Following the fund scandal in the capital markets, preparations for a new regulation were initiated.
In addition to new mechanisms to protect investors, the prepared draft envisages establishing an "early warning and automatic action system", tightening inspections and imposing heavier sanctions for some violations.
Work on the planned changes to the Capital Markets Law has been accelerated.
It was reported that the draft, which is expected to consist of approximately 30 articles, was studied through different alternatives, and that it was planned to be submitted to AKP President Recep Tayyip Erdoğan for approval after the regulation was matured.
WORKING ON THREE MAIN TITLES
In the draft, the regulations are planned to be shaped under three main headings: investor protection, early intervention of the Capital Markets Board (CMB), liability and deterrent sanctions.
Article 96 of the current Capital Markets Law gives the CMB powers such as limiting the activities, temporarily suspending them and revoking their authority in case of detection of illegal activities of the capital market institutions.
According to the news of Önder Yılmaz from Hürriyet, with the new regulation, situations such as serious endangerment of the rights and interests of investors or the healthy functioning of the market are considered to be included among the early intervention criteria.
CMB'S AREA OF INTERVENTION WILL EXPAND
It is also planned to make changes to Article 101, which regulates market intervention. Accordingly, it is aimed to more clearly determine under what conditions and in what manner the CMB will implement measures such as transaction ban, short selling limitation, limitation of data distribution and transaction limit.
Expanding the notification obligation of capital market institutions is also on the agenda. Not only situations where there is suspicion of crime; Unusual fund returns, excessive concentration, related party transactions, unusual price movements, liquidity deterioration and abnormal increases in investor outflows are also considered to be included in the scope of notification.
'AUTOMATIC ACTION' SYSTEM
Within the scope of preparations, establishing the legal infrastructure of the early warning mechanism is also on the agenda. Thus, it is aimed to run intervention processes faster and reduce human initiative in case certain risk indicators emerge.
of the system; It is planned to be activated in cases where the size of a fund increases in a way that cannot be explained by basic financial indicators, the rate of cash or easily convertible assets decreases rapidly, or the share of a fund or funds belonging to the same group in a shallow share increases unusually.
INCREASING PENALTIES IS ON THE AGENDA
In the draft, instead of increasing administrative fines only by the revaluation rate, increasing the lower and upper limits for some violations is also considered.
While it is stated that the administrative fines imposed by the CMB in the current regulation vary between 9 thousand 482 TL and 5 million 565 thousand TL, the new study focuses on the options of increasing the penalties and determining the amount of sanctions according to the economic size of the violation.
It is also planned to introduce clearer rules in which cases fund transactions, related party transactions and artificial price formation will be considered "market distortion actions".
NEW ASSURANCES FOR FUND INVESTORS
One of the important topics of the regulation is the protection of fund investors.
The aim is to prepare the legal basis for making interim payments to investors in liquidated funds, to determine how the net investment amount will be calculated, and to accelerate the liquidation processes.
It is also planned to rearrange the headings such as CMB's temporary transaction ban, taking measures to protect assets, freezing portfolios and expanding the authority to request information and documents.
RESPONSIBILITIES OF FUND MANAGERS WILL BE CLEAR
The study also envisages making the duties and responsibilities of fund managers more clear. It is planned to separate fund assets from company assets, strengthen risk management, internal control mechanisms and rules regarding recording investment decisions.
It is also aimed to clarify the rules regarding who, when and to which institution will be notified in case of a serious difference between the fund's real value and its declared value.
