and Exchange Act or related rules, or by the Taiwan Stock Exchange Corporation under its Operating Rules or related rules, or by the TPEx under its Trading Rules or related rules. Its regulatory capital adequacy ratio has failed to reach 150 percent for 3 consecutive months. Any of the circumstances enumerated in Article 10 of these Rules.
Article 6	When a futures introducing broker accepts a futures trading order from a futures trader and delivers the same to the mandating futures commission merchant for execution, the provisions of Article 30, and Article 32 through Article 36 of the Regulations Governing Futures Commission Merchants shall apply mutatis mutandis.
Article 17	The brokerage contract entered into by a futures introducing broker with a futures trader on behalf of a mandating futures commission merchant shall contain a provision expressly setting forth that the futures introducing broker shall be jointly and severally liable with the mandating futures commission merchant for the damages arising out of its execution of the businesses under paragraph 1 of Article 3 herein. The futures introducing broker shall confirm the provision in the brokerage contract referred to in the preceding paragraph and affix its signature or seal thereon.
Article 8	The lead advisory recommending securities firm shall, by the end of each month during the period of the issuer's Emerging Stock registration, file the issuer's Short-Form Checklist through the TPEx-designated Internet information reporting system, and submit it along with the relevant materials to the TPEx in writing. However, if it is assessed that there has not in the current month been any material event listed in the Short-Form Checklist, it is merely required to file the findings of its monthly examination through the aforesaid reporting system, and is not required to submit the Short-Form Checklist through the reporting system and in writing. Before the issuer's TPEx listing application, the lead advisory recommending securities firm shall file at least two months of the Financial or Operational Material Event Checklist (Long-Form) for the issuer (the "Long-Form Checklist; see Table 1-1), and shall on an ongoing basis submit the filing by the end of each month through the TPEx-designated Internet information reporting system, and submit it along with the relevant materials to the TPEx in writing, and shall continue to do so until the issuer is listed on the TPEx. Beginning from the date of the issuer's TPEx listing application, if the lead advisory recommending securities firm assesses that there has not in the current month been any material event listed in the Long-Form Checklist, it is merely required to file the findings of its monthly examination through the aforesaid reporting system, and is not required to submit the Long-Form Checklist through the reporting system and in writing. Beginning from the time the lead advisory recommending securities firm files the Long-Form Checklist pursuant to the preceding paragraph, the provisions of paragraph 1 shall no longer apply. The lead advisory recommending securities firm shall immediately file with the TPEx through the TPEx-designated Internet information reporting system upon the occurrence of any material event listed in the Checklist, and furthermore within 5 days from the filing date shall complete its audit and report its audit findings to the TPEx through the TPEx-designated Internet information reporting system and by formal letter with the relevant materials attached. When preparing a Checklist pursuant to these Rules, the lead advisory recommending securities firm shall, based on the listed check items and required assessment period, obtain relevant materials to carry out audit procedures, and shall truthfully and completely fill in the results of the audit, compile them into bound volumes together with the relevant working papers, and safekeep them. The TPEx may conduct sampling inspections of these materials from time to time.
Article 9	A futures introducing broker shall adopt a system of internal controls in accordance with the FSC's Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets and the standards and regulations governing internal control systems at securities firms operating as futures introducing brokers as provided for by the futures exchange and other institutions related to futures trading. A futures introducing broker shall operate in accordance with laws and regulations, its articles of incorporation, and the internal control systems referred to in the preceding paragraph. The internal control system adopted in accordance with paragraph 1 and any amendments thereto shall be reported to the board of directors for their approval, and a copy retained for inspection; when the FSC or other futures-related institution issues notification for an amendment to the internal control system, the amendments shall be made within the prescribed time limit.
