AK Party prepared a 9-article bill regarding the liquidation of funds and refunds to investors.
The bill is expected to be presented to the Presidency of the Turkish Grand National Assembly today. The offer covers investment funds that were decided to be liquidated by the decision of the Capital Markets Board (CMB) dated September 17 and whose liquidation was completed on the date of entry into force of the law.
According to the proposal, the interim payment amount that investors can receive during the liquidation process will be this amount if the net investment amount is below 1 million lira, and a maximum of 1 million lira if it is 1 million lira or more.
The bill is expected to be presented to the Presidency of the Turkish Grand National Assembly today.
WHAT ARE THE DETAILS?
If the distributable cash cannot cover all the interim payments, the available cash will be distributed by maintaining the ratio of the amount subject to the interim payment to the total interim payment.
The principal money invested by the investor in the fund will be updated against inflation until the liquidation date, based on the average of the CPI and D-PPI increases.
SDIF trustees may be appointed for assets seized in fund-related investigations. SDIF will be able to sell these assets without waiting for the results of the case.
The portfolio management company, which is the founder and/or manager of the fund, will be primarily responsible for any damage, loss or incomplete liquidation balance.
Leaving office will not eliminate the responsibility arising from the actions and decisions taken during the term of office.
If the cash cannot cover all the interim payments, the available cash will be distributed by maintaining the ratio of the amount based on the interim payment to the total interim payment.
Inflation indexation will not be applied in the interim payment calculation for funds that do not generate cash.
Even if it is against the legislation or in conformity with the form, the values from which fund benefits are obtained or removed from the fund will be deemed to be issued unlawfully.
FULL VERSION OF THE PROPOSAL TEXT
LEGAL PROPOSAL ON SOME INVESTMENT FUNDS THAT HAVE BEEN DECISIONED TO BE LIQUIDATED
Purpose and scope
ARTICLE 1- (1) The purpose of this Law; In accordance with Article 128 of the Capital Markets Law No. 6362 dated 6/12/2012, the procedure regarding the fair, transparent and effective liquidation of investment funds whose liquidation was decided by the decisions of the Capital Markets Board dated 17/9/2026 and whose liquidation was not completed on the date of entry into force of this Law, the recovery of the values illegally removed from the assets of these funds, the collection of the missing amounts as a result of the liquidation from those responsible, and the payment of the recovered values to the fund shareholders. and to regulate the principles.
(2) The provisions of this Law do not create a general or permanent liquidation and liability regime for investment funds other than those specified in the first paragraph.
Definitions
ARTICLE 2- (1) In the implementation of this Law;
a) Borsa: Borsa Istanbul Joint Stock Company,
b) Fund: Each of the investment funds whose liquidation was decided by the Board's decisions dated 17/9/2026 and whose liquidation was not completed on the date of entry into force of this Law,
c) Recovery account: A special account at the SDIF where the amounts collected and/or refunded within the scope of this Law or transferred to the optional refund accounts and general share refund accounts opened by the Board are monitored in separate sub-accounts for each fund, separate from the SDIF's own assets,
ç) Fund shareholder: Without prejudice to the sixth paragraph of Article 3 of the Law, the fund shareholder who is determined to have the right to receive payment from the liquidation balance of the relevant fund as a result of the reconciliation of the records of MKK, Takasbank, portfolio depository institutions, distribution institutions and the institution in charge of liquidation,
d) Board: Capital Markets Board,
e) MKK: Central Registry Agency Joint Stock Company,
f) Takasbank: Istanbul Clearing and Custody Bank Joint Stock Company.
g) Institution in charge of liquidation: The institution assigned by the Board to carry out the liquidation works and transactions of the relevant fund,
g) Liquidation assets: The current assets of the fund and their recovered values in accordance with this Law and the return, compensation and other receivables of the fund from third parties,
h) TEFAS: Türkiye Electronic Fund Buying and Selling Platform,
i) SDIF: Savings Deposit Insurance Fund,
i) YTM: Refers to Investor Compensation Center.
General principles regarding the execution of liquidation and determination of fund shareholding
ARTICLE 3- (1) The liquidation of the funds is carried out by the organizations in charge of liquidation, under the supervision and control of the Board. Board; It is authorized to determine the stages of the liquidation process, determination and conversion of fund assets into cash, valuation principles, determination of fund shareholding, interim and final payment, distribution order and other procedures and principles regarding liquidation.
