22.10.2026 07:00
The first 5 articles of the bill concerning investors affected by the fund crisis were adopted in the General Assembly of the Turkish Grand National Assembly. The regulation paves the way for interim payments of up to 1 million Turkish liras to investors, while stipulating that money unlawfully taken from the funds be recovered from those responsible.
Negotiations are ongoing in the General Assembly of the Grand National Assembly of Turkey on the bill prepared regarding investment funds decided to be liquidated. The first 5 articles of the bill, which envisages covering the losses of fund investors, recovering assets unlawfully removed and collecting from those responsible, were accepted. According to the regulation, interim payments of up to 1 million Turkish lira may be made to investors meeting the specified conditions. Meanwhile, transactions worth approximately 40.8 billion Turkish lira for more than 45 thousand investors were completed during the liquidation process.
FIRST 5 ARTICLES ACCEPTED IN PARLIAMENT
Negotiations continued in the General Assembly of the Grand National Assembly of Turkey on the Bill on Certain Investment Funds Decided to be Liquidated. The 5 articles in the first section of the bill were accepted after the discussions of the members of parliament.
With the regulation, it is aimed to liquidate the investment funds decided to be liquidated in a fair, transparent and effective manner, to recover the values unlawfully removed from the funds' assets, and to collect the losses incurred from those responsible.
The procedures and principles regarding the payment of recovered values to fund unit holders are also regulated by the bill.
The provisions of the bill will not establish a general or permanent liquidation and liability regime for other investment funds outside its scope.
CMB WILL BE AUTHORIZED IN THE LIQUIDATION PROCESS
According to the accepted articles, the liquidation of funds will be carried out by institutions assigned for liquidation under the supervision and audit of the Capital Markets Board (CMB).
The CMB may determine the stages of the liquidation process, the identification of fund assets, their conversion into cash, valuation principles, determination of fund unit ownership, interim and final payments, the order of distribution and the procedures for other transactions.
Institutions responsible for liquidation will exercise due diligence to obtain the highest possible economic value, taking into account the interests of investors, market conditions, the structure of fund portfolios and the protection of fund assets.
In cases where the price formed on the Stock Exchange does not reflect the real value of the relevant asset or would delay the liquidation process, different sales methods may be used.
In this context, the CMB may decide on methods such as buyback, the right to sell to the controlling shareholder, wholesale sale, special transaction notification and temporary application of a different price margin.
FUND ASSETS MAY ALSO BE SOLD OUTSIDE THE STOCK EXCHANGE
Upon the request of institutions responsible for liquidation, the CMB may permit the relevant assets to be sold outside the Stock Exchange.
In these sales, some restrictions in the Board's regulations regarding investment funds will not apply.
The CMB may also prevent investors who purchase assets in sales made on the Stock Exchange or outside the Stock Exchange from selling these assets on the Stock Exchange for a certain period or from carrying out transactions that would result in a sale.
Amounts collected during the liquidation process will be included in the liquidation estate after deducting the mandatory expenses made for the management and liquidation of the fund.
Amounts collected after the completion of liquidation, on the other hand, will be transferred to the recovery account in a way that does not cause duplicate payments.
INSTITUTIONS WILL BE OBLIGED TO PROVIDE INFORMATION
According to the regulation, the Central Registry Agency (MKK), Takasbank, Borsa Istanbul, the Banks Association of Turkey, portfolio management companies, portfolio custody institutions and relevant public institutions will promptly transmit the information and documents necessary for implementation to the CMB, the Investor Compensation Center (YTM) or the Savings Deposit Insurance Fund (TMSF) upon request.
Such institutions and organizations will not be able to avoid providing information by citing the confidentiality and secrecy provisions in their special legislation.
Fund unit ownership will be determined on a fund and account basis by the institutions responsible for liquidation, by comparing them with MKK records.
BLOCKED FUND UNITS ALSO INCLUDED IN SCOPE
With the motion accepted in the General Assembly, the situation of investors who want to trade through the Turkey Electronic Fund Purchase and Sale Platform (TEFAS) but whose transactions could not be carried out due to funds defaulting or not disclosing prices was also regulated.
Accordingly, investors whose units are held in the TEFAS Transaction Blockage Sub-Account within the scope of orders submitted to TEFAS on or before 17 September 2026 but not executed due to the default of the relevant fund or the failure to disclose the participation unit price will also be considered fund unit holders.
These persons will also be able to benefit from the liquidation provisions.
NO PAYMENT WILL BE MADE TO THOSE ENGAGING IN INSIDER TRADING
According to the regulation, no payment will be made to persons and organizations determined by the CMB to have committed acts considered within the scope of market-disturbing actions, insider trading and market fraud, or to have acted together with funds that carried out such acts.
In this context, no payment will be made to the said persons and institutions from the liquidation and recovery accounts of the funds decided to be liquidated by the Board's decisions dated 17 September 2026.