Article 20
Article 9-2	Any securities firm that has signed an advisory contract with the issuer during the period of the issuer's Emerging Stock registration is also required to serve as a recommending securities firm of the issuer. In the event of any change in the advisory status of an issuer's advisory recommending securities firm, the advisory recommending securities firm in which the change occurs shall report the matter to the TPEx through the TPEx-designated Internet information reporting system. In the event of any change to the lead advisory recommending securities firm, the newly appointed lead advisory recommending securities firm shall hold at least 1 percent of the issuer's total TPEx traded shares as of the time of the change; provided that if 1 percent of the total TPEx traded shares as of the time of the change exceed 500,000 shares, it shall hold at least 500,000 shares. In the event of any change to the lead advisory recommending securities firm, the former lead advisory recommending securities firm shall report to the TPEx by letter, explaining the reason for terminating its capacity as lead advisory recommending securities firm and its material findings during the advisement period. In the event of any change to the lead advisory recommending securities firm, the issuer shall undergo advisement from the newly appointed lead advisory recommending securities firm, and may not submit its application for TPEx listing (or TWSE listing) until a further 6 months or more of TPEx trading as an Emerging Stock has elapsed.

Article 10	A securities firm applying for operation of futures introducing broker business shall meet the following requirements: has not received a warning from the FSC in accordance with subparagraph 1 of Article 66 of the Securities & Exchange Act in the last 3 months, has not been sanctioned by the FSC in accordance with subparagraph 2 of Article 66 of the Securities & Exchange Act in the last 6 months, under which the securities firm was ordered to discharge its director, supervisor, or manager; has not been sanctioned by the FSC by suspension of permission for business in whole or in part in accordance with subparagraph 3 of Article 66 of the Securities & Exchange Act in the last 1 year; has not been sanctioned by the FSC in accordance with the Securities & Exchange Act by voidance of permission for any part of its business in the last 2 years; has not been sanctioned by the stock exchange and/or over-the-counter securities exchange in accordance with their respective rules by suspension or restriction of trading in the last 1 year; other requirements as prescribed by the FSC. If a securities firm fails to meet any of the requirements set forth in subparagraphs 1 to 5 of the preceding paragraph, but has shown concrete improvement in the circumstances, and the FSC has recognized the improvement, the securities firm may be exempted from the relevant requirement. Where an issuer suspends amendment of entries in the shareholders register in accordance with Article 165 of the Company Act or with the laws and regulations of the country of registration, it shall make a public disclosure on the TPEx-designated Internet information reporting system, 12 business days prior to the date for suspension of share transfer for the shareholders meeting. A foreign issuer shall call a regular shareholders meeting within 6 months after the end of the accounting year. All shareholders shall be notified by 30 days before the convening of a regular shareholders meeting. If a foreign issuer, however, under the laws and regulations of the country of its registration, is unable to deliver the notice of the convening of the regular shareholders meeting by 30 days before the meeting, it shall deliver the notice to shareholders, at the latest, by 21 days before the meeting. Where necessary in special circumstances, an issuer may, after publicly announcing the date and agenda for the shareholders meeting within the period provided in paragraph 1, then follow up, at least 40 days prior to the date of the shareholders meeting, with a supplementary public disclosure on the TPEx-designated Internet information reporting system of the amount of dividends and bonuses to be distributed or rights to be allocated. If a foreign issuer, however, under the laws and regulations of the country of its registration, is unable to deliver the notice of the convening of the regular shareholders meeting by 30 days before the meeting, it shall make the aforesaid supplementary public disclosure by 10 days before the latest date for delivery of the shareholders meeting notice under TPEx rules. When an issuer decides the record date for distributing dividends, bonus, or other rights, it shall make a public disclosure on the TPEx-designated Internet information reporting system at least 12 business days prior to the date for suspension of amendment of entries in the shareholders register. If there is subsequently any change in abovementioned publicly disclosed information of an issuer, or the public disclosure is not made by the issuer within the time period specified by the TPEx, then the issuer shall bear full liability for any resultant trade dispute or damage suffered by a party to a trade.
