Vice President Cevdet Yılmaz said that the precautionary and liquidation decisions regarding 7 companies and 131 funds aim to prevent problematic structures from harming the fund market as a whole. Stating that more than 455 thousand investors were affected by the incident, Yılmaz expressed that public resources will not be used in the liquidation processes.
Stating that judicial investigations and administrative audits regarding the fund scandal are ongoing, Yılmaz reported that ordinary liquidation processes have been completed in some companies, while negotiations are continuing for Atlas Portföy. Stating that the net investment amount will be taken as the basis for the payments planned to be made to investors, Yılmaz emphasized that the relevant legislative proposal has not yet passed through Parliament.
INVESTIGATIONS INTO THE FUND SCANDAL CONTINUE
Yılmaz stated that the new rules introduced to increase transparency in the fund market revealed the problematic structures and that necessary measures were taken. He noted that the Capital Markets Board (SPK) and the Banking Regulation and Supervision Agency (BDDK) have taken various decisions within the scope of the process, and that the State Supervisory Council (DDK) is also continuing its examinations.
LIQUIDATION COMPLETED IN SOME FUNDS
Stating that a legislative proposal has been prepared to protect the rights of the investors affected by the incident, Yılmaz announced that A1 Capital, Bulls, and Pardus have been liquidated. He stated that if the negotiations regarding Atlas Portföy are concluded, approximately 58 thousand more investors could be included in the ordinary liquidation process.
NET INVESTMENT AMOUNT WILL BE TAKEN AS BASIS IN PAYMENTS
Yılmaz said that there is no state guarantee in the fund markets and that no public resources will be used in the liquidation processes. Stating that the net investment amount will be taken as the basis for the payments planned to be made to investors within the scope of extraordinary liquidation, Yılmaz noted that the regulation should be evaluated based on the current legislative proposal.
The full statement of Vice President Cevdet Yılmaz is as follows:
MEASURES TAKEN IN THE FUND MARKET
“Along with the fund guide, new rules and regulations have arrived. Transparency has been increased. Rules have been set to create a much more reliable market. This is a very positive step for funds that comply with these conditions. With this rule, problematic funds have been exposed. Problems were experienced in these areas, and quick measures were taken against them. In order to prevent the incident experienced in a certain area of the fund market from spreading to the general public, their liquidation was decided quickly; in a sense, they were quarantined. Precautionary measures were imposed on 7 companies and 131 funds, and a liquidation decision was taken.”
“Judicial mechanisms have been activated, and the mechanism has begun to operate effectively against those who played a role in this business becoming problematic and caused many investors to be negatively affected. Many people are either under arrest, in custody, or in the investigation stage. When we look at the main culprits, I do not recall anyone who fled abroad. The owners of the companies are being processed judicially. Important investigations and examinations continue regarding those who have obtained exorbitant returns.”
AUDITS AND EXAMINATIONS
"On the administrative side, the SPK and BDDK have made various decisions. Our President has approached this process sensitively. Our government has kept this process under control from the very beginning. The Fund Coordination Board was established, and important decisions were taken. The State Supervisory Council was assigned. With a total of around 15 auditors and inspectors, the DDK has started its multi-faceted work in the field. Both the gaps in the administrations and the responsibilities of the individuals will be revealed. These are people directly assigned; the DDK also has the opportunity to benefit from the experts of all institutions. The DDK is auditing this process very strongly."
NUMBER OF INVESTORS AND LIQUIDATION PROCESSES
"There are more than 455 thousand investors affected by this incident. These funds constitute 4.6 percent of the total funds. A legislative proposal to protect their rights and laws was discussed in the Fund Coordination Board. We talked about it in our parliamentary group. The legislative proposal was shared last Friday. There are 7 companies and 131 funds. 3 companies accepted the ordinary liquidation conditions regarding these and were liquidated. This took place on October 8, and payments were made to nearly 44 thousand of our citizens. 17 funds were thus removed from the system. There are also funds that we call closed funds. In closed funds, there are over 2 thousand people in 3 institutions. We can say that 46 thousand people have entered the liquidation process through ordinary methods here. A1 Capital, Bulls, and Pardus have been liquidated, and there are no victims left."
“ORDINARY LIQUIDATION NEGOTIATION CONTINUES AT ATLAS PORTFÖY”
“The largest fund is Tera. On the other hand, there are Pusula, Hedef, and Atlas. Negotiations regarding Atlas are continuing; we will see this this week. Meetings are being held with the owners. We hope that it will be so. If Atlas also comes into play, there are around 58 thousand of our citizens there. Ordinary liquidation will also be applied to them.”
THERE IS NO STATE GUARANTEE IN FUNDS
“There is no question of using public resources in liquidations. There is no state guarantee in the fund markets. It exists in the banking system. For this, we have a structure called the Savings Deposit Insurance Fund (TMSF), and there is a resource accumulated there. Such a situation is not the case in funds. When going into free funds, a professional and qualified investor contract is signed. Gains and losses are accepted. The liquidation of these 3 funds will also be done with their own resources.”
HOW WILL LIQUIDATION PAYMENTS BE CALCULATED?
“The principal we take as a basis, we call this the net investment amount. In ordinary liquidations, the investor gets their money. In extraordinary liquidations, there is the concept of net investment amount that we take as a basis. What is this? You went and bought a share from a fund. You invested 1 million liras; this is your principal. Let's say you made 2 million in profit, you withdrew 2 million, 1 million remained in your account. We will not pay you up to 1 million in extraordinary payment. We are constructing a system that will pay the principal over the net investment amount. It has not passed through Parliament yet, let there be no misunderstanding. I am explaining it based on the current proposal.”
News Source: 12punto
