Türkiye’s capital markets regulator approves interim payments to investors in funds under liquidation

ISTANBUL

(AA Photo)

Türkiye’s Capital Markets Board (SPK) has approved interim payments of up to 1 million Turkish liras ($20,394) per eligible investor in funds established by Tera, Pusula, Atlas and Hedef portfolio management companies that are undergoing liquidation.

According to the board’s latest bulletin, the payments will be made to all fund unit holders whose account reconciliation has been completed, as advances against the amounts they will ultimately receive once liquidation is finalized.

Payments will be based on each investor’s net investment amount calculated by the Central Securities Depository (MKK).

Investors with net investments below 1 million liras will receive that amount, while payments to those with net investments of 1 million liras or more will be capped at 1 million liras.

The process will begin with money market funds. Fund units will remain outstanding during the interim payment stage and will be redeemed when final liquidation payments are made.

The board also set liquidation priorities for funds established by A1 Capital, Bulls and Pardus portfolio management companies.

Money market funds will be liquidated first, with other funds processed in descending order of investor numbers.

Once liquidation is completed, funds outside the liquidation process whose trading was suspended under the board’s Sept. 17 decisions may reopen simultaneously across all distribution channels for purchases and/or sales.

The founding portfolio management companies will determine reopening dates and trading conditions, taking into account portfolio composition, liquidity, market conditions and investors’ interests.

Meanwhile, Vice President Cevdet Yılmaz said the second meeting of the Fund Coordination Board, established by President Recep Tayyip Erdoğan, would be held on the morning of Oct. 2.

In a statement on social media, Yılmaz said a roadmap had been determined and that all relevant institutions were taking coordinated and concrete steps within their areas of responsibility.

He stressed that every stage of the process would be managed within the framework of the law, adding that the authorities’ main objective was to protect the rights of the public and investors while taking the most effective measures against manipulators and speculators who obtained unfair gains through unlawful transactions.

Yılmaz said Türkiye’s economic fundamentals and the structure of its capital markets remained strong, adding that the country’s capital markets would emerge stronger once problems affecting a limited segment of the fund industry were resolved.

Separately, the SPK announced that “Voluntary Return Accounts” had been opened at Birleşik Fon Bankası on behalf of the Savings Deposit Insurance Fund (TMSF) for individuals willing to voluntarily return excessive profits obtained from share sales conducted before the liquidation decisions affecting investment funds.

The regulator said the amounts deposited into the accounts would be allocated solely to the liquidation assets of the relevant fund and could not be transferred to another fund or account.

The funds will be transferred to state-owned Ziraat Bankası and private lender İşbank, which have been appointed to carry out the liquidation process, and will be used for payments to investors holding participation shares in the affected funds.