Turkey’s Law No. 7596 on Liquidated Investment Funds: Interim Payments, Net Investment, TMSF Recovery and the Payment Ban (2026)

Law No. 7596 on Certain Investment Funds Ordered into Liquidation was published in the Official Gazette of 27 October 2026 (No. 33413) and entered into force on that day, with effect from 17 September 2026 (Art. 8). It was adopted by the Grand National Assembly on 22 October 2026. Its nine articles apply only to the investment funds that the Capital Markets Board (SPK) ordered into liquidation by its decisions of 17 September 2026 and whose liquidation was not complete on 27 October 2026. The Law confirms SPK’s control over the liquidation, allows off-exchange and other special sale methods, treats units blocked by failed redemption instructions as ordinary holdings, and bars payments to persons SPK finds to have committed market abuse with the funds. It sets an interim payment of up to TL 1,000,000 per investor in funds designated by SPK, capped by unindexed net investment, and an inflation-adjusted net-investment test where cash is short. Portfolio management companies are primarily liable for fund losses, followed by the persons SPK identifies, and TMSF collects as a public receivable. Seized and confiscated assets flow back to the funds through ring-fenced recovery accounts. It reflects the legislation in force as at 27 October 2026.

Why the Law matters

On 17 September 2026 SPK closed to trading the funds of seven portfolio management companies and ordered 131 of them into liquidation. Until now the process ran on SPK decisions, which left open three questions: on what basis money is shared out when the funds’ assets are worth less than the last published unit prices; who pays for losses caused by transactions that took value out of the funds; and what happens to assets seized from suspects in the criminal investigations.

Law No. 7596 answers those questions for this group of funds. It is a special statute. It does not amend the Capital Markets Law No. 6362, and it states expressly that it does not create a general or permanent liquidation and liability regime for other investment funds (Art. 1(2)). For foreign institutions with units in the liquidated funds, or with exposure to the managers, custodians and listed companies connected with them, it is now the main text to read alongside SPK’s decisions. Our broader guide to Turkey’s 2026 fund liquidation explains the payment tracks set by SPK before the Law; this guide explains the Law itself, article by article.

The legal framework at a glance

What changed compared with the SPK decisions

Before the Law, the liquidation ran on SPK decisions under the Capital Markets Law and the investment fund communiqués. The Law gives several of those arrangements a statutory basis and adds tools that an SPK decision could not create on its own, such as the payment ban, personal liability collected as a public receivable, and the redirection of confiscated assets away from the Treasury.

Scope and liquidation powers (Arts. 1–3)

Which funds. The Law covers each investment fund that SPK ordered into liquidation by its decisions of 17 September 2026, taken under Capital Markets Law Art. 128, and whose liquidation had not been completed on the date of publication (Arts. 1(1) and 2(1)(b)). Funds whose liquidation had already been completed by 27 October 2026 are outside the definition of “fund”, although amounts later collected for them may still reach their former holders through the recovery account (Art. 3(3)). Funds ordered into liquidation by later decisions are, on the wording of Art. 1, outside the Law; see the section on entry into force.

Who runs the liquidation. The liquidating institutions appointed by SPK carry out the liquidation under SPK’s supervision. SPK decides the stages of the process, how fund assets are identified and turned into cash, the valuation principles, how unit holding is determined, interim and final payments, the order of distribution and other procedural matters (Art. 3(1)). The liquidators must act with the care needed to obtain the highest possible economic value, taking into account investors’ interests, market conditions, the structure of each portfolio, the protection of fund assets and the common interest of unit holders (Art. 3(2)).

Special sale methods. Where SPK determines that the exchange price does not reflect an asset’s real value, or that selling on the exchange would delay the liquidation, it may decide on buy-backs, the right to sell to the controlling shareholder, wholesale transactions, special transaction notifications, a temporary different price margin and other methods available under capital markets and Borsa Istanbul rules. On a liquidator’s request SPK may also approve sales off the exchange. SPK’s restrictions on investment funds do not apply to these sales, and SPK may prohibit buyers from selling the assets on the exchange for a period, or from entering into any transaction with that effect (Art. 3(2)). Our guide to Borsa Istanbul trading rules explains the ordinary methods.

