The Legislation

Individual Pension Savings and Investment System Law

28.03.2001

There is a provision that the Capital Markets Board (CMB) is authorized to request termination of the portfolio management contracts of the portfolio managers who fail to show the necessary care and prudence in management of funds, and sign a portfolio management contract with other portfolio managers.

“Portfolio managers manage the fund portfolio. Portfolio managers must manage the portfolio in accordance with this law, Capital Markets Law No. 2499, fund bylaw, pension contract, and the provisions of other relevant legislation. The principles on the portfolio management service to be received must be established by a portfolio management contract between the company and the portfolio managers. (Amended final clause: article 5684/41 dated June 3, 2007) Portfolio management contracts must meet the minimum requirements set forth by the board.” "In cases such as failure to show due diligence in fund management by the portfolio managers, or breach of portfolio management principles by the board, or a weakening financial structure, the company may revoke the portfolio management contract and draw up a portfolio management contract with other portfolio managers approved by the board. In such circumstances, the board may also request the portfolio managers be replaced. The board must establish the procedures and principles on the portfolio management contract upon approval from the Undersecretariat.”

18.01.2019

Monitoring the operations of portfolio management companies is added to the duties of the PMC.

“(…) building an infrastructure for monitoring the operations of portfolio management companies related to pension mutual funds, and submitting the relevant reports…”

Decision of the Capital Markets Board of Turkey

30.05.2019

The CMB Policy Decision no. i-SPK.4632 s.kn.17.3.i (decision no. 32/756 dated May 30, 2019)

“It was resolved that Article ‘10.4 Assessment and Measurement of the Return on Pension Mutual Funds, and the Principles and Procedures Regarding the Incentives and Measures Applicable to Portfolio Managers’ be added to section ‘10. Other Principles’ of the ‘Pension Mutual Funds Guidelines’ that were accepted as the Policy decision no. i-SPK.4632 s.kn.17.3.i (decision no. 7/223 dated March 3, 2016) of the decision-making Body of the Capital Market Board (CMB).”