Article 16	For operating futures introducing broker business, a securities firm shall submit the following documents to the FSC to apply for permission. However, a financial institution concurrently engaging in securities brokerage business shall also submit the approval documents issued by the competent authority in charge of said enterprise: Application; Articles of Incorporation or equivalent document; Business plan, stating principles of business operation, division of work of internal organization, personnel recruitment and training, and general conditions of business floor and equipment; Minutes of board of directors or governors meeting or shareholders meeting; Mandate agreement entered into with the mandating futures commission merchant; Supporting documents that the mandating futures commission merchant engaging in domestic futures brokerage business is a clearing member of domestic futures clearing house; Latest financial reports audited and attested or reviewed by certified public accountants; Supporting documents that the applicant meets the requirement in subparagraph 4 of the preceding Article; A case checklist; and Other documents as required by the FSC.
Article 12	Within 6 months from the date of the FSC's approval, the securities firm applying to operate futures introducing broker business shall submit the following document to the FSC for issuance of a permit license: Application; Photocopy of the securities firm's business license; The internal control system for operation of futures introducing broker business; List of managers and associated persons handling futures introducing broker business and certificates of qualification of associated persons; A declaration that the managers and associated persons handling futures introducing broker business do not have the conditions stated in Article 4 of the Standards Governing the Establishment of Futures Commission Merchants; Supporting documents that the applicant has deposited the operation bond pursuant to Article 17 herein; Supporting documents that the applicant is equipped with transmission facilities required for operation of futures introducing broker business; Supporting documents that the mandating futures commission merchant agrees to deposit additional funds to the clearing and settlement fund pursuant to paragraph 2 of Article 8 herein; A letter of consent stating that the applicant agrees to the examination of its finance, business, and other necessary matters by the FSC, the futures exchange, or FSC-designated institution, and that the applicant agrees to provide explanations and relevant documents in connection with the examination by the above-mentioned institutions; and Evidentiary documents attesting to conformance with the provisions of Article 10, subparagraph 5. Evidentiary documents attesting to conformance with the provisions of Article 9-1. A case checklist. Other documents as required by the FSC. In the event that a securities firm fails to apply for issuance of a permit license within the time limit referred to in the preceding paragraph, the permission for its operation of futures introducing broker business shall be revoked; provided that if the securities firm has justified reasons, it may, prior to the expiration of the said time limit, apply for extension to the FSC. The extension period shall not be more than 6 months, and only one extension is allowed.
Article 13	An issuer, throughout the ESM registration period, shall appoint and continuously maintain independent directors and a remuneration committee satisfying the conditions for application for registration under these Rules, and a majority of the members of the remuneration committee shall be independent directors. If any independent director member of the remuneration committee is dismissed or departs from office, with the result that less than a majority of the members are independent directors, the board of directors shall appoint another independent director who is not a members to serve as such. However, if there is no other independent director who is not a members, the issuer, before it has held a by-election for independent director in accordance with Article 14-2, paragraph 6 of the Securities and Exchange Act, may first appoint a non-independent director to serve as a remuneration committee member until a newly elected independent director has been appointed by the board of directors to serve as a remuneration committee members.
Article 16-1	For a securities firm that applies for operation of futures introducing broker business by its branch office, the head office shall also engage in futures introducing broker business, and such firm shall submit the following documents to apply with the FSC for permission. However, a financial institution that concurrently engages in securities brokerage business shall also submit the approval documents issued by the competent authority in charge of said enterprise: Application; Business plan, stating principles of business operation for the futures introducing broker business of its branch office, internal organization and division of labor, personnel recruitment and training, and overview of business floor and equipment; Minutes of board of directors or governors meeting or shareholders meeting; The internal control system for operation of futures introducing broker business. However, exemption from submission shall be granted when the internal control system is the same as was attached with the previous application for futures introducing broker operations by a branch office.; Latest financial reports audited and attested or reviewed by certified public accountants; Supporting documents that the applicant meets the requirement in subparagraph 4 of Article 10; A case checklist; and Other documents as required by the FSC.