Amounts collected. Money collected during the liquidation becomes part of the liquidation estate after the necessary costs of managing and liquidating the fund are deducted. Money collected after the liquidation is complete goes to the recovery account in a way that avoids double payment (Art. 3(3)).

Information and secrecy. MKK, Takasbank, Borsa Istanbul, the Banks Association of Türkiye, liquidators, portfolio management companies, custodians, other capital markets institutions and public bodies must provide SPK, YTM and TMSF with the information and documents needed to apply the Law without delay, and may not rely on confidentiality or secrecy rules in their own legislation to refuse (Art. 3(4)).

Who counts as a unit holder. Unit holding is determined by fund and by account, by reconciling the liquidators’ records with MKK’s records (Art. 3(5)). Units that were blocked because instructions sent to TEFAS on or before 17 September 2026 could not be executed, owing to the fund’s default or the failure to announce a unit price, are treated as unit holdings and are subject to the liquidation rules of the Law. In our reading, this means such holders are paid with other unit holders rather than as creditors with a separate claim.

The payment ban. Where the acts described in Capital Markets Law Arts. 104 (market-disrupting acts), 106 (insider dealing) or 107 (market fraud) were committed by the liquidated funds, together with them or with their participation, no payment is made from the liquidation or the recovery account to the persons and institutions that SPK determines committed those acts or acted together with them (Art. 3(6)). The definition of “fund unit holder” in Art. 2(1)(c) is subject to this rule. An SPK determination of this kind is an administrative act that can be challenged in the administrative courts; see our guide to suing SPK. The underlying offences are explained in Market Manipulation under Capital Markets Law Article 107.

Net investment, interim and final payments (Art. 4)

When net investment applies. The starting point is the value of the units: the unit price valid at the end of the day before the liquidation decision multiplied by the number of units eligible for payment. Where the distributable cash obtained from the fund’s assets is not enough to cover that total, payments from the liquidation balance take into account each holder’s net investment (Art. 4(1)). Subject to the payment ban, MKK calculates net investment as follows:

1. 1. Each cash inflow the holder actually paid into the fund, and each cash outflow the fund paid to the holder, is updated to the liquidation date by the arithmetic average of the changes in the consumer price index and the domestic producer price index published by TÜİK, applied pro rata to the number of days.
2. 2. Where updated inflows exceed updated outflows, each outflow is deducted from the inflows on a first-in, first-out basis.
3. 3. The result is the holder’s net investment in that fund.

The interim payment. In funds designated by SPK, an interim payment may be made from the fund’s liquidation estate as an advance against later distributions. A holder whose net investment is below TL 1,000,000 may receive that amount; a holder whose net investment is TL 1,000,000 or more may receive up to TL 1,000,000 (Art. 4(2)). Two caps apply. First, the interim payment may not exceed the holder’s net investment calculated without the inflation update. Second, except in money-market funds, it may not exceed the total value of the units in the holder’s account at the end of the day before the date on which the interim payment is calculated. That value is calculated by Takasbank on a valuation made for that day with information obtained from the liquidator. Before the Law, SPK had placed the funds of three of the seven portfolio management companies on the interim-payment track (decision 64/1775 of 30 September 2026), as explained in our fund liquidation guide.

When cash is short. If the distributable cash is not enough to pay all net investment amounts or interim payment amounts, SPK may order payments to start from the holder with the lowest net investment, so that the largest possible number of holders are paid in full, and/or set a minimum interim payment for all holders and pay up to that amount (Art. 4(3)). In these payments no holder may receive more than its net investment, its rights calculated at the end of the day before the calculation date and/or the liquidation date, or the TL 1,000,000 ceiling. No units are redeemed against an interim payment; they are redeemed at the final liquidation payments.

