29.10.2026 21:08
The Fund Law, adopted by the General Assembly of the Grand National Assembly of Turkey, was published in the Official Gazette and entered into force.
Critical development occurred in the fund investigation. The law on the funds whose liquidation was decided and which was adopted by the Grand National Assembly of Turkey (TBMM) was published in the Official Gazette and entered into force. Under the law, interim payments of up to 1 million lira will be made.
LIQUIDATION OF FUNDS WILL BE CARRIED OUT UNDER CMB SUPERVISION
According to the provision of the regulation titled "General principles regarding the execution of liquidation and determination of fund unit ownership", the liquidation of funds will be carried out by institutions tasked with liquidation under the supervision and inspection of the CMB. The Board will be authorized to determine the stages of the liquidation process, the identification and conversion of fund assets into cash, valuation principles, the manner of determining fund unit ownership, interim and final payments, the distribution order, and other procedures and principles regarding liquidation.
Institutions tasked with liquidation will exercise due diligence to obtain the highest possible economic value, taking into account investor interests, the market conditions of the relevant asset and fund portfolio structures, the protection of fund assets, and the common interests of fund unit holders. In cases where the Board determines that the price formed on the Stock Exchange does not reflect the true value of the relevant asset or will delay liquidation, the Board may decide to apply a temporary different price margin in liquidation transactions through buyback, right to sell to the controlling shareholder, block sale, and special transaction notification methods, and to use other methods set out in capital markets legislation and Stock Exchange legislation. The Board may approve the sale of relevant assets off the Stock Exchange upon the request of institutions tasked with liquidation.
Within this scope, the restrictions in the Board's regulations on investment funds will not apply to sales transactions to be carried out. The Board may decide that investors who purchase assets through sales on or off the Stock Exchange cannot sell the assets subject to this transaction on the Stock Exchange for a certain period and cannot engage in any transaction that would result in these assets being sold on the Stock Exchange.
Amounts collected during the liquidation process will be included in the liquidation estate after deducting mandatory expenses incurred for the management and liquidation of the fund. Amounts collected after the completion of liquidation will be transferred to the recovery account in a way that will not lead to duplicate payments.
Since orders submitted to the Turkey Electronic Fund Purchase and Sale Platform (TEFAS) on behalf of participation unit holders but not executed due to the relevant fund's default or failure to announce a price have become invalid, it is aimed to determine that participation unit holders whose participation units are in the TEFAS Transaction Blockage Sub-Account are also within the scope of liquidation in their capacity as fund unit holders. Accordingly, with respect to orders submitted to TEFAS on or before 17 September 2026 regarding the funds subject to liquidation but not executed due to the relevant fund's default and/or failure to announce the participation unit price, those whose participation units have been blocked will be subject to the liquidation provisions in the regulation in their capacity as fund unit holders.
MATTERS FOR WHICH NO PAYMENT WILL BE MADE
Where the acts regulated under the provisions of the Capital Markets Law titled "market-disturbing acts", "misuse of information", and "market fraud" are committed by the funds whose liquidation was decided by the Board's decisions dated 17 September 2026, or are committed in concert with these funds, or are committed with the participation of the funds, no payment will be made from the liquidation and recovery account of the funds whose liquidation was decided under the Board's aforementioned decisions to persons and institutions determined by the Board to have committed these acts or acted in concert with these funds.
According to the provision of the proposal titled "Net investment amount, interim payment and final payment", if the distributable cash obtained as a result of converting fund assets into cash is not sufficient to cover the total amount calculated on the basis of the fund unit price valid as of the end of the day immediately preceding the liquidation decision and the number of participation units subject to payment, the net investment amount of the fund unit holder to be taken into account in payments from the liquidation balance will be calculated by MKK by applying the pro rata temporis method to the arithmetic average of the change rates in the consumer price index and domestic producer price index announced by the Turkish Statistical Institute until the liquidation date to each cash inflow and outflow actually made to and from the fund by the fund unit holder, and, where the inflow amount exceeds the outflow amount, by deducting the amount of each cash outflow made from the fund to the fund unit holder on a first-in, first-out basis, without prejudice to the provision on the acts regulated under the provisions of the Capital Markets Law titled "market-disturbing acts", "misuse of information", and "market fraud".
PAYMENTS OF UP TO 1 MILLION LIRA WILL BE MADE
To be offset against payments that fund unit holders will receive from the liquidation balance, subject to not exceeding the portion of the net investment amount calculated under the relevant provision without indexation, in funds determined by the Board, an interim payment may be made in this amount for investors whose net investment amount is below 1 million Turkish lira, and at most 1 million Turkish lira for investors whose net investment amount is 1 million Turkish lira or more. The interim payment amount to be made to fund unit holders, excluding money market funds, may not exceed the total value of the fund participation units in the relevant fund unit holder's account calculated as of the end of the day immediately preceding the date on which the interim payment amount is calculated. The fund's previous end-of-day price will be the price calculated by Takasbank based on the valuation made for the relevant day, with the required information obtained from the institutions tasked with liquidation.