New Guide and Regulations for Investment Funds from the Capital Markets Board
A new guide altering the operations of hedge funds and money market funds has been published. Companies' fund issuance limits and minimum initial capitals have been redefined.
With the new investment fund guide published by the Capital Markets Board, significant changes have been implemented in the operations of hedge funds and money market funds.
Scope of the New Fund Guide
The Capital Markets Board has shared the new fund guide regarding the operations of investment funds, primarily hedge funds and money market funds, with the public. These comprehensive regulations were announced via its official website.
Fund Limit Based on Number of Managers
With the new regulation, the number of hedge funds that portfolio management companies can issue has been limited to the number of portfolio managers employed within the company. Private funds were also included within this scope.
Compliance Process and Capital Increase
Existing companies with hedge funds exceeding this specified limit have been granted until June 30, 2029, to comply with the regulation. In addition, the minimum initial capital for portfolio management companies has been set between 250 million TL and 500 million TL, depending on the authorizations held.
Share Transfers and Board Approval
The off-exchange sale of shares exceeding certain partnership ratios within companies during a 12-month period has been restricted. For share transfers exceeding the specified ratios, preparing a share sale information form and submitting it to the Board for approval has been made mandatory.
Responsibilities and Exceptional Circumstances
Transfer transactions will not be permitted to be subject to special orders on the Exchange or TSP (Turkish Capital Markets Association) transactions without an approved information form being drawn up. The responsibility for the transactions will belong to the transferring shareholder and the intermediary investment institutions. On the other hand, off-exchange sales made before August 29, 2026, will not be included in the calculations.