When a foreign pension fund, sovereign fund or asset manager has to protect its position in a Turkish capital markets dispute, three questions come before any strategy: who may act for it before Turkish courts and prosecutors, what its power of attorney must say, and how fees, confidentiality and deadlines are governed. Turkish law answers each of them precisely. Under Article 35 of Attorneyship Law No. 1136, representing others before Turkish courts and giving opinions on Turkish legal matters is reserved to lawyers registered with a Turkish bar; foreign law firms established in Turkey may advise only on foreign and international law (Art. 44). A power of attorney must be notarised (Code of Civil Procedure Art. 76) and must expressly grant the authorities listed in Article 74, including settlement and recourse to alternative dispute resolution such as the mediation that is a precondition for many commercial claims. Fees are agreed freely in writing but cannot fall below the official minimum tariff or, where set as a share of the claim, exceed 25% of it (Art. 164). This page explains these rules as they apply to institutional investors affected by the 2026 market-manipulation and fund cases, as at 25 October 2026.
- Who may act for a foreign investor in Turkey
- Working alongside international counsel
- The power of attorney: form and special authorities
- Conflict checks and the duty to decline
- Confidentiality and professional secrecy
- Fees, court costs and security for costs
- Deadlines that shape the first weeks of a 2026 matter
- How the first weeks of a mandate usually run
- Documents for a first assessment
- Areas in which our office works
- Frequently asked questions
Who may act for a foreign investor in Turkey
Turkish law draws a clear line between those who may advise on and litigate Turkish-law matters and those who may not. Article 35(1) of the Attorneyship Law reserves to lawyers registered with a Turkish bar the giving of opinions on legal matters, the bringing and defending of claims of natural and legal persons before courts, arbitral tribunals and other bodies with judicial authority, the conduct of judicial proceedings and the drafting of all documents relating to these activities. Admission to the profession requires, among other things, Turkish citizenship and a Turkish law degree or a foreign degree completed by examinations in the Turkish curriculum (Art. 3).
Foreign law firms are not excluded from Turkey, but their scope is limited. Under Article 44, foreign law partnerships that wish to operate in Turkey under the foreign investment rules may do so only if they are set up in accordance with the Attorneyship Law, and they may then provide advice only on foreign law and international law. The limitation also covers the Turkish and foreign lawyers working in such partnerships, and the rule is subject to reciprocity.
For an institutional investor this has a practical consequence: a global litigation firm can coordinate the overall strategy and advise on its home law, but filing a claim in Istanbul or Ankara, applying to join a criminal case, examining the court file through the national judicial network and appearing at hearings must be done by Turkish-registered counsel.
Who may do what in a Turkish dispute
| Actor | What it may do | Legal basis |
|---|---|---|
| Lawyer registered with a Turkish bar | Give opinions on Turkish law; bring and defend claims; join criminal cases; draft pleadings and petitions; appear before courts, arbitral tribunals and prosecutors | Attorneyship Law Art. 35(1) |
| Foreign law partnership established in Turkey | Advise on foreign law and international law only, subject to reciprocity | Attorneyship Law Art. 44 |
| International counsel abroad | Advise the client on its home law, coordinate multi-jurisdictional strategy, work with Turkish counsel | Outside the Turkish reserved activities, as long as it does not act before Turkish courts |
| The investor itself | Any person with capacity to sue may conduct its own case, but a legal entity acts through its organs and in practice instructs counsel | Attorneyship Law Art. 35(3); Code of Civil Procedure |
Working alongside international counsel
Large institutions rarely instruct Turkish counsel directly at the outset. More often their in-house legal team or their international litigation firm identifies the issue, and Turkish counsel is brought in for the Turkish-law analysis and the Turkish proceedings. That division of labour works well when the roles are clear from the start:
- International counsel holds the overall client relationship, coordinates claims in several countries, handles the investor’s home-law questions (for example, its governance approvals and its contracts with external managers) and manages reporting to the client’s board.
- Turkish counsel gives the Turkish-law opinion, maps limitation periods, prepares the power of attorney, files the mediation application and the statement of claim, applies to join any criminal case, follows the court file and attends hearings.
- Experts appointed by the parties or the court quantify loss and price impact; in Turkish procedure the court appoints its own expert, and party experts provide opinions.
