SPK’s New Free‑Fund Fren: How Tight Limits Will Reshape Turkish Asset Management

SPK’s 28 August 2026 decision implements a suite of restrictions on free funds aimed at tightening market control. The new guide redefines concentration limits for individual stocks, funds managed by the same manager, and portfolio management firms (PYŞ), seeking to enhance market transparency.

Share Concentration: New Thresholds

■For companies with <25% free float, funds can own up to 8%.

■Between 25‑50% free float, the limit is 6%.

■Between 50‑75%, the cap is 4%.

■Above 75%, only 2% is allowed.

■If a company is under managerial control, a single fund may hold >1% and all funds combined cannot exceed 2%.

Multi‑Fund Controls: Managerial Limits

■A manager may oversee up to 7 funds in a single portfolio; this expands to 10 on 1 Jan 2029 and reverts to 7 on 1 Jan 2031.

■Each fund must appoint at least two responsible portfolio managers.

■All securities‑investment funds under the same founder cannot collectively own more than 12‑16% of a company’s free float.

Money‑Market Funds: State‑Bond Exposure

■At least 10% of assets must be allocated to domestic debt securities or Hazine Varlık Kiralama Şirketi lease certificates.

■Reverse repo transactions are capped at 25% of total fund value.

Capital‑Increase Obligation

■PYŞ initial capital is set between TL 250 million and TL 500 million.

■PYŞ with over 50% free‑fund exposure must raise an additional 10% of paid‑up capital.

Implementation Timeline

■New rules take effect on 29 August 2026, with the first audit at the end of the 2026 fiscal period.

■Existing PYŞ must comply by 30 June 2029.

Zeynep Turan: SPK’s comprehensive “concentration” strategy erects a protective shield against market manipulation by free funds, while simultaneously bolstering PYŞ’s financial resilience through capital and manager limits. Yet, these restrictions could curtail liquidity for investors and impose rigidity on fund management. Market participants will need to recalibrate risk‑management frameworks to align with the new constraints.