The Plan and Budget Committee of the Turkish Grand National Assembly (TBMM) gave its approval to a law proposal concerning investment funds. The committee’s vote marked a formal step toward establishing a legal framework for the liquidation of funds that had not been wound up when the regulation came into force.
The approved text contains several core provisions. It allows for interim payments to investors during the winding-up process. It also defines the principles that will guide the recovery of any value that was taken out of the funds illegally. Finally, it regulates how losses and any recovered amounts will be distributed among the parties involved. Together, these rules are intended to create a process that is orderly, transparent and efficient.
One of the concrete measures in the proposal is the possibility of making interim payments up to one million lira to individual investors. By providing partial refunds while the liquidation is still underway, the law seeks to protect investor interests and maintain confidence in the fund industry. The committee emphasized that the protection of investors and the fair distribution of available resources are central goals of the legislation.
This mechanism aims to redress wrongdoing and to increase the pool of assets available for distribution to investors.
The proposal obliges the liquidation process to identify and reclaim any value that was extracted from the funds in breach of the law. It sets out the principles that will determine how such recoveries are calculated and verified. This mechanism aims to redress wrongdoing and to increase the pool of assets available for distribution to investors.
Beyond recovery, the law spells out how both losses and the assets that are reclaimed will be shared. It establishes a hierarchy for paying creditors, assigning liabilities and allocating any recovered value. The intention is to ensure that the outcome is perceived as fair and that the burden of any shortfall is allocated according to the rules set out in the proposal.
The legislative effort targets a specific group of investment funds. According to the proposal, the liquidation process is to cover 66 funds whose combined value amounts to 40.5 billion lira. This figure represents the total amount that the authorities aim to resolve through the new liquidation rules.
The funds in question have a substantial investor base. The proposal notes that 43,643 investors are associated with these funds. To date, payments amounting to 6.4 billion lira have already been made to those investors, leaving a remaining liquidation target of 34.1 billion lira.
The law ties the liquidation process to the oversight of the SPK. The SPK is assigned responsibility for overseeing the entire liquidation process, ensuring that the provisions for interim payments, asset recovery and distribution are carried out as prescribed. The committee’s approval sets the process in motion, with a focus on prioritizing small investors.