Türkiye’s Investor Compensation Center (Yatırımcı Tazmin Merkezi, YTM) has started the compensation process for clients of Tera Yatırım Menkul Değerler, the brokerage whose licences were cancelled by the Capital Markets Board (SPK) this week, according to a YTM announcement reported on Wednesday by Bloomberg HT and 12punto.
The SPK decided on 27 October, in its weekly bulletin no. 2026/77, to cancel all of the brokerage’s activity permits and its authorisation certificate, to compensate its investors and to wind the firm down through gradual liquidation. We covered that decision in our report on the SPK licence cancellation.
YTM takes over the brokerage
YTM is the body that steps in when a licensed brokerage in Türkiye can no longer meet its obligations to clients. According to the announcement, YTM has carried out the duties and powers of the brokerage’s statutory bodies since 27 October and will do so until the liquidation is completed.
Compensation covers claims arising when the firm fails to pay out cash it held or managed for investors, or to deliver capital market instruments, in connection with investment services and ancillary services.
How claims will work
YTM said claims will be handled under procedures to be announced on its website, ytm.gov.tr, where the application form will also be published. The main steps it set out are:
– YTM will prepare a list of creditors and the amounts owed to them. – Investors can object to their entry within 30 days of the date the list is announced. – Procedures for investors whose claims do not appear on the list will be announced separately. – Payments are to be made within three months of the list being announced. Where necessary, this can be extended by up to three more months with SPK approval. – No interest will be added to cash claims for the period between the compensation decision and the payment date. – Investors who do not submit their forms in line with the rules will not be paid until the missing items are corrected.
The announcement did not give a date for the creditor list, an application deadline or a cap on individual payments.
Separate from the fund payouts
The YTM process concerns clients of the brokerage, Tera Yatırım Menkul Değerler. It is separate from the liquidation of investment funds managed by Tera Portföy and other portfolio firms, where interim payouts of up to 1 million lira per investor are due to start on Friday, 30 October, as set out in our report on the fund liquidation payouts.
Foreign residents who held accounts at the brokerage should keep their account statements and watch the YTM website for the creditor list and the application form.
Sources
- YTM’den Tera Yatırım Menkul Değerler’e ilişkin tasfiye süreci duyurusu (Bloomberg HT)
- Tera Yatırım yatırımcıları için tazmin süreci başladı (12punto)
Photo: Derrick Brutel / CC BY-SA 2.0, via Wikimedia Commons
