Turkish Minister of Treasury and Finance Mehmet Şimşek has said legal regulations strengthening the fight against capital market crimes, including coordinated fund transactions, are planned to be completed by the beginning of 2027.
New fund Guide rules
Şimşek said Capital Markets Board regulations have increased information flow and made ultimate beneficial ownership more transparent, taking into account assessments by international index providers. A Fund Guide announced at the end of August requires free funds to disclose portfolios weekly and to announce when ownership crosses certain thresholds for funds traded on TEFAS.
Funds now face concentration limits. Borrowing transactions must be conducted on organized markets and be collateralized. Şimşek said further necessary steps will be taken without delay in consultation with all stakeholders, and that the priority is completing the liquidation of problematic funds and protecting investors’ rights. He said sanctions will be applied resolutely against those who disrupt fair and competitive market functioning.
MSCI monitoring continues
MSCI said in a press release on Turkey that some index changes in the equity market have been frozen until a second announcement. The index provider said it needed more time to assess whether the measures produce the expected structural improvements, and that it would keep collecting feedback from market participants while monitoring developments through June 2027.
Şimşek’s planned 2027 target for the legal regulations falls within that same monitoring window, which MSCI said runs to June of that year.
