SPK’s New Fund Guide: A Groundbreaking Risk‑Based Regulatory Shift

Tera Holding Board Chairman Emre Tezmen hailed the SCB’s (Capital Markets Board) new investment fund guide as a cornerstone of risk‑based regulation.

Architectural Breakthrough in Regulation

The SCB’s overnight release is more than a rulebook; it serves as a benchmark of regulatory quality. Tezmen emphasized that “moving away from a one‑size‑fits‑all approach to an proportional, risk‑based architecture signals a regulator that truly understands market structure.”

Proportional Risk Framework and Investment Caps

■Limits on a free‑standing fund’s exposure to an issuer are set gradually based on the issuer’s actual shareholding ratio in the market.

■The number of funds a portfolio management company can issue is tied to the count of portfolio managers, linking scale to governance quality.

■This design ties growth not only to financial capacity but also to real economic management capability.

Capital Adequacy Thresholds Jump Significantly

■The capital adequacy floor for large‑scale portfolio management firms rises to 500 million TRY.

■This increase aims to bolster the sector’s financial resilience and provide a buffer against potential shock events.

Transition Timeline and Market Impact

■Existing market players are granted a transition window until 2029, ensuring the reforms do not create a sudden market shock but allow for a phased adjustment.

■Tezmen concluded, “this is not merely a tightening measure; it is a regulation that measures risk from the right spot,” praising the SCB’s technical depth and balanced approach.

Market participants can anticipate that, by embracing the SCB’s risk‑based framework, the fund industry will see scale growth accompanied by a parallel rise in governance standards. The proportional caps, heightened capital requirements, and a long‑term transition plan are set to render Turkey’s capital markets more stable and investor‑friendly. However, the practical implementation of these new limits and their effects on liquidity management will require close monitoring in the coming years.