Fund Law Takes Effect: Interim Payments for Investors

News: Gökhan Turhan

Fund Law Enters into Force After Publication in Official Gazette

Law No. 7596 on Certain Investment Funds Ordered to Be Liquidated was published in the Official Gazette dated October 27, 2026, issue No. 33413, and entered into force. Adopted on October 22, 2026, the law regulates investment funds whose liquidation was ordered by the Capital Markets Board (CMB) on September 17, 2026, and had not been completed as of the publication date.

The legislation aims to ensure that the liquidation of these investment funds is conducted fairly, transparently and efficiently. It also establishes procedures for recovering assets unlawfully removed from fund portfolios and collecting losses from those responsible. The law sets out the principles governing the distribution of recovered assets to eligible fund shareholders.

Interim Payments of Up to TRY 1 Million for Investors

Article 4 of the law allows interim payments to investors under certain conditions. For funds designated by the CMB, investors whose net investment amount is below TRY 1 million may receive interim payments up to that amount. Investors with net investments of TRY 1 million or more may receive interim payments of up to TRY 1 million.

Interim payments cannot exceed the portion of the investor’s net investment amount calculated without indexation. For funds other than money market funds, the payment also cannot exceed the total value of the fund units held in the investor’s account, calculated as of the end of the previous day.

If the available distributable cash is insufficient to cover all calculated entitlements, the CMB may authorize payments starting with investors who have the lowest net investment amounts. Alternatively, it may establish a minimum interim payment applicable to all investors.

No fund units will be redeemed in exchange for interim payments. The units will be redeemed during the final liquidation payments.

Net Investment Amounts to Be Calculated

Under the law, the calculation of investors’ entitlements from liquidation proceeds will take into account cash deposits into and withdrawals from the funds. The calculation will use the arithmetic average of changes in the Consumer Price Index (CPI) and the Domestic Producer Price Index (PPI), as published by the Turkish Statistical Institute (TurkStat), up to the liquidation date.

The Central Registry Agency (MKK) will calculate investors’ net investment amounts. Fund share ownership will be determined separately for each fund and account by reconciling MKK records with those maintained by the organizations responsible for liquidation.

Recovery of Fund Losses from Responsible Parties

Article 5 sets out provisions for recovering assets unlawfully removed from fund portfolios. Assets transferred to related parties, controlling shareholders, managers or third parties through transactions that lack a genuine economic purpose in the fund’s interests, or that involve sham or uncompensated arrangements, may be treated as assets unlawfully removed from the fund.

The portfolio management company that established and/or managed the fund will be primarily responsible for the resulting losses. If the losses cannot be recovered in full or in part from the company, or it becomes clear that recovery is not possible, individuals and legal entities identified by the CMB as responsible may be held personally liable, including those found to have acted together with them.

Following notification by the CMB, the Savings Deposit Insurance Fund (TMSF) may initiate collection and enforcement proceedings to recover the assets. Individuals will not be exempt from liability for transactions and decisions made during their period of responsibility merely because they have since left their positions.

Recovered Assets to Be Tracked in Separate Accounts

Amounts collected or returned under the law will be recorded in separate subaccounts for each fund maintained by the TMSF. These funds may be used exclusively for the liquidation of the relevant investment fund and payments to its shareholders. They cannot be used for other purposes or seized, even to satisfy public receivables.

After mandatory expenses are deducted, recovered amounts may be transferred to the organization responsible for liquidation or, where liquidation has been completed, to the Investor Compensation Center (YTM) for distribution to eligible shareholders. Payments will be made in proportion to each investor’s fund unit holdings.

Under Article 8, the law takes effect on the date of its publication, October 27, 2026, with retroactive effect from September 17, 2026.

For the text of Law No. 7596, published in the Official Gazette dated October 27, 2026, and numbered 33413, please click here…

Kaynak: Official Gazette, October 27, 2026, Issue No. 33413, Law No. 7596.