Cevdet Yılmaz: Bill on extraordinary fund liquidation is before parliament

Turkish Vice President Cevdet Yılmaz said ordinary liquidations of troubled investment funds are proceeding quickly, legislation for extraordinary liquidation is before parliament, and efforts are underway to return unjust and excessive gains to the system and pay them to investors.

Turkish Vice President Cevdet Yılmaz, who chairs the Fund Coordination Board, made a statement on the process concerning troubled investment funds. "Ordinary liquidations are being carried out quickly, and the legal arrangements for extraordinary liquidation are on our parliament's agenda," Yılmaz said.

"Intensive and multifaceted efforts are being made to return unjust and excessive gains to the system and to pay them to investors," he said. The statement gave no details on the amount or timing of payments to investors.

"Whoever has carried out or carries out unlawful transactions must undoubtedly face the consequences," Yılmaz said. "Investing in funds, stocks or other capital market instruments is not a crime. Disrupting the market through unlawful transactions, fraud and manipulation in these areas, however, is a crime."

Cevdet Yılmaz at a press conference with Türkiye's economy officials

Yılmaz stressed that the measures should not be perceived as targeting the funds that make up more than 90 percent of the market and operate in line with the rules. "We are acting with an approach that does not harm the body while liquidating diseased structures," he said.

Liquidation completed in 66 funds

Türkiye's Capital Markets Board (SPK) decided on Sept. 17 to liquidate 131 funds belonging to seven portfolio management companies after detecting unusual price movements in shares linked to some funds.

According to a statement by the Presidential Communications Directorate on Oct. 18, state lender Ziraat Bank has completed liquidation transactions for more than 45,000 people in 66 funds managed by the portfolio management companies A1, Bulls and Pardus, reducing the number of funds to be liquidated from 131 to 65.

A bill aimed at ensuring that the liquidation of certain funds is carried out in a fair, transparent and effective manner was approved by parliament's Planning and Budget Committee on Oct. 14. It is expected to be debated in the General Assembly this week.

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