The Article on “Responsible Governance Principles” Added to the Guidelines on Investment Funds
The Capital Markets Board Decision dated February 16, 2024 and numbered 11/255 (Board Decision) was published in the Capital Markets Board Bulletin dated 16.02.2024 and numbered 2024/11. Pursuant to the Board Decision, the Principles of Responsible Management (Principles) were added to the Guidelines on Investment Funds as Art. 13. Significant aspects of the Principles are summarized below:
- The purpose of the Principles is to encourage responsible investment of mutual fund assets for the purpose of creating long-term value for all stakeholders and sustainable benefits for the economy, environment and society.
- The Principles focus on “monitoring activities for investee companies”, “engagement activities with investee companies”, “cooperation activities with all relevant stakeholders”, “exercise of voting rights of assets in managed portfolios” and “incorporation of environmental, social and governance factors into responsible management policy”.
- Under the heading “Implementation Suggestions” for each principle, the article provides examples of approaches and methods that can be used in the implementation of the Principles.
- The implementation basis of the Principles shall be freely determined by the portfolio management companies, taking into account the corporate capacity and business strategy of the portfolio management companies, the investment strategies of the funds under management and similar factors specific to the portfolio management companies.
- The “Comply or Disclose” approach is taken as a basis for the management and supervision of the Principles. In case the Board of portfolio management companies decides not to formulate policies regarding the responsible management principles laid down within the framework of this approach, this decision must be disclosed to the public together with its justification.
- In addition, portfolio management companies are required to publicly disclose the responsible governance principles policy or the decision taken not to establish a policy and its justification by 31.12.2024 at the latest.
- The implementation of the principles set out in the responsible management principles policy by the portfolio management companies will be disclosed to the public within 60 days following each accounting period through annual reports to be standardized by the Board. The first report will be disclosed to the public as of 02.03.2026 at the latest, including the practices in 2025.
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