(2) Institutions tasked with liquidation shall exercise due care in order to obtain the highest possible economic value by taking into account the interests of investors, the market conditions of the relevant asset and fund portfolio structures, the protection of fund assets and the common interest of fund shareholders. In cases where the Board determines that the price formed in the stock exchange does not reflect the real value of the relevant asset or will delay the liquidation, the Board may decide on buyback, right to sell to the controlling shareholder, wholesale sales and special transaction notification methods, temporary different price margin and other methods included in the Stock Exchange legislation in liquidation transactions. The Board may approve the sale of the relevant assets outside the Stock Exchange upon the request of the institutions responsible for liquidation. In terms of sales transactions to be made within the scope of this paragraph, the restrictions in the Board's regulations regarding investment funds do not apply. The Board may decide that investors who will purchase assets through sales on the Stock Exchange or outside the Stock Exchange cannot sell the assets subject to this transaction on the Stock Exchange for a certain period of time and cannot take any action that will result in the sale of these assets on the Stock Exchange.
(3) Amounts collected during the liquidation process are included in the liquidation assets after deducting the mandatory expenses incurred for the management and liquidation of the fund. Amounts collected after the liquidation is completed are transferred to the recovery account in a way that does not lead to repeated payments.
(4) MKK, Takasbank, Stock Exchange, Turkish Banking Association, institutions in charge of liquidation, portfolio management companies, portfolio custody institutions and other capital market institutions and public institutions and organizations are obliged to provide the necessary information and documents for the implementation of this Law to the Board, YTM or TMSF upon their request, without delay. These institutions and organizations cannot refrain from providing information based on the provisions regarding confidentiality and confidentiality in their special legislation.
(5) Fund shareholding is determined on a fund and account basis by the institutions in charge of liquidation by reconciling the records of MKK, Takasbank, TEFAS, portfolio custody institutions and distribution institutions.
(6) In case the acts regulated in Articles 104, 106 or 107 of the Capital Markets Law No. 6362 dated 6/12/2012 are committed by or with the funds decided to be liquidated by the Board's decisions dated 17/9/2026, or with the participation of these funds, the persons and institutions determined by the Board to have committed these acts or acted together with them, the Board's decision dated 17/9/2026 No payment will be made from the liquidation and recovery account of the funds decided to be liquidated in accordance with the decisions.
Net investment amount, interim payment and final payment
ARTICLE 4- (1) If the fund assets are converted into cash and there is no cash available to enable payment to all fund shareholders, the net investment amount of the fund shareholder to be taken into account in the payments to be made from the liquidation balance, without prejudice to the sixth paragraph of Article 3; 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 date of liquidation of each cash inflow and outflow made by the fund shareholder to the fund is calculated by MKK by deducting the amount of each cash outflow from the fund to the fund shareholder on a first-in, first-out basis, from the inflow and outflow amounts to be found by applying the odds ratio method, in case the inflow amount is more than the outflow amount.
(2) In terms of the payments to be received from the liquidation balance of the fund shareholders, an interim payment of this amount can be made from the liquidation assets of the relevant fund for investors whose net investment amount is below 1,000,000 TL, and a maximum of 1,000,000 TL for investors whose net investment amount is 1,000,000 TL and above, provided that it does not exceed the amount in the first paragraph. However, the indexation foreseen in the first paragraph is not applied in the calculation of the interim payment to be made within the scope of this paragraph. The amount of interim payment to be made to fund shareholders cannot exceed the total value of the fund participation shares in the account at the end of the previous day, excluding money market funds. For funds that do not announce a price at the end of the previous day, the price calculated by Takasbank based on the valuation made on the relevant day is accepted as the price of the fund calculated at the end of the previous day.
(3) If the distributable cash is not sufficient to cover the entire interim payment amounts calculated in accordance with the second paragraph, the available cash is distributed by maintaining the ratio of the amount subject to interim payment of each fund shareholder to the sum of the amounts within this scope of all fund shareholders. In this way, no payment can be made to any fund shareholder exceeding the net investment amount, finalized rights and receivables amount or the interim payment ceiling of 1,000,000 TL. No refund of participation fee will be made in return for interim payment; The participation shares in question are returned during the final liquidation payments.
