Türkiye’s law on investment funds ordered into liquidation was published in the Official Gazette (Resmî Gazete) on Tuesday and took effect immediately. It opens the way for investors whose money has been frozen since mid-September to receive interim payments of up to 1 million lira each.
Law No. 7596, on certain investment funds whose liquidation has been decided, has nine articles and appeared in Gazette issue 33413. Parliament passed it on 22 October. It covers funds that the Capital Markets Board (SPK) ordered into liquidation on 17 September 2026 and that had not been fully wound up by the time the law was published, Ekonomim and Karar reported.
Who gets what
Investors whose net investment is below 1 million lira can receive up to that amount, and those with 1 million lira or more can receive up to 1 million lira. The payments come from each fund’s available cash and will be deducted from what the investor finally receives when liquidation ends. Fund units are only redeemed at final liquidation.
If a fund does not have enough cash, the SPK can pay the investors with the smallest net investments first, or set a minimum payment for everyone. If the fund’s proceeds fall short, investors’ money in and out of the fund will be adjusted using the average of TÜİK’s consumer and domestic producer price indices. The Central Registry Agency (MKK) will calculate each investor’s net investment.
The law also covers investors whose buy or sell orders sent through TEFAS, the national fund trading platform, on or before 17 September could not be carried out. They are treated as unitholders, and their units remain blocked. Anyone who profited through market manipulation, insider trading or fraud is excluded from payments. Payment dates have not been set yet: the SPK will decide which funds are covered and the procedures to follow.
Recovering losses
The portfolio management company that set up or ran a fund is liable for its losses in the first place. If it cannot pay, the SPK can name other individuals and companies as liable, and leaving a post does not remove that liability. The SPK will report losses to the Savings Deposit Insurance Fund (TMSF), which can collect from those liable through public debt-collection procedures.
Assets seized in the related investigations can be moved to a separate TMSF account for each fund and used only for that fund’s investors. These accounts cannot be seized or pledged. For funds that have already been fully liquidated, recovered money will be paid out through the Investor Compensation Center (YTM). People who redeemed units at inflated prices before the funds were frozen can voluntarily return the excess. Finance Minister Mehmet Şimşek has separately said gains above 10 million lira are to be refunded.
Two more managers suspended
Late on Monday, the SPK suspended the capital-market activities of Tera Portföy and Pusula Portföy under Article 97 of the Capital Markets Law, NTV reported. It also ordered the liquidation of their remaining securities, real estate and venture capital funds, naming İş Bankası and Ziraat Bankası as liquidators. Some of the two firms’ funds were already among those frozen on 17 September. Karar noted that the funds ordered into liquidation on Monday are not automatically covered by the new law.
If you are a foreign resident with Turkish investment funds through a local bank or broker, ask your provider whether any of your funds are affected. Our earlier report on payouts made so far has more background, and our cost of living guide covers everyday finances.
Sources
- Fon kanunu Resmi Gazete’de yayımlanarak yürürlüğe girdi (NTV)
- Fon kanunu yürürlüğe girdi: Ödemeler ne zaman başlayacak? (Ekonomim)
- Fon Tasfiye Kanunu Resmî Gazete’de yayımlandı: 1 milyon liraya kadar ödeme (Karar)
- SPK’dan Tera Portföy ve Pusula Portföy kararı: Faaliyetleri geçici olarak durduruldu (NTV)
Photo: Thomas Steiner / CC BY-SA 2.5, via Wikimedia Commons
