Investment Fund Liquidation Law Published: Up to 1 Million Lira Advance Payments for Investors

The law on the liquidation of certain investment funds has been published in the Official Gazette following a fund scandal. The regulation, adopted by the Grand National Assembly General Assembly on October 22, was published in Official Gazette issue 33413 dated October 27, 2026.

Investors will be able to receive advance payments of up to 1 million lira. Those with a net investment amount below 1 million lira will receive that amount, while those with 1 million lira or more will receive a maximum of 1 million lira.

The advance payments will be deducted from the final amounts investors are entitled to receive after liquidation. Payments will depend on the distributable cash available in the liquidated fund's assets, meaning immediate and unconditional payment is not guaranteed for all investors.

If available cash is insufficient to cover all investor claims, the Capital Markets Board may prioritize payments to investors with the lowest net investment amounts. The Board may also set a minimum advance payment amount applicable to all investors.

Assets will be converted into cash, and losses will be collected from those responsible. The fund's founder or the portfolio management company acting as manager will be held primarily responsible for any loss or damage suffered by the fund.

Inflation effects will be considered when calculating net investment amounts if cash obtained from asset conversion is insufficient to cover investor claims. Cash deposits and withdrawals will be updated based on the arithmetic average of changes in the consumer price index and the domestic producer price index announced by the Turkish Statistical Institute.

The Capital Markets Board will determine which funds will receive payments and the payment procedures. Government officials had previously targeted starting payments within October.