Article 15	A securities firm that applies for operation of futures introducing broker business by its branch office shall submit the following documents to the FSC to apply for issuance of a permit license within 6 months after the date of the FSC approval: Application; A photocopy of the business license of the securities firm's branch office. List of managers and associated persons handling futures introducing broker business and certificates of qualification of associated persons; A declaration that the managers and associated persons handling futures introducing broker business do not have the conditions stated in Article 4 of the Standards Governing the Establishment of Futures Commission Merchants (Format as per Attachment 3); Supporting documents that the applicant has deposited an operation bond pursuant to Article 17 herein; Supporting documents that the applicant is equipped with transmission facilities required for operation of futures introducing broker business; Supporting documents that the mandating futures commission merchant agrees to deposit additional funds to the clearing and settlement fund pursuant to paragraph 2 of Article 8 herein; A letter of consent stating that the applicant agrees to the examination of its finance, business, and other necessary matters by the FSC, the futures exchange, or FSC-designated institution, and that the applicant agrees to provide explanations and relevant documents in connection with the examination by the above-mentioned institutions; and Evidentiary documents attesting to conformance with the provisions of subparagraph 5, Article 10. Evidentiary documents attesting to conformance with the provisions of Article 9-1. A case checklist. Other documents as required by the FSC. In the event that a securities firm fails to apply for issuance of a permit license within the time limit referred to in the preceding paragraph, the permission for its branch office's operation of futures introducing broker business shall be revoked; provided that if the securities firm has justified reasons, it may, prior to the expiration of the said time limit, apply for extension to the FSC. The extension period shall not be more than 6 months, and only one extension is allowed.
Article 24	In the event that an applicant for operation of futures introducing broker business under Article 10 to Article 15 herein has any of the following conditions, the FSC may return its application: where the application documents are incomplete or the particulars to be filled in are inadequate and the applicant fails to make rectification despite a notice of rectification within a specified time limit; where there is false statement in the application documents; or where the applicant violates the restrictions or prohibition of the Act and/or these Regulations.
Article 16-1	A futures introducing broker shall hang its business license in a conspicuous place at its place of business.

Chapter III Supervision and Management

Section I Finance and Business

Article 17	Upon FSC approval for operation of futures introducing broker business, a securities firm shall, after carrying out amendment of its business registration, open a special account with the financial institution designated by the FSC for depositing the operation bond. This rule shall apply to its branch office upon FSC approval for operation of futures introducing broker business. The operation bond to be deposited by a futures introducing broker under the preceding paragraph shall be NT$10 million; the operation bond for each branch office is NT$5 million. The financial institution referred to in paragraph 1 shall be a bank that is approved by the FSC to operate custodial business, and meets the conditions prescribed by the FSC. When the futures introducing broker is a financial institution that concurrently operates futures brokerage business, its operation bond shall be deposited with another financial institution. The operation bond referred to in paragraph 1 above shall be paid in cash or by government bond or financial bond. The operation bond deposited by a securities firm operating futures introducing broker business shall not be separately deposited in different places, and the condition of reporting of loss or contract termination shall not be allowed for the operation bond. The deposited operation bond and certificate of depository thereof shall not be used as securities, and unless approval has been granted by the FSC, the deposited operation bond shall not be withdrawn or replaced.
Article 18	A futures introducing broker shall, prior to the 10th day of each month, submit to the FSC, the futures exchange, or FSC-designated institution a monthly statement of business volume of the previous month.
