Approval of regulations on liquidation of investment funds and payments to investors in committee
A new legislative proposal determining the procedures for the liquidation processes of investment funds and payments to be made to investors has been accepted in the parliamentary committee.
The proposal containing regulations regarding the liquidation of investment funds and payments to be made to investors passed the TBMM Plan and Budget Committee, leaving behind an important milestone on the path to becoming law.
Operation of the Liquidation Process
The provisions of the proposal were prepared in a way that does not establish a general or permanent liquidation and responsibility regime regarding other investment funds other than those specified.
Supervision Under CMB Oversight
Within the scope of the regulation, the liquidation of funds will be carried out under the supervision and audit of the Capital Markets Board by institutions authorized for this duty.
Principles of Conversion to Cash and Payment
In the event that the distributable cash obtained as a result of converting the fund assets into cash proves insufficient, the net investment amount will be calculated by MKK by applying indexing.
Interim Payment Limits
For investors whose net investment amount is below 1 million Turkish Liras, an interim payment can be made up to this amount, and for those with 1 million Turkish Liras and above, a maximum interim payment of 1 million Turkish Liras can be made.
Cases Where No Payment Will Be Made
No payments will be made from the liquidation and recovery account to individuals determined to have committed acts contrary to the provisions on market-disruptive actions, insider trading, and market manipulation.
Liability and Recovery
The portfolio management company will be primarily held responsible for the values unlawfully removed from the fund assets and for the damages, and these asset values will be included in the system.