Türkiye establishes fund liquidation board chaired by vice president

The Communications Directorate announced on Tuesday that Türkiye has established a new Fund Coordination Board chaired by the vice president to oversee investment fund liquidations and safeguard investor rights, following a high-level meeting chaired by President Recep Tayyip Erdogan. The decision emerged from discussions with economic officials convened to assess recent capital market developments.

Investor protection

President Erdogan stated that authorities would prioritize careful liquidation of the funds alongside strict adherence to capital market regulations ensuring fair and expedited payments to investors, according to the statement. The newly formed board will supervise the process with specific regard to investors' legitimate rights and the broader public interest, while the State Audit Board — at Erdogan's directive — has launched examinations of recent investment fund transactions.

Payment roadmap

The Capital Markets Board presented a comprehensive roadmap for disbursing payments to investors whose entitlements have been verified, though distributions will depend on the underlying assets and liquidity of the funds undergoing liquidation. Officials also briefed the president on the ongoing transfer of Katilimevim and Birevim savings finance companies alongside Iktisat Participation Bank to Türkiye Emlak Participation Bank.

Regulatory tightening

The Communications Directorate indicated that additional administrative and legal measures would be introduced to strengthen oversight of capital markets and prevent similar problems from recurring. Officials noted that the State Audit Board's examination of recent transactions continues alongside the Capital Markets Board's preparation of payment schedules.