On 9 October, MPs from Turkey\u2019s AK Party tabled a bill in parliament concerning settlements with unit-holders of funds whose liquidation has been initiated by the regulator, the SPK. The bill provides for interim payments of up to 1 million Turkish lira per investor in each fund, although the actual amount will depend on the funds available at the time of liquidation.<\/p>\n
Briefly about the main points<\/strong><\/p>\n The draft bill concerns investment funds in respect of which the Turkish Capital Markets Board (SPK) has issued a liquidation order. It sets out the procedure for interim settlements with unit-holders pending the completion of the liquidation process.<\/p>\n An investor can receive up to 1 million lira from each fund<\/strong>, where he holds shares. If the net value of his investment is below this threshold, the scheme provides for the payment of the entire amount \u2014 but only within the limits of the available liquidation fund.<\/p>\n If there are insufficient funds to cover the payments, it is proposed that they be distributed proportionally amongst the investors. This payment will be an interim one and must be taken into account in the final settlement following the liquidation.<\/p>\n On 1 October, the SPK approved interim distributions for unit-holders of the Tera, Pusula, Atlas and Hedef funds. The regulator clarified that the 1 million lira limit applies separately to each investor in each fund, rather than to all their investments combined.<\/p>\n The draft law also instructs the Turkish Central Securities Depository (MKK) to determine the net amount of investments for liquidation settlements. To this end, actual inflows and outflows of funds, indexed to changes in consumer prices and the domestic producer price index, must be taken into account.<\/p>\n It is proposed that the calculation be carried out on a \u00abfirst in, first out\u00bb basis. Inflation indexation relates to the determination of the net amount in the final liquidation settlements, rather than to the formula for the interim payment itself up to 1 million lire.<\/p>\n The project places primary responsibility for the repayment of funds owed to investors on the portfolio management company. If it is not possible to recover the funds from it, the SPK will be able to identify other responsible individuals or legal entities.<\/p>\n The document names, among those potentially liable, directors, associated persons, controlling shareholders and third parties in whose favour assets may have been siphoned off through gratuitous or sham transactions. Abdullah G\u00fcler, chair of the AK Party\u2019s parliamentary group, stated that dismissal from office does not absolve individuals of responsibility for their previous actions.<\/p>\n Should the bill be passed, the Turkish Savings Deposit Insurance Fund (TMSF) will manage certain assets seized in criminal proceedings if it is not possible to return them directly to the fund. The draft law also allows the TMSF to sell or liquidate such assets without waiting for a court ruling, and to account for the proceeds separately for each fund.<\/p>\n 17 September SPK has suspended trading and commenced the liquidation of Fund 131<\/strong> seven management companies following disruptions to the redemption of units in mid-September. The regulator appointed \u0130\u015f Bankas\u0131 as the liquidator for the Tera funds, and the state-owned Ziraat Bankas\u0131 as the liquidator for the funds of the remaining six companies.<\/p>\n The procedure was originally scheduled to be completed within three months, but the SPK extended the deadline to six months. The AK Party\u2019s draft bill applies specifically to these funds in liquidation, rather than to the entire Turkish investment fund market.<\/p>\n As of 1 October, Turkish media, citing the Anadolu Agency, reported that at least 61 people had been arrested as part of the investigation. The Minister of Justice had previously described the situation as a wider \u00abPonzi-like scheme\u00bb, though this is his assessment and the investigation is ongoing.<\/p>","protected":false},"excerpt":{"rendered":" The AK Party has tabled a bill on payments to unit-holders of liquidated funds: up to 1 million lira, subject to available funds.<\/p>","protected":false},"author":207433346,"featured_media":32594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_description":"AK Parti \u0432\u043d\u0435\u0441\u043b\u0430 \u0437\u0430\u043a\u043e\u043d\u043e\u043f\u0440\u043e\u0454\u043a\u0442 \u043f\u0440\u043e \u0432\u0438\u043f\u043b\u0430\u0442\u0438 \u043f\u0430\u0439\u043e\u0432\u0438\u043a\u0430\u043c \u043b\u0456\u043a\u0432\u0456\u0434\u043e\u0432\u0430\u043d\u0438\u0445 \u0444\u043e\u043d\u0434\u0456\u0432: \u0434\u043e 1 \u043c\u043b\u043d \u043b\u0456\u0440 \u0443 \u043c\u0435\u0436\u0430\u0445 \u0434\u043e\u0441\u0442\u0443\u043f\u043d\u0438\u0445 \u043a\u043e\u0448\u0442\u0456\u0432.","rank_math_title":"\u0422\u0443\u0440\u0435\u0447\u0447\u0438\u043d\u0430 \u0433\u043e\u0442\u0443\u0454 \u0432\u0438\u043f\u043b\u0430\u0442\u0438 \u0456\u043d\u0432\u0435\u0441\u0442\u043e\u0440\u0430\u043c \u043b\u0456\u043a\u0432\u0456\u0434\u043e\u0432\u0430\u043d\u0438\u0445 \u0444\u043e\u043d\u0434\u0456\u0432","rank_math_focus_keyword":"\u0432\u0438\u043f\u043b\u0430\u0442\u0438","td_subtitle":"","subtitle":"","footnotes":""},"categories":[805618],"tags":[805624],"class_list":["post-32595","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economics","tag-805624"],"_links":{"self":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts\/32595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/users\/207433346"}],"replies":[{"embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/comments?post=32595"}],"version-history":[{"count":1,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts\/32595\/revisions"}],"predecessor-version":[{"id":32596,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts\/32595\/revisions\/32596"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/media\/32594"}],"wp:attachment":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/media?parent=32595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/categories?post=32595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/tags?post=32595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
How it is proposed that interim payments be made<\/h2>\n
The limit will apply separately to each fund<\/h2>\n
Who may be held liable for payments<\/h2>\n
The crisis has affected 131 funds belonging to seven companies<\/h2>\n