A clear written allocation of work, fees and communication lines avoids two common problems: duplicated work on Turkish-law questions, and delays caused by documents passing through several hands before reaching the Turkish court.
The power of attorney: form and special authorities
A lawyer acting in Turkish proceedings must file with the court the original of a power of attorney certified or drawn up by a notary, or a copy certified by the lawyer as true to the original (Code of Civil Procedure Art. 76(1)). A power of attorney for litigation covers, by law, all steps needed to conduct the case until the judgment becomes final, enforcement of the judgment and collection of costs (Art. 73(1)). Some acts, however, require an express grant of authority. Under Article 74, unless expressly authorised the lawyer may not, among other things, settle, challenge the judge, amend the whole claim, offer or accept an oath, delegate to another lawyer, lift an attachment, request the client’s bankruptcy, enter into an arbitration agreement, apply to alternative dispute resolution, waive the claim or a right of appeal, release or accept the other side’s claim, or seek a retrial.
The authority to apply to alternative dispute resolution deserves attention. Where a claim is a commercial case for a sum of money, applying to a mediator before filing is a condition of the action (Turkish Commercial Code Art. 5/A). A power of attorney that omits express authority for alternative dispute resolution therefore cannot be used for the first, mandatory step of many investor claims.
Express authorities an institutional investor’s power of attorney should contain
| Authority | Why it matters in an investor claim | Legal basis |
|---|---|---|
| Apply to alternative dispute resolution, including mediation | Mandatory pre-action mediation for commercial money claims | Code of Civil Procedure Art. 74; Turkish Commercial Code Art. 5/A |
| Settle | Settlement in mediation or during proceedings with issuers, intermediaries or other defendants | Code of Civil Procedure Art. 74 |
| Delegate to another lawyer | Hearings in several cities, or a team of lawyers on the same file | Code of Civil Procedure Art. 74 |
| Amend the whole claim; waive or accept | Changes in strategy as the criminal file develops | Code of Civil Procedure Art. 74 |
| Lift attachments; request bankruptcy | Enforcement against defendants after judgment | Code of Civil Procedure Art. 74 |
| Act in criminal proceedings as complainant and participating party | Joining market-manipulation prosecutions and appealing as a party | Criminal Procedure Code Arts. 234 and 237 |
A power of attorney signed abroad is executed before a notary in the investor’s country and, where that country is a party to the 1961 Hague Apostille Convention, bears an apostille instead of consular legalisation. It is then filed in Turkey together with a sworn Turkish translation. For a legal entity, evidence that the signatories are authorised to bind it should be prepared at the same time, since a Turkish court will check it.
Contact Hukukçular Evi Ankara
For questions about representation in Turkish capital markets disputes, including the wording of a power of attorney for use in Turkey, you can reach our office by phone or WhatsApp. We correspond in English. Hukukçular Evi Ankara: +90 554 648 37 15
Conflict checks and the duty to decline
Market-manipulation cases have many parties: issuers, board members, intermediaries, portfolio management companies, auditors and dozens of individual suspects, as well as large numbers of investors on the claimant side. A Turkish lawyer must refuse an instruction if he or she has acted or given an opinion for a party with conflicting interests in the same matter, among other grounds, and the duty extends to the lawyer’s partners and the lawyers working with them (Attorneyship Law Art. 38). A conflict check against the full list of potential defendants is therefore the first step of any engagement, before documents are exchanged in substance.
Confidentiality and professional secrecy
Lawyers may not disclose matters entrusted to them or learned through their professional activity, and they may testify about such matters only with the client’s consent; even then they may decline, and declining carries no civil or criminal liability (Attorneyship Law Art. 36). Searches of law offices are possible only by court order, for the event stated in the order, under a prosecutor’s supervision and in the presence of the bar president or a lawyer representing him or her (Criminal Procedure Code Art. 130(1)).
For an institutional investor, this means that position data, trading records, internal analyses and correspondence with Turkish counsel are protected by professional secrecy. Internal reviews of external managers are better structured with counsel involved from the start, so that the analyses prepared for the purpose of legal advice enjoy that protection.
