Turkey Launches Fund Coordination Board and DDK Probe After 131 Funds Liquidated

President Recep Tayyip Erdogan chaired a coordination meeting on September 29 with top economic officials to address the fallout from the Capital Markets Board's decision to liquidate 131 investment funds managed by seven portfolio companies. The funds hold assets for 455,758 individual investors, according to Central Registry Agency records.

The presidency announced the creation of a Fund Coordination Board led by Vice President Cevdet Yilmaz to oversee the liquidation process, protect investor rights, and ensure payments are made fairly and as quickly as possible. The board held its first meeting on September 29 and is scheduled to convene for a second session on October 2.

“Our fundamental approach is to protect the rights of the public and investors, while taking the most effective measures against manipulators and speculators who gained unfair profits through illegal transactions.”

Acting on Erdogan's directive, the State Supervisory Council (DDK) launched a comprehensive inspection of the fund transactions. DDK Chairman Salih Tanrikulu said the probe covers regulatory compliance and potential administrative or criminal liability, with findings to be referred to judicial authorities.

The Banking Regulation and Supervision Agency (BDDK) and the Capital Markets Board (SPK) have issued key decisions, while the Savings Deposit Insurance Fund (TMSF) has opened dedicated accounts for each troubled fund to recover unjust gains. Authorities have frozen suspect fund assets and imposed travel bans as part of criminal investigations into alleged market manipulation and abuse of duty.

Yilmaz stressed that systemic risk is not present and that the economy's fundamentals remain strong. He warned against disinformation, stating the process will be managed within the rule of law to protect both the public and investors.