Article 19	A futures introducing broker shall enter into a mandate agreement with the mandating futures commission merchant, which shall contain the following particulars: Names of the parties to the agreement; Either party shall notify the other upon receiving the complaint of any futures traders; Provisions on commission and other relevant fees; Scope of agency business of the futures introducing broker and the procedures for its execution; The scope of information and services to be provided by the parties to the agreement; Neither party shall refuse the request of the other party for provision of necessary business and finance information; Neither party to the agreement shall improperly use the information obtained from the other party; When the futures introducing broker is unable to perform the business, the mandating futures commission merchant shall handle it directly; The method to deal with the damage caused by reasons attributable to either party to the agreement; The method to deal with the damage caused by reasons not attributable to either party to the agreement; If the futures introducing broker is responsible for the damages caused to a futures trader or any third person by its willful act or negligence in performing the businesses under paragraph 1 of Article 3 herein, the mandating futures commission merchant shall be held jointly liable as if the damage is caused by its own willful act or negligence; Settlement of trading disputes; Change of provisions of agreement; Rescission or termination of the agreement; Effective date of Agreement; Other necessary statements in connection with the parties' rights and obligations; and Other matters required to be stated by the FSC. The mandating futures commission merchant shall not enter into an agreement with the futures introducing broker to waive the responsibilities referred to in subparagraph 11 of the preceding paragraph in advance. The change or rescission of the mandate agreement referred to in paragraph 1 above shall be reported to FSC for recordation within two days from and including the date of change or recession. Chapter I General Provisions
Article 20	A mandating futures commission merchant shall not, by a mandate agreement or in any other manner, agree with a futures introducing broker to allow the futures introducing broker to execute any business on its behalf other than those stated under paragraph 1 of Article 3 herein.
Article 21	A futures introducing broker shall not open an account with a futures commission merchant to engage in futures trading on account of its own interests; provided that this provision shall not apply if a securities firm has applied for concurrent operation of futures proprietary business pursuant to the relevant provisions of the Standards Governing the Establishment of Futures Commission Merchants.
Article 22	Chapter III Recommending Securities Firms
Article 23
Article 24	An advisory recommending securities firms shall be a qualified securities underwriter, securities broker, and securities dealer and shall meet the following requirements: Be a registered member of the Taiwan Securities Association. Meet the requirements set forth in Article 23 of the Regulations Governing Securities Firms; Have had a regulatory capital adequacy ratio under Article 59 of the Regulations Governing Securities Firms of not less than 150 percent in each of the past 6 months; and Currently be a securities firm that has signed an advisory contract with the issuer; furthermore, the lead recommending securities firm shall be the lead advisory securities firm. The lead advisory recommending securities firm referred to in the preceding paragraph shall meet the following requirements: Have served within the past 3 years as the lead securities firm in a total of at least three cases of applications for initial TWSE listing or TPEx listing of stock, or new share issue for cash capital increase, or issue of convertible corporate bonds, where the applications were approved by the competent authority and the shares are already listed and traded; or its underwriting department head and at least three members of its associated persons handling underwriting business possess the aforementioned case-handling experience. Have 10 or more persons who are qualified registered associated persons for underwriting business.
Article 25	FSC, futures exchange, or FSC-designated institution may examine the business, finance, and other necessary matters of a futures introducing broker. A futures introducing broker shall provide explanations and relevant documents in connection with the examination referred to in the preceding paragraph.

Section II Personnel

Article 26	The term "associated person(s)" referred to in these Regulations shall mean the person(s) engaging in the following businesses on behalf of the futures introducing broker: the businesses under paragraph 1 of Article 3 herein; internal auditing of a futures introducing broker; self auditing of a futures introducing broker. A person dealing with the businesses under subparagraph 1 of the preceding paragraph shall not concurrently handle the businesses under subparagraph 2, and vice versa. The associated person(s) referred to in paragraph 1 above shall be qualified futures associated person(s).
Article 27
Article 28	After an issuer's stock has been traded on the TPEx for 1 full month, a securities firm may apply to the TPEx through the TPEx-designated Internet information reporting system to become a recommending securities firm for such stock, provided that such securities firm shall hold not less than 30,000 shares of the issuer. The securities firm under the preceding paragraph shall be a qualified securities underwriter, securities broker, and securities dealer and shall meet the requirements set out in Article 9, paragraph 1, subparagraphs 1 to 3. A securities firm applying to join as a recommending securities firm after the Emerging Stock has begun to be traded on the TPEx pursuant to paragraph 1 may not resign within 6 months from the date of approval by the TPEx. To resign from serving as a recommending securities firm, a firm shall submit an application to the TPEx through the TPEx-designated Internet information reporting system; the recommending securities firm will lose its status as a recommending securities firm from the date of approval of its resignation specified in the response letter from the TPEx.
