The ruling Justice and Development Party (AKP) submitted a nine-article bill to parliament on Oct. 9 setting rules for fund liquidations and allowing advances of up to 1 million Turkish Liras to eligible investors.
AKP parliamentary group leader Abdullah Güler said repayments would be financed through the funds’ assets and money recovered from those responsible for losses, without Treasury contributions or other public funding.
The proposal covers funds ordered into liquidation by the Capital Markets Board (SPK) on Sept. 17 whose liquidation remains incomplete when the legislation takes effect.
Advances would be calculated from investors’ actual cash contributions and withdrawals, without an inflation adjustment.
Payments would depend on available cash, with the SPK authorized to determine how to distribute insufficient funds.
“This is not a sum to be paid unconditionally or upfront to everyone, nor a promise of final compensation,” Güler said.
Under the proposal, records held by the Central Securities Depository (MKK), Takasbank and custody and distribution institutions would be reconciled to establish investors’ entitlements.
Asset sales would remain under SPK supervision, with provisions intended to preserve their value during liquidation.
The Savings Deposit Insurance Fund (TMSF) would pursue amounts the SPK determines are owed by those responsible for fund losses.
Recovered money would be held in separate accounts for each fund and used for liquidation and investor repayments.
The bill would also allow the voluntary return of gains exceeding market benchmarks from transactions involving artificially priced fund units or shares.
People and institutions identified by the SPK as having participated in market manipulation, insider dealing or related abuses would be excluded from payments.
Güler said the Plan and Budget Commission was expected to consider the proposal next week, with a debate in the General Assembly to follow.
Meanwhile, the Fund Coordination Board, chaired by Vice President Cevdet Yılmaz, reviewed preparations for the proposed advances at its fourth meeting, the Communications Directorate said on Oct. 9.
Officials also discussed ongoing liquidations and coordination between institutions handling the return of excessive gains.
Separately, Family and Social Services Minister Mahinur Özdemir Göktaş said she had filed criminal complaints against lawmakers Ümit Özlale, Cemal Enginyurt and Ali Mahir Başarır over allegations linking her family to the funds.
Özlale had questioned whether her father had traded in two of the funds.
Göktaş denied any family involvement, saying the records concerned another person with the same name.