(4) In the funds decided to be liquidated by the Board's decisions dated 17/9/2026, the portion exceeding the sum of the precedent return amount calculated by the method to be determined by the Board, based on the annual average return of investment funds accepted to be in the same investment strategy category as the fund title, by taking into account the actual investment amount they made into the fund and the period that this amount remained in the fund, by persons who received payments by returning their participation shares to the fund based on unrealistic values until the liquidation date, will be refunded optionally to the accounts announced by the Board. can be done. In determining the comparable return, the returns of the funds decided to be liquidated within the scope of this Law are not included in the calculation. By persons who have profited from the shares included in the assets of these funds and whose prices have been determined by the Board to be untrue, the part of the return obtained from the said shares that exceeds the ordinary return calculated on the basis of the return of the index to which the relevant share is included in the period in which the share is held and/or other objective market criteria to be determined by the Board, may optionally be refunded to the general share return account announced by the Board. The Board is authorized to determine the index, precedent, period and calculation method to be used in determining the comparable fund group, calculation period, annual average return calculation method, ordinary return of the share and the amount to be refunded, and other procedures and principles regarding the implementation of this paragraph.
(5) In the final payment, previous payments made to the fund shareholder from the liquidation assets, recovery account, optional refund accounts or other legal means are deducted.
Values illegally removed from fund assets and personal liability
ARTICLE 5- (1) From the fund's assets in violation of the legislation or without having a real economic purpose in the interest of the fund, even if it is formally in compliance with the legislation; Money, capital market instruments, goods, rights and receivables issued or transferred in favor of related parties, controlling partners, managers, persons they directly or indirectly control or other third parties through unrequited or collusive transactions, loans, debts, advances, guarantees, transfers, assignments, purchases, sales, repo, reverse repo or similar transactions and agreements, and the values that replace them or are obtained by evaluating them, are deemed to be illegally removed from the fund assets and the fund is deemed to have suffered a loss or damage.
(2) The portfolio management company, which is the founder and/or manager of the fund, is primarily responsible for any damage or loss or incomplete liquidation balance. In case this amount cannot be collected in whole or in part from the portfolio management company, or if it is clear that it cannot be collected, the natural and legal persons whose responsibility is determined by the Board for the damage or loss of the fund or the formation of the incomplete liquidation balance, and those who are determined to act together with these persons, are personally responsible. The resignation of the persons within the scope of this paragraph from their duties does not eliminate their responsibilities arising from the transactions and decisions taken during the period they served or had management or control.
(3) In cases not covered by Article 6 of the Law, the Board determines the amount of damage or loss or incomplete liquidation balance for each fund, the real and legal persons responsible for the damage or loss or incomplete liquidation balance, and the amounts for which they are responsible, taking into account the liquidation transactions and audit and examination results, and notifies the SDIF.
(4) Upon notification of the Board, collection and follow-up procedures are initiated by SDIF within the scope of the Law No. 6183 on the Collection Procedure of Public Receivables, dated 21/7/1953, in order to recover the assets of those responsible. SDIF has the authority to apply the provisions of Law No. 6183 and the provisions of Articles 132, 134, 136, 138, 140 and Provisional Articles 27 of the Banking Law No. 5411 dated 19/10/2005 in follow-up transactions. Istanbul administrative courts have jurisdiction regarding the cases to be filed within the scope of this paragraph. Until the proceedings carried out by the SDIF to ensure the collection of receivables within the scope of this Law regarding the persons to whom the Board has notified the SDIF are concluded, new proceedings cannot be initiated on the asset values of these persons within the scope of the Execution and Bankruptcy Law No. 2004 dated 9/6/1932; Previously initiated proceedings are stopped and within the scope of these proceedings, sales and money distribution transactions cannot be made regarding the seized assets, and no precautionary measures or provisional seizures can be placed on these asset values; Previously placed liens, provisional liens and precautionary measures are lifted without the need for any further action.
(5) Compensation obligations arising from special provisions of persons whose responsibilities are determined within the scope of this article due to their own faults and responsibilities are reserved.
Values of seized and confiscated assets and recovery account
ARTICLE 6- (1) Within the scope of investigations carried out due to acts related to funds within the scope of this Law, a seizure decision may be made in accordance with Article 128 of the Criminal Procedure Law No. 5271 dated 4/12/2004. If there are money and capital market instruments among the seized assets that can be legally returned directly to the fund, these will be returned to the relevant fund or recovery account by the public prosecutor, judge or court in accordance with Article 131 of Law No. 5271. this joke