Article 29	The responsible person, manager, or associated person of a futures introducing broker engaging in or directly dealing with the duties referred to in paragraph 1 of Article 3 herein shall faithfully carry out duties in accordance with the principles of good faith and trustworthiness. In addition to conduct prohibited under Article 16 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants, the futures introducing broker and associated persons under the preceding paragraph may not engage in the following conduct: accept any funds from a futures trader; fail to handle futures introducing broker business in compliance with the order placed by or conditions set by a futures trader; accept any discretionary trading authorization of a futures trader; disclose any information of a futures trader; or engage in other acts in violation of laws and regulations governing futures trading or prohibited by the FSC. Other employees that are not associated persons likewise are prohibited from violating the provisions of the preceding two paragraphs, and additionally are prohibited from carrying out, or acting as a deputy for, the duties of an associated person.
Article 30	Responsible persons and employee of a futures introducing broker may open an account for trading with the mandating futures commission merchant only, and shall not open the said account in the name of another person. If an account to be opened for a person referred to in the preceding paragraph is to be opened through a futures introducing broker engaged by the future commission merchant, it shall be done by the futures introducing broker to which the person belongs. Account opening, handling of orders, and related matters, for persons referred to in paragraph 1 shall be handled by the futures introducing broker and the mandating futures commission merchant in accordance with the regulations of the FSC or its designated institution.
Article 10	Paragraph 1 of Article 2, Article 4, Article 5, Article 5-1, Articles 9 through 15, and Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants shall mutatis mutandis apply to futures introducing brokers.

Article 18 Where the documents submitted by an issuer are found incomplete, the TPEx personnel in charge shall specify the omissions and request the applicant company to furnish the relevant documents within a specified time limit. Where the issuer furnishes the documents within the time limit specified by the TPEx, the personnel in charge shall reprocess the application following the acceptance and processing procedure specified in these Rules. Where the issuer fails to furnish the documents within the time limit, the personnel in charge shall prepare a clearly expressed statement disapproving the registration of its stock for TPEx trading and reject the application after receiving ratification from the authorized personnel within the TPEx.

Article 32	When a securities firm applies to the FSC for issuance of a permit license pursuant to Article 12 and Article 15 herein, it shall pay a license fee as follows: Where the business is to be operated by the head office, a license fee of NT$5,000 shall be paid; and Where the business is to be operated by a branch office, a license fee of NT$3,000 shall be paid for each branch office. When a futures introducing broker applies to the FSC for replacement of the permit license, it shall pay a license fee of NT$1,500. No license fee shall be paid if the permit license is replaced as a result of adjustment of administration zone or change of street address due to adjustment of door plate.
Article 32-1
Article 33	The TPEx may, in accordance with regulations or based on legitimate reasons, notify an issuer, its lead advisory recommending securities firm, or its attesting CPA to provide information in connection with the issuer or to explain the information or assessment opinion on the issuer by a certain deadline. The issuer, its lead advisory recommending securities firm, or its attesting CPA shall bear sole liability for any misrepresentation or falsehood contained in any information or assessment opinion that it provides or explains to the TPEx under the preceding paragraph. Where an issuer lacks a lead advisory recommending securities firm, the co-advisory recommending securities firm(s) of the issuer shall be subject mutatis mutandis to the provisions of the preceding two paragraphs that are otherwise applicable to its lead advisory recommending security firm. Any procedures governing the TPEx's supervision over issuers' financial and business matters, auditing of their internal control systems, and other relevant matters shall be separately prescribed by the TPEx.