CMB: Completed clearing transactions will not be affected by the 'Fund Law'

The Capital Markets Board (CMB) provided comprehensive information on the public's hesitations regarding "settlement certainty" and "share blockage" (PBLK) within the scope of the Bill, which continues to be discussed in the Turkish Grand National Assembly and includes the liquidation of investment funds.

In the statement made by the Board, it was reminded that the purpose of the provision in Article 79 of the Capital Markets Law that "clearing instructions cannot be canceled even if the activity is stopped" is to maintain confidence in the markets. However, it was stated that this rule does not mean that every sales order given through TEFAS will be directly considered as a "finalized transaction" regardless of its stage.

In the statement, it was noted that TEFAS has a different operation than classical organized markets, and it was stated that the platform is based on the principle of receiving fund participation shares from the fund founder and returning them to the founder.

The following statements were included in the statement, which touched upon the situation of investors with share blockage sub-account (PBLK) status during the liquidation process:

The fact that sales instructions have been given or the presence of a certain record in the system does not alone mean that the exchange has started. Clearing process; It is completed by transferring the cash to the investor's account after the instruction received and removing the record of fund participation share ownership.

In the statement, "fair distribution of fund assets among investors" was cited as the main reason for including instructions whose clearing has not yet been actually completed within the scope of liquidation. It was reminded that people with share blockage records do not constitute a privileged or additional group, but are among the total of 455 thousand 758 fund shareholders.

Emphasizing that the regulation in the bill is not retroactive and will not affect completed transactions, CMB stated that only processes that have not yet been finalized will be included in the liquidation pool. It was stated that these instructions will be evaluated on completely equal terms with other unit holders based on the amounts obtained as a result of the liquidation.

In the CMB statement, it was noted that the legal regulation in the Parliament was a "necessary and measured step" in order to clarify the legal status of fund shareholders and clarify their rights.

Source: TRT Haber Açık RSS (Gündem) (Open Press / Translated Full Text)