Details of the draft bill prepared for the 131 investment funds slated for liquidation have been revealed. The regulation aims to recover assets deemed to have been unlawfully removed from the funds currently in the liquidation process, to carry out collections from those responsible, and to distribute the obtained resources to fund shareholders.
According to Bloomberg HT, the draft does not establish a general liquidation regime covering all investment funds in the capital market. The regulation is intended to apply only to funds placed under liquidation by the Capital Markets Board (SPK) decisions dated September 17, 2026.
Liquidation procedures are planned to be carried out through banks and other institutions appointed under the supervision and audit of the SPK. Beneficiaries will be determined by comparing records from the Central Securities Depository (MKK), Takasbank, TEFAS, portfolio custodians, and distribution channels on a fund and account basis.
The draft also stipulates that no payments will be made from liquidation and recovery accounts to individuals and institutions identified by the SPK as having engaged in transactions contrary to capital market legislation, involved in manipulation or market fraud, or acted in concert with such persons.
PAYMENTS AND THE RECOVERY PROCESS
In cases where fund assets are insufficient to cover investor claims, the “net investment amount” to be used as the basis for payment will be calculated by the MKK. Cash inflows and outflows to the funds will be indexed based on the arithmetic average of the consumer price index and the domestic producer price index of the Turkish Statistical Institute (TÜİK) and will be netted using the “first-in, first-out” (FIFO) method.
The draft also provides for interim payments to be made to investors from the liquidation assets. Accordingly, investors with a net investment amount of less than 1 million TL will be paid the full calculated net amount, while those with 1 million TL or more will be paid a maximum of 1 million TL. Indexing will not be applied to interim payments.
Excluding money market funds, the payment to be made cannot exceed the total value of the participation shares held by the investor on the date the liquidation decision was made for the fund. If the distributable cash is insufficient, the available amount will be distributed proportionally among the beneficiaries.
The regulation also introduces a voluntary return option for individuals determined to have gained unfair profits from values created in a manner contrary to reality. It is planned that these individuals will be able to deposit their earnings that exceed the benchmark return into accounts to be announced.
Values transferred from fund assets to related persons or companies through transactions that are contrary to legislation, without consideration, or collusive will be considered as having been unlawfully removed from the fund. The relevant portfolio management company will be primarily responsible for the loss or the remaining liquidation deficit arising from this. If the loss cannot be covered from this source, personal liability may be imposed on the natural and legal persons whose responsibility is determined by the SPK.
Upon notification by the SPK, it is envisaged that the Savings Deposit Insurance Fund (TMSF) will be able to initiate forced execution and follow-up proceedings against the assets of those responsible. Until the TMSF proceedings are completed, no other enforcement proceedings can be initiated on these assets; existing proceedings and attachments may be suspended.
Resources collected, returned, or obtained from asset sales will be kept in a “Recovery Account” to be opened separately for each fund within the TMSF. These accounts will be separate from the TMSF's own assets; they cannot be attached even for public receivables, cannot be pledged as collateral, and can only be used for payments to be made to fund shareholders.
It is planned that the recovered resources will be transferred by the TMSF to the institutions tasked with liquidation; if the liquidation procedures have been completed, they will be transferred to the Investor Compensation Center. While the draft is based on not creating additional financial burdens for the public and the Treasury, it aims to start the implementation immediately after the proposal is enacted.
News Source: 12punto
