99 CAPITAL MARKETS LAW Conclusion Due to the development of capital markets, the investors tend to seek professional support for the management of their assets and, therefore, apply to PMCs. The main activities of PMCs are to establish and manage investment funds and provide portfolio management services. The legal nature of a portfolio management agreement is deemed as a contract of mandate. Therefore, PMCs are obliged to protect the interests of the funds under their management, the savers, and other customers while carrying out their activities. PMCs cannot guarantee any income. However, PMCs are directly liable to the client for all transactions that breach the contract, internal statute, prospectus, articles of association, capital market legislation and general provisions, and which have been carried out by the portfolio managers specified in the agreement, as well as any damages they may inflict on their clients due to their acts that are contrary to the duty of care and loyalty.
RkJQdWJsaXNoZXIy MjUzNjE=