Treasury and Finance Minister Mehmet Şimşek said on Sept. 28 that Türkiye would continue taking measures to meet market liquidity needs and protect the financial system and real economy as the investigation into the fund crisis continued.
Writing on social media, Şimşek said legal proceedings against those involved in market-disrupting transactions were continuing.
“No action will be taken against individuals and companies that have no connection with these activities,” he said.
Şimşek said protecting investment, employment, production and export capacity was a priority. His ministry was working with the Justice Ministry to safeguard fund investors’ legitimate rights, he added.
Seven more suspects were detained the same day in an investigation involving Destek Yatırım Bankası and Özata Denizcilik.
Before the latest detentions, 51 suspects had been remanded in custody in the wider investigation.
Istanbul prosecutors have also lifted asset freezes on 45 companies and 19 funds following a new SPK assessment. Measures against 42 individuals remain in force as the investigation into suspected money laundering and capital markets violations continues.
The Capital Markets Board (SPK) ordered the liquidation of 131 funds run by seven asset managers on Sept. 17. The funds have 455,758 investors, according to central securities registry data cited by the regulator.
Şimşek is expected to brief the Cabinet on Sept. 28, with technical meetings later in the week to discuss repayment arrangements.
One proposal would prioritize money market fund investors, followed by equity fund investors and then hedge fund investors. The approach would give precedence to funds whose assets can be readily converted into cash.
A separate proposal to pay investors with holdings of 1 million Turkish Liras or less first would reportedly require legislation and has raised concerns over its constitutionality.
İşbank is handling the liquidation of Tera Portföy’s funds, while Ziraat Bank is responsible for those managed by Pusula, Hedef, Atlas, A1 Capital, Pardus and Bulls Portföy.
The banks will sell assets according to market and liquidity conditions and transfer proceeds to investors’ custody accounts in proportion to their holdings. Investors do not need to apply separately.
The SPK has extended the maximum liquidation period from three months to six, while saying the process could be completed earlier if conditions allow.
In a Sept. 28 clarification, the regulator said all purchase and sale orders submitted through the TEFAS fund trading platform on Sept. 17 for the affected funds had been cancelled. Investors whose orders were cancelled will receive liquidation proceeds in proportion to their fund holdings.
Orders submitted on Sept. 16 or earlier that went unfulfilled because a fund defaulted or failed to announce a price are also covered by the liquidation process, the SPK said.
