96 NEWSLETTER 2021 Conditions) that shall be applied to PMCs by analogy, the PMCs shall be established as joint stock companies, all of their shares shall be registered, their capital shall not be less than the amount that has been determined by the Board,2 and their shareholding structure shall be transparent. Moreover, pursuant to Article 44 (Conditions for Founders) that shall be applied to PMCs by analogy, the founders shall not be bankrupted, have not declared composition with creditors, and must not have a finalized sentence due to the crimes set forth under the CML. The main activities of PMCs, which have obtained the Board’s approval by fulfilling these conditions, are establishing and managing investment funds. Investment funds are defined under Article 52 (Investment Funds) of the CML as “the asset that is established by PMCs in conformity with the fiduciary ownership principles on the account of the savers, with money or other assets gathered from savers pursuant to the provisions of the CML in return for fund units, in order to operate the portfolios consisting of instruments and rights determined by the Board, and which have no legal personality”. The PMCs shall represent, manage or control the funds by protecting the rights of the savers. Pursuant to Article 53 of CML (Segregation of Fund Assets), the assets of the fund are segregated from the assets of the PMC. The PMCs may provide portfolio management services in addition to establishing and managing investment funds. Pursuant to Article 37 (Investment Services and Activities) of the CML, portfolio management is deemed as an investment service. PMCs are exclusively authorized to establish and manage investment funds. However, under Article 38 (Authorized Institutions that may provide Individual Portfolio Management Services) of Communiqué numbered III-37.1, portfolio management services may be provided by intermediary institutions and investment and development banks, as well. 2 Pursuant to Article 5/ç of the Communiqué on Principles Regarding Portfolio Management Companies andActivities of Such Companies, this amount has been determined as TRY 2,000,000.
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