Recent Development

The Capital Markets Board published a communiqué amending the Communiqué No. II-13.1 on the Registration Procedures and Principles of Registered Capital Market Instruments (the "Communiqué") in the Official Gazette dated November 29, 2017 with No. 30255. The amendments entered into force on the same day.

What's new? 

The amendment allows the Turkish Central Registration Agency (the "CRA") to provide a non-resident right holder's records to a non-resident depository institution (the "Foreign Depository Institution") under certain conditions:

  • The CRA can provide the customer's records to the Foreign Depository Institutions that provide the customer with depository services abroad.
  • In order for the CRA to provide the relevant records, two conditions must be satisfied: (i) there must have been an agreement between the right holder and the Foreign Depository Institution containing a clause allowing the institution to access the customer's records; and (ii) a contract for information access between the Foreign Depository Institution and the investment institution authorized to conduct depository services in Turkey (the "Local Depository Institution") must have been signed.
  • In order for the CRA to provide the records to the Foreign Depository Institution, the Local Depository Institution must inform the CRA of the Foreign Depository Institution's commercial title and the relevant customer, together with a declaration stating the two aforementioned conditions are satisfied.
  • The Foreign Depository Institution will be obliged to protect the confidentiality of records.

Conclusion

The Communiqué's amendments make information provision possible to Foreign Depository Institutions.