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New Brokerage Regulation
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Att. Ecem Cetinyilmaz
Introduction
The new Insurance and Reinsurance Brokerage Regulation (“New
Regulation”) entered into force through publication in the Official
Gazette dated 27 May 2015 and numbered 29368. The New Regulation
abrogated the former Insurance and Reinsurance Brokerage Regulation
(“Former Regulation”) which entered into force on 21 June 2008
1
.
According to the 1
st
provisional article of the New Regulation, brokers
shall be obliged to comply with the new provisions within one year as
of the publication date of such regulation. The Undersecretariat of
Treasury (“Treasury”) is authorized to extend this period of compli-
ance up to three months.
Shareholders and Directors
The New Regulation does not require any information or condi-
tions pertaining to the directors, real person shareholders and directors
of legal entity shareholders of legal entity brokers. Therefore, informa-
tion in this regard is not required to be submitted to the Treasury.
Nevertheless, the New Regulation mostly keeps the requirements
that real person and legal entity brokers must have as the same, except
for the condition of not being bankrupt. Accordingly, not being bank-
rupt is no longer a condition for conducting brokerage activities.
Prior Approval of the Treasury
The New Regulation does not require brokerage companies to
obtain prior approval of the Treasury for share transfers. As per the
MISCELLANEOUS
371
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Article of June 2015
1
Published in the Official Gazette dated 21 June 2008 and numbered 26913 and entered into
force on the same date.