An AK Party proposal filed Friday aims to clean up the mess after last month's fund blowups. It would hold managers at portfolio firms to account for recovering losses and repaying investors whose money is stuck in funds that are being wound down. The measure marks one of Ankara's earliest concrete steps after two major funds managed by Tera Portfoy Yonetimi AS and Pusula Portfoy Yonetimi AS missed redemptions in mid September, an event the justice minister said exposed a broader "Ponzi-like scheme" spanning many funds. The draft can still change.
A version reviewed by Bloomberg outlines temporary payments reaching as high as 1 million liras per investor. Anyone whose net contribution sits under that cap would receive their entire amount back. The Central Securities Depository would be tasked with tallying each person's net investment and adjusting it for inflation.
Fund rules decide whether savers can actually access their money. Market Briefs covers that risk free every weekday.
If a portfolio management company cannot meet what it owes, the burden would shift to individuals linked to the firm, including former managers. Separately, the draft would appoint the state-run Savings Deposit Insurance Fund to take charge of assets that authorities seize in criminal investigations and cannot return to a fund, and it would allow the fund to sell those assets without waiting for a court verdict. Authorities have detained dozens of executives so far, and officials say probes into the funds are still underway.
There are still 131 funds across seven firms with unresolved liquidation paths, and this blueprint is not final yet. But the combination of capped interim payments, inflation-aware calculations, and clear liability for managers signals a push to get trapped cash moving. If you have exposure to Turkish funds, watch how the interim payment process and asset sales unfold, because speed and recoveries will hinge on these mechanics rather than market mood.
Liquidity crises usually start as management problems. Join Market Briefs free and follow the legislation.
