According to the prominent articles of the proposal accepted in the Grand National Assembly of Turkey (TBMM) General Assembly, the provisions of the proposal will not establish a general or continuous liquidation and liability regime for other investment funds, except for those specified. On the other hand, certain definitions and abbreviations within the scope of the regulation will also be enacted.
According to the provision of the regulation titled "General principles regarding the execution of liquidation and determination of fund share ownership," the liquidation of funds will be carried out by the organizations tasked with liquidation under the supervision and audit of the Capital Markets Board (SPK). The Board will be authorized to determine the stages of the liquidation process, the identification and liquidation of fund assets, valuation principles, the method of determining fund share ownership, interim and final payments, the order of distribution, and other procedures and principles regarding liquidation.
Organizations tasked with liquidation will exercise the necessary care to obtain the highest possible economic value, considering investor interests, market conditions of the relevant assets, fund portfolio structures, the protection of fund assets, and the common interests of fund shareholders. In cases where the Board determines that the price formed on the stock exchange does not reflect the true value of the relevant asset or will delay the liquidation, the Board may decide to apply a temporarily different price margin in liquidation transactions using methods such as buybacks, the right to sell to a controlling shareholder, wholesale sales, and special transaction notifications, and to use other methods included in capital market legislation and Stock Exchange legislation. Upon the request of the organizations tasked with liquidation, the Board may approve the sale of relevant assets outside the Stock Exchange. In terms of sales transactions to be made within this scope, the restrictions contained in the Board's regulations regarding investment funds will not apply. The Board may decide that investors who will purchase assets through sales to be made on or off the Stock Exchange will not be able to sell the assets subject to this transaction on the Stock Exchange for a certain period and will not be able to engage in any transaction that would result in these assets being sold on the Stock Exchange.
TO BE DETERMINED ON A FUND AND ACCOUNT BASIS
Amounts collected during the liquidation process will be included in the liquidation assets after deducting mandatory expenses incurred for the management and liquidation of the fund. Amounts collected after the completion of the liquidation will be transferred to the recovery account in a way that does not lead to duplicate payments.
The Central Securities Depository (MKK), Takasbank, Borsa İstanbul AŞ (Borsa), the Banks Association of Turkey, organizations tasked with liquidation, portfolio management companies, portfolio custodian institutions, and other capital market institutions and public institutions and organizations will be obliged to provide the necessary information and documents for the implementation of this regulation to the Board, the Investor Compensation Center (YTM), and/or the Savings Deposit Insurance Fund (TMSF) upon their request without delay. These institutions and organizations will not be able to refrain from providing information based on provisions regarding confidentiality and secrecy contained in their special legislation. Fund share ownership will be determined on a fund and account basis by the organizations tasked with liquidation by ensuring reconciliation with MKK records.
It is intended to determine that participation share owners who have participation shares in the TEFAS Transaction Blockage Account are also within the scope of liquidation in the capacity of fund shareholders, as instructions that were transmitted to the Turkey Electronic Fund Trading Platform (TEFAS) on behalf of participation share owners but could not be executed due to the default of the relevant fund or failure to announce the price have become invalid. Accordingly, those whose participation shares have been blocked regarding instructions that were transmitted to TEFAS on or before September 17, 2026, regarding the funds subject to liquidation, but could not be executed due to the default of the relevant fund and/or the failure to announce the participation share price, will be subject to the liquidation provisions in the regulation in the capacity of fund shareholders.
In the event that the acts regulated in the provisions of the Capital Markets Law titled "market disruptive actions," "insider trading," and "market fraud" are committed by the funds decided to be liquidated by the Board's decisions dated September 17, 2026, or if there is acting in concert with these funds, or if they are committed with the participation of the funds, no payment will be made from the liquidation and recovery account of the funds decided to be liquidated in accordance with the aforementioned decisions of the Board to the persons and institutions determined by the Board to have committed these acts or to have acted in concert with these funds.
MAXIMUM 1 MILLION TURKISH LIRA INTERIM PAYMENT
According to the provision of the proposal titled "Net investment amount, interim payment, and final payment," if the distributable cash obtained as a result of the liquidation of fund assets is not sufficient to cover the total amount calculated over the fund unit share price valid as of the end of the day prior to the liquidation decision and the number of participation shares subject to payment, provided that the provision regarding acts regulated in the provisions of the Capital Markets Law titled "market disruptive actions," "insider trading," and "market fraud" is reserved, the net investment amount of the fund shareholder to be taken into account in payments to be made from the liquidation balance will be calculated by the MKK by applying the pro-rata method to the arithmetic average of the change rates in the consumer price index and domestic producer price index announced by the Turkish Statistical Institute until the liquidation date for each cash inflow and outflow actually made by the fund shareholder to the fund, and in case the inflow amount is more than the outflow amount, by deducting the amount of each cash outflow made from the fund to the fund shareholder on a first-in, first-out basis.
In order to be deducted from the payments that fund shareholders will receive from the liquidation balance, provided that it does not exceed the portion of the net investment amount calculated according to the relevant provision found without applying indexing, an interim payment of this amount for investors with a net investment amount of less than 1 million Turkish liras, and a maximum of 1 million Turkish liras for investors with 1 million Turkish liras or more, may be made in funds determined by the Board. The interim payment amount to be made to fund shareholders, excluding money market funds, cannot exceed the total value of the fund participation shares in the relevant fund shareholder's account, calculated as of the end of the day prior to the date the interim payment amount is calculated. The fund's previous day-end price will be the price calculated by Takasbank with the valuation made for the relevant day, by obtaining the necessary information from the organizations tasked with liquidation.
News Source: 12punto
