Constitutional Court puts the brakes on 'unlimited' powers of TMSF and Wealth Fund

The Constitutional Court (AYM), upon the application of the Republican People's Party (CHP), has ruled that certain powers of the Turkey Wealth Fund and the Savings Deposit Insurance Fund (TMSF) are contrary to the Constitution. This decision resulted in the annulment of certain articles of the laws regulating the powers of these funds.

The AYM's decision limits the broad powers of the TMSF over companies for which it has been appointed as a trustee, as well as the privileges of the Turkey Wealth Fund. The court has granted the government a period of 9 months to bring these regulations into compliance with the Constitution. If a new legal regulation is not enacted within this period, companies affiliated with the Wealth Fund will not be able to remain without oversight and will be subject to the legislation governing State Economic Enterprises (KİT).