A 10-item regulation is coming regarding fund liquidation: Details have been announced
With the 10-article proposal that AKP will submit to the Turkish Grand National Assembly, the principles of extraordinary liquidation processes and investor payments will be determined.
Quick Look
- A new legal regulation consisting of 10 articles is being prepared for the management of approximately 1 trillion TL of assets in 131 investment funds that have been decided to be liquidated and for investor payments.
- The aim is to protect small investors and collect the losses from those responsible.
AI-generated summary
Why It Matters
As of September 17, a liquidation decision was taken for 131 investment funds. The total size of these funds is approximately 1 trillion TL.
Legal preparations regarding investment funds that have been decided to be liquidated have come to an end.
The 10-article provisional bill proposal that AKP plans to submit to the Turkish Grand National Assembly aims to determine the process to be followed in funds where ordinary liquidation is not sufficient, the institutions that will take part, and the principles of payments to be made to investors.
It was stated that the final version of the regulation is being worked on and that the proposal is planned to be submitted to the Turkish Grand National Assembly, with commission discussions starting next week.
It is envisaged that the proposal will be put on the agenda before the commission stage of the 2027 budget negotiations.
APPROXIMATELY 1 TRILLION TL IN 131 FUNDS
The total size of the 131 funds that were decided to be liquidated was approximately 1 trillion TL as of September 17, when the decision was taken.
While this amount corresponds to approximately 20 billion dollars, the number of investors in the funds was announced as approximately 450 thousand.
PAYMENTS STARTED IN ORDINARY LIQUIDATION
According to the schedule announced by Vice President Cevdet Yılmaz at the General Assembly of the Turkish Grand National Assembly, the payment process to investors has started for the funds that are subject to the ordinary liquidation method.
As for the funds within the scope of extraordinary liquidation, how the process will work and which institutions will take part will be regulated in a 10-item proposal.
PRIORITY TO SMALL INVESTORS
The proposal plans to define situations where ordinary liquidation is not possible and prioritize the protection of small investors in the payment process.
In this context, the legal framework of the concept of "right holder" will be created.
The regulation will also include how the amounts used in entering and exiting the funds will be calculated by indexing them to inflation by the Central Registry Agency (CRA).
INTERIM PAYMENT OF 1 MILLION TL WILL BE ARRANGED
The regulation will also determine the principles on which the previously announced interim payments up to 1 million TL will be made.
It is planned to transfer the interim payment to the investor as soon as possible, and the remaining receivables will be covered according to the determined payment schedule.
DAMAGES WILL BE COLLECTED FROM THOSE RESPONSIBLE
Another step of the extraordinary liquidation process will be the collection of damages from those responsible.
With the proposal, a legal infrastructure will be created to convert into cash the assets and amounts received from those responsible by return or other methods.
Which institutions will take part in this process will also be determined.
It is anticipated that real estate will be among the assets that can be converted into cash for payment to investors.
The method by which the assets in question will be sold and how the resulting resources will be distributed to investors will also be among the provisions of the offer.
What to Watch
AI outlook — possibilities, not facts
The legal regulation proposal will be submitted to the Turkish Grand National Assembly next week.
Likely · Within weeks
Open Questions
- When exactly will the payment schedule start?
- How will the damage be collected from those responsible?
