Draft Bill for Liquidated Investment Funds Clarified
Details of the draft legislative regulation prepared for investment funds liquidated by the Capital Markets Board decision have become clear.
The draft bill regulating the processes of investment funds decided to be liquidated by the Capital Markets Board and the recovery of unlawfully extracted assets has gained clarity. The new regulation legally guarantees the fair payment of fund assets in the liquidation process to the rightful beneficiaries.
Scope and Purpose of the Bill
The draft bill prepared for investment funds liquidated in line with the decisions of the Capital Markets Board has been finalized. This proposal does not establish a general liquidation regime outside of these problematic funds in question, but is made applicable only to specific funds included in the scope.
Liquidation Process and Determination of Beneficiaries
Liquidation transactions will be carried out by banks and institutions appointed under the supervision of the CMB. Rightful beneficiaries will be determined by reconciling the records of the MKK, Takasbank, TEFAS, and portfolio custody and distribution institutions. Payments will not be made to individuals determined to have committed acts contrary to the legislation.
Net Investment Amount and Principal Interim Payment
In cases where fund assets are insufficient to make full payments, the net investment amount will be calculated by the MKK. Interim payments can be made to investors up to the net amount for those whose net investment amount is below 1 million liras, and a maximum of 1 million liras for those with 1 million liras and above.
Personal Liability of Responsible Parties and SDIF Powers
Values transferred to parties associated with transactions contrary to the legislation will be considered to have caused damage to the fund. The portfolio management company will be held personally responsible first for the losses, and if uncollectible, real and legal persons determined by the CMB will be held personally responsible. The SDIF will have the authority to initiate forced execution and follow-up proceedings.
Recovery Account Regulations
All revenues collected and obtained from sales will be tracked under a special Recovery Account opened for each fund within the SDIF. These amounts cannot be seized and will be used solely for payments to be made to fund shareholders.