The law regarding certain investment funds decided to be liquidated has been published in the Official Gazette and has entered into force. The regulation covers funds whose liquidation was decided by the Capital Markets Board (CMB) decisions dated September 17, 2026, and whose liquidation had not been completed as of the date the law was published.
The purpose of the law is defined as determining the procedures and principles regarding the fair, transparent, and effective liquidation of the funds in question, the recovery of assets unlawfully removed from the fund's assets, the collection of fund losses and damages from those responsible, and the payment of recovered values to fund shareholders.
WHICH FUNDS DOES THE REGULATION COVER?
The law will apply only to investment funds whose liquidation was decided by the CMB's decisions dated September 17, 2026, and whose liquidation has not yet been completed. The text also emphasized that these provisions do not constitute a general or permanent liquidation and liability regime for investment funds other than those specified.
The liquidation of the funds will be carried out by the organizations tasked with liquidation under the supervision and audit of the CMB. The Board will have the authority to determine the stages of the liquidation process, the identification and liquidation of fund assets, valuation principles, the determination of fund shareholding, interim and final payments, the order of distribution, and other procedures and principles.
It is envisaged that the organizations tasked with liquidation will exercise the necessary care to obtain the highest possible economic value, taking into account investor interests, market conditions, the fund portfolio structure, and the protection of fund assets.
If the CMB determines that the price formed on the stock exchange does not reflect the actual value of the relevant asset or will delay the liquidation, different sales methods and temporary price margin applications may be implemented. The Board may also approve the sale of certain assets outside the Stock Exchange upon the request of the organizations tasked with liquidation.
1 MILLION TL LIMIT ON INTERIM PAYMENTS
According to the regulation, interim payments may be made to investors in funds determined by the Board. It will be possible to make an interim payment of up to this amount for investors with a net investment amount of less than 1 million liras, and a maximum of 1 million liras for investors with 1 million liras or more.
The net investment amount will be calculated by the Central Securities Depository (MKK) by taking into account the cash inflows and outflows actually made by the fund shareholder to the fund. The calculation will be based on the arithmetic average of the change rates in the consumer price index and the domestic producer price index announced by TURKSTAT until the date of liquidation.
In the event that the distributable cash is insufficient to cover all claims, the CMB may determine a payment order or a minimum interim payment amount so that the maximum number of fund shareholders can benefit from the available cash. No payment exceeding the net investment amount, the calculated rights and receivables, or the 1 million lira interim payment ceiling can be made to any fund shareholder.
The law also stipulates that if the CMB determines that acts within the scope of market-distorting actions, insider trading, or market fraud were committed by these funds or by acting in concert with these funds, no payment will be made to the relevant persons and institutions from the liquidation and recovery account.
MKK, Takasbank, Borsa İstanbul, the Banks Association of Turkey, portfolio management companies, portfolio custodian institutions, other capital market institutions, and public institutions will also be obliged to provide the necessary information and documents for the implementation of the regulation to the CMB, the Investor Compensation Center (YTM), or the Savings Deposit Insurance Fund (TMSF) upon request without delay.
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. In the final payment, payments previously made to the fund shareholder from the liquidation assets, the recovery account, or through other legal means will be deducted.
News Source: 12punto
