The legislative and regulatory infrastructure of Turkey has been undergoing rapid and significant changes for a while now. While certain regulators, like Tobacco and Alcohol Markets Regulatory Authority, are ceased to be independent bodies and turned into branches of related ministries or governmental bodies, new regulators are also being established with presidential decrees and certain duties, authorities and functions of the ministries are transferred to these new regulators.
The latest link in the chain is the establishment of Insurance and Private Pension Regulatory and Supervisory Authority (the "Authority") with the presidential decree of October 18th.
The Authority will be headquartered in Istanbul and it will be autonomous both administratively and financially. That being said, the decree explicitly states the related ministry for the Authority is the Ministry of Treasury and Finance.
Duties and Responsibilities of the Authority
The Authority will regulate and supervise the insurance and private pension markets in Turkey. Furthermore, the Authority will also continue to fulfill the duties and functions of the Insurance General Directorate and Insurance Supervisory Board which were previously under the Ministry of Treasury and Finance but now ceased to be with the same presidential decree.
The duties and responsibilities of the Authority would be to;
- Fulfill the duties and responsibilities under various legislative instruments regarding insurance and private pension markets,
- Prepare, enforce and supervise and encourage the enforcement of primary and secondary legislations regarding insurance and private pension markets,
- Take, enforce and supervise and encourage the enforcement of measures to develop insurance and private pension practices in Turkey and to protect the insured persons and participants to the system,
- Investigate and supervise the undertakings that operate in insurance and private pension markets,
- Prepare consolidated reports regarding insurance, private pension and other financial markets,
- Conduct research and provide opinions regarding legislations and enforcement related to insurance and private pension markets.
The Decisions of the Authority
The decision making body of the Authority is the Insurance and Private Pension Regulatory and Supervisory Board (the "Board"). The Board consists of 5 members; 1 president, 1 vice president, and 3 board members. The President of Republic of Turkey appoints all of the Board members. The decision quorum for the Board is the affirmative vote of at least 3 members. All of the decision of the Board must be reasoned and published on the web-site of the Authority.
Finally, the President of the Authority will directly assign the task force for all investigations/reviews of the Authority.
The regulatory landscape in Turkey is rapidly changing. Establishment of the Authority is the latest development that is expected to have significant impact on the insurance and private pension sectors. Given that the duties and responsibilities of the Authority is broad and generic, the enforcement priorities and thus the impact of the Authority to the enforcement remains to be seen.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.