Turkey's Banking Regulation and Supervision Agency
("Agency") has amended regulations governing asset
management companies. Changes effect establishment principles,
fields of activity, operating licences, amending articles of
association, share transfers, corporate management and information
system. The Regulation Amending the Regulation on Principles
Regarding Establishment and Activities of Asset Management
Companies ("Amendment Regulation") was published in
Official Gazette number 29644 on 5 March 2016, entering into effect
on the same date.
Significant amendments made by the Amendment Regulation
A minimum amount of paid-up capital is required during
establishment of asset management companies. The amount increases
from TRY 10,000,000 to TRY 20,000,000. Asset management companies
must comply with this requirement by 31 December 2017.
If the documents required from foreign nationals for
establishment and operation licenses cannot be obtained due to the
absence of any authority or system in their country of residence,
the Agency will now certify this situation with documents obtained
from the authorities of the relevant country. If certification is
not possible, the license applicant must make a written declaration
in this regard.
The Banking Regulation and Supervision Board
("Board") will grant operating licence to asset
management companies, giving consideration to:
Whether the capital is paid in cash and free of any
The company's ability to conduct the planned
Establishment of appropriate service units alongside internal
control mechanisms, accounting, data processing and reporting
Whether sufficient personnel strength is established for these
bodies and whether appropriate job descriptions, duties and powers
are determined for these employees.
Board permission is now required for:
Change of control.
Issuing new privileged shares.
Establishing privileges on existing shares.
Establishing usufruct rights.
Board permission is no longer required to transfer shares with
Notification periods for general managers and board members of
asset management companies increase from seven days to one month.
Notification procedures are outlined in detail.
Regulations are introduced for establishing systems for
internal control, information systems and risk management. Asset
management companies must comply with these regulations by 31
Several changes are introduced regarding fields of activity for
asset management companies.
Financial statements and statistical data must now be presented
to the Agency within requested periods and via requested
Grounds for cancelling operating licences have expanded. If an
asset management company does not rectify its situation within the
three month period granted by the Agency, the Board has discretion
to cancel the operating licence, giving consideration to certain
Please see this link for the full text of the
Amendment Regulation (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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