Ankara:The Turkish parliament has passed new legislation governing the liquidation of specific investment funds and the recovery of assets unlawfully removed from their portfolios. This law targets funds ordered for liquidation by the Capital Markets Board of Türkiye (CMB) on September 17, but whose liquidation had not been finalized by the publication date of the law.
According to Anadolu Agency – English, the legislation mandates that the liquidation process will be managed by designated institutions under CMB supervision. The proceeds from these liquidations, after deducting necessary expenses, will be added to the funds' liquidation assets. Interim payments of up to one million Turkish liras ($20,150) will be available to eligible investors based on their net investment amounts and other conditions.
Investors with net investments below one million liras may receive payments up to those amounts, while those with higher balances will have their payments capped at one million liras. The law also stipulates that individuals and institutions found by the CMB to have engaged in market abuse, insider trading, or market manipulation with respect to the affected funds will be prohibited from receiving payments from liquidation assets or recovery accounts.
The legislation holds portfolio management companies that established or managed the funds primarily responsible for any losses. Other parties may be held liable under specified conditions if the losses cannot be recovered directly from these companies. The Savings Deposit Insurance Fund (SDIF) is authorized to recover losses from responsible parties identified by the SPK and may be appointed as a trustee over certain assets.
Assets seized or confiscated in relation to the affected funds may be returned to the funds or transferred to recovery accounts as per the law's procedures. Recovered funds will be distributed to investors through designated liquidation institutions or, if liquidation is complete, via the Investor Compensation Center (ICC) in proportion to their holdings in the funds.