Turkey's Capital Markets Board has updated a range of
operational, disclosure and notification requirements for
intermediary institutions and portfolio intermediary institutions.
Related requirements for position limits, guarantees, reporting and
service agreements are also updated with respect to derivative and
leveraged transactions by investment enterprises.
The Communique Amending the Communique on Principles Regarding
Operating Permit to be Obtained by Investment Enterprises and
Principles Regarding Investment Services, Activities and Ancillary
Services with no III-37.1 ("Amendment Communique") was
published in Official Gazette number 29593 on 14 January 2016,
entering into effect on the same date.
Significant amendments by the Amendment Communique include:
Derivative transactions by investment and development banks are
included in the definition of operation intermediary activities and
portfolio intermediary activities, in certain conditions.
Professional clients can now make written requests that the
prohibition on client damages not exceeding the investor guarantee
should not apply to them for leveraged transactions.
Intermediary institutions become subject to new provisions
regarding position limits and guarantees for derivative
The Capital Markets Board becomes authorized to change the
leverage ratio in leveraged transactions.
Client guarantees in leveraged transactions should now be
reported to and audited by central exchange institutions.
Intermediary institutions cannot provide individual portfolio
management or investment consultancy services to their leveraged
Intermediary institutions must now:
Obtain a statement from general clients about leveraged
Report special circumstances to the Capital Market Board
Notify the Capital Market Board Association about platforms,
programs, modules and attachments that they use in over-the-counter
Obtain the client's approval to change the price, quantity
and other aspects of a client's leveraged sale and purchase
Investment enterprises must now determine the differences
between the sale and purchase prices in portfolio intermediary
activities, in accordance with market conditions.
Investment enterprises must now publically disclose sale and
purchase price proposals through broadcasting corporations
determined by the Capital Market Board Association. The Association
should also be notified about differences between the purchase and
sale prices in leveraged transactions.
Several changes are made regarding transmission of electronic
New mandatory elements are introduced for investment
consultancy framework agreements.
Please see this link for the full text of the
Amendment Communique (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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