Türkiye has officially established a new board tasked with coordinating the liquidation of investment funds, a move aimed at protecting the rights of investors. The decision follows a high-level meeting chaired by President Recep Tayyip Erdogan, which brought together economic officials and senior representatives from relevant institutions to evaluate the current state of the nation's capital markets.
The newly formed Fund Coordination Board will be chaired by the vice president. According to an official statement from the Communications Directorate, the board is mandated to oversee the liquidation process with a focus on upholding investors' legitimate rights and serving the public interest. During the meeting, President Erdogan emphasized that the government's primary objectives are to conduct these liquidations with care, ensure compliance with capital market regulations, and facilitate fair and timely payments to investors.
As part of the broader regulatory response, President Erdogan has ordered the State Audit Board to initiate a formal examination and audit of recent investment fund transactions within the capital markets. Additionally, the Capital Markets Board has submitted a roadmap detailing the process for compensating investors whose entitlements have been verified. The timing and amount of these payments will be determined based on the liquidity and assets held by the specific funds undergoing liquidation.
During the session, officials also provided an update regarding the ongoing transfer of several savings finance companies—specifically Katilimevim and Birevim—along with Iktisat Participation Bank, to the state-owned Türkiye Emlak Participation Bank. Looking ahead, the government plans to implement further administrative and legal measures designed to reinforce the oversight and operation of capital markets, with the ultimate goal of preventing the recurrence of similar financial challenges.