HOW WILL THE NET INVESTMENT AMOUNT BE CALCULATED?
The bill also determined the method for calculating the net investment amount to be taken as basis in payments to investors.
If the distributable cash obtained as a result of liquidation does not cover the total amount calculated over the fund unit price valid as of the end of the day before the liquidation decision and the number of participation units subject to payment, a different calculation method will be applied.
In this case, the investor's cash inflows into the fund and cash outflows from the fund will be taken into account.
Each cash inflow and outflow will be updated according to the elapsed time, using the arithmetic average of the change rates in the consumer price index and the domestic producer price index announced by the Turkish Statistical Institute until the liquidation date.
The net investment amount of the fund unit holder will be calculated by MKK as a result of deducting the outflows from the updated cash inflows using the first-in, first-out method.
Provisions regarding market-disturbing actions, insider trading and market fraud will be reserved.
INTERIM PAYMENT OF UP TO 1 MILLION TURKISH LIRA TO INVESTORS
The limits of interim payments that can be made to investors were also determined by the accepted articles.
Accordingly, in funds determined by the CMB, interim payments of up to that amount may be made to investors whose net investment amount is below 1 million Turkish lira, and up to a maximum of 1 million Turkish lira to investors whose net investment amount is 1 million Turkish lira or more.
Interim payments will be offset against the amounts investors will receive from the liquidation balance.
The payment amount cannot exceed the portion of the net investment calculated without applying indexation.
Except for money market funds, the interim payment cannot exceed the total value of the fund participation units in the investor's account as of the end of the day before the calculation date.
The fund's previous day-end price will be calculated by Takasbank in line with information to be obtained from the institutions responsible for liquidation.
MONEY UNLAWFULLY TAKEN OUT OF FUNDS WILL BE RECOVERED
The bill also regulates the scope of values unlawfully removed from fund assets and who will be held liable for the resulting damage.
Accordingly, values removed from fund assets in violation of legislation will be considered fund damage or loss.
In addition, values removed through transactions that appear formally compliant with legislation but have no genuine economic purpose serving the fund's interests will also be assessed within the same scope.
The portfolio management company, which is the fund's founder or manager, will be primarily liable for the resulting damage or loss.
Real and legal persons whose liability in damaging the fund is determined by the SPK, as well as those found to have acted together with such persons, will also be held personally liable.
The fact that liable persons have left their duties will not eliminate their liability arising from transactions and decisions during the period in which they served or held management and control.
TMSF WILL STEP IN FOR COLLECTION
In cases outside the scope of the provision concerning seized and forfeited asset values and the recovery account, the SPK will determine the amount of damage or loss for each fund.
The Board will identify the real and legal persons responsible for the damage and the amounts for which they are liable, and will notify the TMSF.
Following the SPK's notification, the TMSF will initiate follow-up and collection proceedings under the Law on Procedures for the Collection of Public Receivables in order to enable collection from the assets of liable persons.
The TMSF will have the authority to apply the relevant provisions of the law.
PROCEEDINGS ADJOURNED
After Article 5 of the bill was accepted at the General Assembly of the Grand National Assembly of Turkey, the session was adjourned.
Deputy Speaker of the Grand National Assembly of Turkey Tekin Bingöl, after the break, upon the commission not taking its place, closed the session to reconvene at 14:00.
40.8 BILLION LIRA LIQUIDATION FOR MORE THAN 45,000 INVESTORS
Meanwhile, the latest data on the funds' liquidation process were also announced.
Ziraat Bank completed in-kind and cash liquidation transactions worth approximately 40.8 billion lira for more than 45,000 investors in 66 separate investment funds managed by A1 Portfolio Management Company Inc., Bulls Portfolio Management Company Inc. and Pardus Portfolio Management Company Inc.
Following these transactions, the number of funds in the liquidation process fell from 131 to 65.
MORE THAN 455,000 INVESTORS AFFECTED BY FUND CRISIS
At the beginning of the liquidation process, there were 131 funds; with the latest transactions, this number dropped to 65.
There are 151,247 unique investors in the funds for whose liquidation Ziraat Bank is responsible, and 388,718 unique investors in the 6 funds for whose liquidation İş Bank is responsible.
The total number of investors affected by the fund crisis is stated to be 455,578.
Approximately 350,000 of these investors have investments of less than 1 million lira in the funds.
85 PEOPLE ARRESTED, ASSETS SEIZED
As part of the fund investigation, as of October 7, 2026, legal action was taken against 220 people, including managers of the troubled fund companies.
Within the scope of the investigation, 85 people were arrested, while arrest warrants were issued for 23 suspects. In addition, overseas travel bans were imposed on 81 people.
To prevent the concealment of crime proceeds, 21 seizure decisions were issued on movable and immovable assets belonging to 63 real persons and 12 legal entities.
In addition, values in the bank accounts, crypto assets and rented safe-deposit boxes of 67 people and companies were seized.
.