Fees, court costs and security for costs
The lawyer’s fee is agreed freely. A fee agreement must cover a specific legal service and a specific amount or value; agreements not made in writing are proved under the general rules, and conditional agreements that do not breach the law are valid (Attorneyship Law Art. 163). A percentage of the value of the claim or of the amount awarded may be agreed as the fee, but not more than 25%; such an agreement cannot provide that part of non-monetary assets in dispute will belong to the lawyer in kind (Art. 164). A fee below the official minimum fee tariff may not be agreed. Costs awarded against the losing side on the basis of the tariff belong to the lawyer and cannot be set off against the client’s debts (Art. 164).
Costs in a Turkish investor claim
| Item | Rule | Legal basis |
|---|---|---|
| Lawyer’s fee | Agreed freely in writing; not below the minimum tariff; a percentage fee capped at 25% of the claim or award | Attorneyship Law Arts. 163 and 164 |
| Judgment fee (court fee) | 68.31 per thousand of the amount awarded; one quarter paid in advance on filing, the balance within one month of service of the judgment | Fees Law No. 492, Art. 28(a) and Tariff 1 |
| Partial claim | A claim may be filed for part of the loss and increased once until the end of the evidence stage, with limitation interrupted from the filing date | Code of Civil Procedure Art. 109(1) and (4) |
| Security for costs | Required from foreign claimants unless exempted on reciprocity; the 1954 Hague Convention on civil procedure restricts security imposed solely on grounds of foreign nationality between contracting states | Law No. 5718 Art. 48; 1954 Convention Art. 17 |
| Translations and apostilles | Sworn Turkish translations of foreign documents; apostille for documents from Apostille Convention states | 1961 Hague Apostille Convention |
| Experts | Court-appointed expert fees are advanced by the parties as ordered; party expert opinions are paid by the party | Code of Civil Procedure |
Legal services are a commitment to careful and loyal representation, not to a particular outcome. No lawyer can guarantee that a claim will succeed or that a particular amount will be recovered; the result depends on the facts, the evidence and the assessment of the courts.
Deadlines that shape the first weeks of a 2026 matter
In the matters arising from Turkey’s 2026 fund and market-manipulation cases, the most time-critical rules are these. They are explained in detail in our analysis Norway’s Wealth Fund and Turkey’s Market Manipulation Crisis: What Turkish Law Offers Foreign Institutional Investors. The disclosure-liability rules and their six-month period are covered in Prospectus and Disclosure Liability in Turkey: Capital Markets Law Articles 10 and 32.
Time limits to diarise at the start of a mandate
| Step | Time limit | Legal basis |
|---|---|---|
| Damages for false, misleading or incomplete prospectuses and public disclosure documents | Six months from the loss described in Art. 32(4) | Capital Markets Law Art. 32(6) |
| Tort claims against those who manipulated prices | Two years from knowledge of the loss and the liable person, ten years from the act, or the longer criminal limitation period (eight years for offences punishable by up to five years) | Turkish Code of Obligations Art. 72; Turkish Criminal Code Art. 66(1)(e) |
| Joining a criminal prosecution as a participating party | Until judgment at first instance | Criminal Procedure Code Art. 237 |
| Action against an administrative decision, for example of the SPK | Sixty days from written notification, unless a special law provides otherwise | Administrative Procedure Law No. 2577, Art. 7 |
| Mandatory mediation before a commercial money claim | Limitation suspended from the application until the final report; the mediator concludes within six weeks, extendable by two | Turkish Commercial Code Art. 5/A; Law No. 6325 Art. 18/A(15) |
How the first weeks of a mandate usually run
Every matter is different, but institutional mandates in Turkish capital markets disputes tend to follow the same sequence. The order matters, because the six-month limitation period for disclosure claims leaves little room for steps taken one after another rather than in parallel.
