On July 17, 2002, the President of Taiwan promulgated the Securities Investors and Futures Traders Protection Act, which became effective on January 1, 2003. The Securities and Futures Investors Protection Center is an organization set up under the Act to provide consultation on the trading of securities and futures as regulated by related laws and regulations; mediation of disputes arising from the trading of securities and futures; and litigation services on behalf of investors. In addition, the Center manages a protection fund to compensate investors if a securities or commodities firm is unable to do so due to financial difficulties.

The protection fund was valued at NT$1.031 billion when the Center was established. Donors to the fund include the Taiwan Stock Exchange, Taiwan Futures Exchange, GreTai Securities Market, Taiwan Securities Central Depository, the Taiwanese Securities Association, Securities Investment Trust and Consulting Association of ROC, Taipei Futures Association, Fuhwa Securities, Global Securities Finance, Fubon Securities, and Entie Securities. Meanwhile, Article 18 of the Protection Act requires securities firms, futures firms, Taiwan Stock Exchange, Taiwan Futures Exchange, and GreTai Securities Market to contribute each month to the fund.