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The New Era for Mutual Funds - I
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Att. Ali Sami Er
Structural changes will be observed this year in the mutual funds
market that has risen to 34 billion TL, excluding pension funds
1
, in
line with the new regulations of the Capital Markets Board
(“CMB”). Communiqué regarding the Principles of Mutual Funds
(“Communiqué”) numbered II-52.1 entered into force on 01.07.2014;
however, a mutual fund with the founder being a portfolio management
company (“PMC”) has not yet been established, and most of the funds
have to be restructured. This article sheds light on the new settlement
and adaptation applications according to the Communiqué and the
CMB’s resolutions.
The Adaptation Applications of Current Funds
The system of mutual funds has been completely changed by the
Communiqué. Under the new terms, the founders are restricted to the
PMC’s. The management service shall be provided only by the PCM’s,
as well. As portfolio custodian, aside from Takasbank, the investment
companies who have portfolio custody competence, and whose paid-in
capital is 20 million TL, shall be determined.
Different from the old terms, by transitioning to the open-end fund
structure, they are now established in the form of umbrella funds
through the scope of the funds’ by-laws
2
, offering circular
3
for each
issue according to need, and key investor information document
4
.
Thus, parallel to the European Union regulations, highest level of dis-
CAPITAL MARKETS LAW
161
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Article of November 2014
1
Turkish Capital Markets November Review 2014.
2
Its minimum qualifications are noted in Communiqué Annex-1.
3
Its minimum qualifications are noted in Communiqué Annex-2.
4
Its minimum qualifications are noted in Communiqué Art. 12.