A typical sequence for an institutional investor
| Stage | What happens | Who provides what |
|---|---|---|
| 1. Conflict check and engagement | Names of potential defendants checked against the office’s files; written fee agreement covering scope, stages and costs | Investor or its counsel: list of issuers and counterparties |
| 2. Power of attorney | Draft with the Article 74 express authorities; notarised and apostilled abroad; sworn translation | Investor: authorised signatories and corporate authority evidence |
| 3. Exposure and evidence mapping | Positions matched issuer by issuer against SPK bulletins, prospectuses, KAP disclosures and the public record of the investigation | Investor or its managers: trading and custody records |
| 4. Limitation and defendant memo | Earliest limitation date per issuer; potential defendants and their solvency; recommended routes | Turkish counsel |
| 5. Interrupting limitation | Mediation application and, if no settlement, a partial claim that can later be increased | Turkish counsel, on the investor’s instructions |
| 6. Criminal file | Requests for evidence and copies during the investigation; application to join the prosecution once an indictment is accepted | Turkish counsel |
Documents for a first assessment
- A list of Turkish equity positions held since January 2025, by issuer, with acquisition dates, quantities and prices.
- Custody statements and trade confirmations for the same period.
- Any IPO applications and allocation notices.
- The investment management agreements with any external manager that traded Turkish equities, and the relevant reports received from them.
- The dates on which positions were reduced or sold after September 2026.
- Corporate documents identifying the persons authorised to sign a power of attorney.
- Contact details of any international counsel already instructed, so that work can be coordinated.
Areas in which our office works
Hukukçular Evi Ankara is a law office based in Ankara, led by Av. Fatma Öztürk. The office works in criminal law, company and commercial law, capital markets law and administrative law. Matters arising from Turkey’s 2026 fund and market-manipulation cases sit where these areas meet: a claim for disclosure liability is a capital markets and commercial matter, participation in a manipulation prosecution is a criminal-procedure matter, a challenge to an SPK decision is an administrative-law matter, and a blocked transfer can raise anti-money-laundering rules. Through the national judicial network (UYAP), court files can be examined and pleadings filed regardless of the city in which a case is pending; hearings and in-person steps are attended where they take place.
The guides published on this site aim to explain the applicable legislation on the basis of primary sources and with its latest amendments. They are general information and are not a legal opinion on any particular matter.
Hukukçular Evi Ankara
Ankara-based law office, Av. Fatma Öztürk. Telephone and WhatsApp: +90 554 648 37 15. We correspond in English.
Frequently asked questions
Can our international law firm represent us before a Turkish court?
No. Bringing and defending claims before Turkish courts, conducting judicial proceedings and drafting the related documents are reserved to lawyers registered with a Turkish bar (Attorneyship Law Art. 35). Foreign law partnerships established in Turkey may advise only on foreign and international law (Art. 44). International counsel can coordinate the strategy and work with Turkish counsel.
Does the power of attorney have to be signed in Turkey?
No. It can be executed before a notary abroad. Where the country of signature is a party to the 1961 Hague Apostille Convention, an apostille replaces consular legalisation. The original or a lawyer-certified copy of a notarised power of attorney is filed with the court (Code of Civil Procedure Art. 76), together with a sworn Turkish translation.
What must the power of attorney expressly authorise?
Among other acts, settlement, recourse to alternative dispute resolution including mediation, delegation to another lawyer, amendment of the whole claim, waiver, acceptance, release, lifting of attachments and requests for bankruptcy require express authority (Code of Civil Procedure Art. 74). Without the authority to apply to alternative dispute resolution, the mandatory mediation step for commercial money claims cannot be taken.
Can fees be agreed as a percentage of the recovery?
Yes, within limits. A percentage of the value of the claim or of the amount awarded may be agreed, but not more than 25%, and no fee may be agreed below the official minimum tariff (Attorneyship Law Art. 164). Conditional fee agreements that do not breach the law are valid (Art. 163).
Who receives the costs awarded against the losing party?
Costs awarded on the basis of the tariff belong to the lawyer and cannot be set off against the client’s debts or attached (Attorneyship Law Art. 164). The fee agreement normally explains how they are treated in the overall fee.
Are our trading records and internal analyses protected?
Matters entrusted to a lawyer are covered by professional secrecy (Attorneyship Law Art. 36), and law offices may be searched only by court order, under a prosecutor’s supervision and in the presence of a bar representative (Criminal Procedure Code Art. 130). Analyses prepared with counsel for the purpose of legal advice are better protected than internal reports prepared without counsel.
Can a law office guarantee a result?
No. Legal services are a commitment to careful and loyal representation, not to a particular outcome. The result depends on the facts, the evidence and the assessment of the courts.
