Recent Developments
The Capital Markets Board of Türkiye (the “CMB“), through its resolutions dated 17 September 2026 and numbered 57/1706, 57/1707 and 57/1708 (the “Fund Liquidation Resolutions“), had closed to trading on the Turkish Electronic Fund Trading Platform (the “TEFAS“) all investment funds founded by seven portfolio management companies and resolved to liquidate the funds listed in the Fund Liquidation Resolutions (the “Liquidation Funds“).
New regulations have been introduced within the scope of the fund liquidation process that commenced with the Fund Liquidation Resolutions.
Regulatory Steps
The Law No. 7596 on Investment Funds Subject to Liquidation (the “Liquidation Law“) was adopted on 22 October 2026 and entered into force upon its publication in the Official Gazette dated 27 October 2026. In this context, through its resolution dated 27 October 2026 and numbered 76/1903, the CMB published an announcement on the liquidation and payments to be carried out under the Liquidation Law (the “CMB Announcement“).
In addition, as part of the new measures it has taken, through its resolution published in the CMB bulletin dated 26 October 2026 and numbered 2026/75, the CMB resolved to suspend the operations of Tera Portföy Yönetimi A.Ş. and Pusula Portföy Yönetimi A.Ş. and to liquidate the funds founded by these companies, in addition to the Liquidation Funds.
Further, through its principle resolution dated 26 October 2026 and numbered 75/1899, the CMB updated the thresholds required to qualify as a professional client/qualified investor.
Finally, through its principle resolution dated 26 October 2026 and numbered 75/1897, the CMB amended the Guide on Investment Funds updating the legal framework applicable to investment funds.
What’s New?
Pursuant to the Liquidation Law and the CMB Announcement:
- Unitholders of the Liquidation Funds may receive interim payments of up to TRY 1 million, not exceeding their net investment amount, to be set off against their liquidation shares, on a fund basis. Priority will be given to the money market funds in terms of interim payments.
- If the distributable cash is insufficient to cover the interim payments, the CMB may resolve to make payments starting with the unitholders of the funds with the lowest net investment amount, so that the largest possible number of unitholders receive payment in full, or to set a minimum interim payment.
- The investments of investors whose units were blocked due to orders submitted to TEFAS[1] on or before 17 September 2026 but not executed due to the fund’s default or the non-announcement of the price will also be considered within the scope of the liquidation.
- Where a fund has been caused to incur a loss contrary to its interests or to applicable laws, the portfolio management company will be primarily liable for such loss and, if the loss cannot be recovered therefrom, the persons to be determined by the CMB will be personally liable. Amounts collected or returned in this context will be held in recovery accounts and used to pay the claims of unitholders of the funds.
- In this context, it is expected that, in the coming period, the losses incurred by the funds and the persons liable for such losses will be identified and notified to the Savings Deposit Insurance Fund (the “SDIF“), collection proceedings against those persons will be initiated by the SDIF, and the payments will be made.
Pursuant to the CMB’s resolution published in the CMB bulletin dated 26 October 2026 and numbered 2026/75, the operations of Tera Portföy Yönetimi A.Ş. and Pusula Portföy Yönetimi A.Ş. were temporarily suspended, and it was resolved that the funds founded by these companies, other than the Liquidation Funds, will also be liquidated.
Pursuant to the CMB’s principle resolution dated 26 October 2026 and numbered 75/1899:
- The total financial assets threshold and the transaction volume threshold for clients who may be treated as professional clients upon request have been increased from TRY 10 million to TRY 50 million; from TRY 5 million to TRY 25 million, respectively. In addition, for entities to be treated as professional clients, the total assets threshold, the annual net revenue threshold and the equity threshold have been increased from TRY 500 million to TRY 2.5 billion; from TRY 1 billion to TRY 4.5 billion; from TRY 50 million to TRY 250 million, respectively.
- The qualified investor criteria, which are determined by reference to the professional investor rules, have also been updated in line with these changes.
- In addition, the existing exemptions applicable to real estate investment funds and venture capital investment funds have been abolished, and it has been resolved that the new thresholds for qualified investor status will also apply to the qualified investors to whom the units of these funds will be sold.
- Clients who acquired professional client and/or qualified investor status under the previous thresholds before the resolution date will also first need to evidence, in writing or electronically, to the investment firm through which they receive services that they meet the current criteria. Otherwise, clients holding capital markets instruments that are available for trading by qualified investors will only be able to place sell orders for such instruments.
Pursuant to the CMB’s principle resolution dated 26 October 2026 and numbered 75/1897, the hedge funds will need to ensure their compliance with investment restrictions by, at the latest, 31 January 2027.
Conclusion
While the legal framework for the fund liquidation process has been broadened, the rules on qualified investors and investment funds have also been updated. In the coming period, more concrete steps are expected on issues at the center of discussions, such as the timing of payments and the collection processes.
[1]TEFAS is the electronic fund trading platform operated by Takasbank, the settlement and custody bank of Borsa Istanbul.
