Recent developments

To increase market visibility at home and abroad, Turkey's Capital Markets Board (the "CMB") has injected new life into its Association of Capital Markets Intermediary Institutions, with new bylaws and a new name: the Turkish Capital Markets Association (the ‘’Association’’). Previously regulated under the Capital Markets Law (No. 2499), the Association has been reborn under the new Capital Markets Law (No. 6362) (the ‘’Law’’), with new members, a new membership structure, and more. The name change, approved by the Council of Ministers on February 5, 2014, became official following the entry into force of the Association's new bylaws on April 2, 2014, published in Official Gazette No. 28960.

Under the new bylaws

  • More capital market institutions represented

The Association represents a wider range of capital market institutions. In addition to banks and intermediary institutions, portfolio management companies and investment companies whose shares are traded on Borsa Istanbul will also become members. 

  •  Application for membership

Institutions must apply to the Association for membership by May 2, 2014. Within the following two months, the Association must convene its general assembly to select its organs in line with the bylaws.

Institutions applying for membership for the first time must pay an entrance fee of TRY 5,000 for 2014. Existing members are exempt from this fee.

  • New board structure

As a reflection of the new membership structure provided under the Law, portfolio management companies and investment companies will also be represented in the Association's Board of Directors. One board member will be a representative of the Independent Appraisers Association of Turkey. To comply with the CMB's corporate governance principles, at least two board members will be independent.

  • Foreign branches

The Association's headquarters are located in Istanbul, while the bylaws allow the Association to establish both local and foreign branches with prior CMB approval. This is the first time the CMB has provided the Association the opportunity to establish a presence abroad.

Conclusion

By updating the Association and its bylaws, the CMB aims to increase the Capital Markets Association's market visibility and activity. Indeed, the opportunity to open branches abroad demonstrates the CMB's intent to increase the Association's visibility beyond Turkey's borders. We believe an active Association both inside and outside of Turkey will have a positive impact on the CMB's goal of ensuring transparent, efficient and well-functioning capital markets.