Related guides
- Turkey’s 2026 Fund and Market Manipulation Crisis: Legal Guide for Foreign Institutional Investors — the entry point to this series: which route fits which exposure, liable parties and deadlines
- Turkish Bond Defaults: Bondholders’ Boards and Enforcement
- Continuous Disclosure in Turkey: Inside Information and Delayed Disclosure
- How a Securities Lawsuit Proceeds in Turkey
- Limitation Periods for Investor Claims in Turkey
- Concealed Profit Transfers and Controlling Shareholder Liability
- Claims Against Brokers, Custodians and Portfolio Managers in Turkey
- When a Turkish Issuer or Broker Becomes Insolvent
- Obtaining and Preserving Evidence in Turkey for Securities Claims — preservation, document production and the criminal file
- Shareholder Rights in Turkish Listed Companies after the 2026 Crisis — general meetings, release, annulment and exit rights
- Insider Dealing in Turkey: Capital Markets Law Article 106 — trading on non-public information
- Calculating Damages in Turkish Securities Claims — loss, interest and currency
- Suing in Turkey or Abroad: Jurisdiction and Enforcement — forum choice and enforcement of foreign judgments and awards
- Suing Turkey’s Capital Markets Board (SPK) — challenging SPK decisions and supervisory failure claims
- Suing Directors and Auditors of Turkish Listed Companies — board members, managers and audit firms
- Can Foreign Investors Bring a Class Action in Turkey? — joint claims, consolidation, association actions and assignment
- Freezing Assets in Turkey for Investor Claims — precautionary attachment, interim injunctions and criminal seizure
- Norway’s Wealth Fund and Turkey’s Market Manipulation Crisis — remedies for institutional shareholders, including the six-month limitation period
- Joining a Criminal Case in Turkey as a Foreign Investor — how investors take part in criminal proceedings
- Market Manipulation under Turkish Law: Capital Markets Law Article 107 and SPK Enforcement — the offence and SPK enforcement measures
- Prospectus and Disclosure Liability in Turkey: Capital Markets Law Articles 10 and 32 — liability for misleading prospectuses and KAP disclosures
- Legal Guide for Foreign Investors in Turkey (Türkiye) 2026 — the full English-language guide
- Turkey’s 2026 Fund Liquidation: Legal Guide for Foreign Investors and Companies — for holders of units in the 131 liquidated funds
- Can Foreign Investors Buy Shares on Borsa Istanbul? — accounts, custody and disclosure
- Company Formation in Turkey for Foreigners — apostille and powers of attorney in practice
- Investment Arbitration and ICSID — treaty remedies against measures of the State
- MASAK Avukatı — corporate matters involving suspended or blocked transfers (in Turkish)
- Sermaye Piyasası Suçlarında Katılan ve Mağdur Hakları — victims and participating parties in capital markets cases (in Turkish)
- Fon Tasfiyesi Hukuk Rehberi — the fund liquidation hub (in Turkish)
About this page: This page has been prepared within the framework of Attorneyship Law Art. 55 and the Union of Turkish Bar Associations’ Regulation on the Advertising Ban to give information on the rules governing representation in Turkish capital markets disputes and on the areas in which our office works. It does not imply specialisation, contains no promise of results and does not refer to any client.
Important note: This page is for general information only and does not constitute legal advice on any matter. It reflects the legislation in force on 25 October 2026. Legislation relied on: Attorneyship Law No. 1136, Arts. 3, 35, 36, 38, 44, 55, 163 and 164; Code of Civil Procedure No. 6100, Arts. 73, 74, 76 and 109; Criminal Procedure Code No. 5271, Arts. 130, 234 and 237; Capital Markets Law No. 6362, Art. 32; Turkish Code of Obligations No. 6098, Art. 72; Turkish Criminal Code No. 5237, Art. 66; Turkish Commercial Code No. 6102, Art. 5/A; Law No. 6325 on Mediation in Civil Disputes, Art. 18/A; Administrative Procedure Law No. 2577, Art. 7; Law No. 5718 on Private International and Procedural Law, Art. 48; Fees Law No. 492, Art. 28 and Tariff 1; Hague Convention of 1 March 1954 on civil procedure; Hague Convention of 5 October 1961 abolishing the requirement of legalisation for foreign public documents.