Turkish lawmakers draft bill to protect nearly half-million fund investors

Lawmakers from Turkey's Justice and Development Party have drafted a bill aimed at protecting the rights of nearly 460,000 investors affected by the ongoing financial crisis in investment funds. The proposal would allow liquidation of assets worth up to 1 million Turkish lira for 455,578 investors, requiring precise identification of assets and owners and using CPI and D-PPI averages to adjust values. Cash proceeds would be allocated on a first-in, first-out basis, with interim payments capped at 1 million lira per investor, subject to available funds.

The Capital Markets Board would set payment priorities, starting with investors holding the smallest net amounts. Additionally, the draft creates a voluntary reimbursement mechanism for those who left funds early and earned returns above normal market levels, using benchmark indices for calculation. Liability for losses could extend to fund founders, portfolio managers, and entities responsible for shortfalls, while seized assets from criminal probes may be used for compensation. The Savings Deposit Insurance Fund would be empowered to sell or liquidate non-transferable assets and channel the proceeds to affected investors.