Voluntary return of gains. Persons who redeemed units and received payment before the liquidation may voluntarily pay into accounts announced by SPK the part of their return that exceeds their inflows updated by the same CPI and domestic PPI average. Persons who made gains from shares held by the funds that SPK has made the subject of Capital Markets Law Arts. 104, 106 and 107 may voluntarily pay into a general share return account the part of the gain that exceeds their purchase cost updated by the same average for the holding period. SPK sets the calculation period, the method and the other details (Art. 4(4)). The text speaks of voluntary return; it does not itself impose an obligation to repay.

Final payment. In the final payment, amounts the holder has already received from the liquidation estate, from the recovery account or through other legal routes are deducted (Art. 4(5)). A recovery a unit holder obtains through its own lawsuit or settlement may therefore reduce what it later receives from the liquidation.

Unlawfully removed values and personal liability (Art. 5)

What counts as value removed from a fund. Money, capital market instruments, goods, rights and receivables taken out of a fund, or transferred, in breach of the legislation, or even in formal compliance with it but without a genuine economic purpose serving the fund’s interest, are treated as unlawfully removed, and the fund is deemed to have suffered loss. The Law lists the channels: gratuitous or sham transactions, loans, debts, advances, guarantees, transfers, assignments, purchases, sales, repos, reverse repos and similar transactions and contracts in favour of related parties, controlling shareholders, managers, persons they control directly or indirectly, or other third parties. Values substituted for those assets, or obtained by investing them, are included (Art. 5(1)).

Who is liable. The portfolio management company that founded or managed the fund is primarily liable for the loss. If the amount cannot be collected from it in whole or in part, or it is clear that it cannot be, the natural and legal persons that SPK determines to be responsible for causing the loss, and those found to have acted together with them, are personally liable. Leaving office does not end liability for transactions and decisions made while the person held office, management or control (Art. 5(2)).

How liability is determined and collected. For cases outside Art. 6, SPK determines, for each fund, the amount of the loss, the persons responsible and the amount for which each is liable, taking into account the liquidation and the results of its audits and examinations, and notifies TMSF (Art. 5(3)). TMSF then starts collection and enforcement under Law No. 6183 on the Collection of Public Receivables, and may also use the powers in Banking Law No. 5411 Arts. 132, 134, 136, 138, 140 and provisional Art. 27. The Istanbul administrative courts have jurisdiction over actions brought in connection with this collection (Art. 5(4)). Liability of board members and managers under the general law is covered in our guide to suing directors and auditors and in Claims Against Brokers, Custodians and Portfolio Managers.

Seizure, confiscation and the recovery account (Art. 6)

Seizure. In investigations into acts connected with the funds, seizure may be ordered under Criminal Procedure Code Art. 128. Money and capital market instruments among the seized assets that can lawfully be returned directly to a fund are returned to it, or to the recovery account, by the public prosecutor, the judge or the court under Criminal Procedure Code Art. 131. The reports on which SPK’s criminal complaints are based count as the report on the value obtained from the offence required by Art. 128 (Art. 6(1)).

TMSF as trustee. For seized assets that cannot be transferred to a fund, TMSF may be appointed trustee. It then uses its powers under Law No. 5411, sells or liquidates the assets immediately without waiting for the outcome of the case, and records the proceeds in a separate recovery account for each fund (Art. 6(2)).

Confiscation. Where the court orders confiscation and finds that values came out of a fund harmed by the offence, or represent compensation for the fund’s loss, it orders them transferred to the fund, or to the recovery account if the liquidation has been completed, without recording them as Treasury revenue (Art. 6(3)).

The recovery account. Amounts collected or returned under the Law, and amounts from crime-related assets ordered to be transferred to a fund or its holders, are held at TMSF in a separate sub-account for each fund and are separate from TMSF’s own assets (Art. 6(4)). They may be used only for the liquidation of the fund concerned and payments to its holders. They may not be used for any other purpose or given as security, and may not be attached, even for public receivables, or made subject to an interim injunction or a precautionary attachment (Art. 6(5)). After necessary costs, TMSF transfers the balance to the liquidator or, once the liquidation is complete, to YTM for payment to the holders notified by SPK, pro rata to their unit holdings. Except for the final distribution, an amount below a minimum set by SPK by reference to transaction and transfer costs is carried forward in the holder’s name and paid once the accumulated sum reaches that minimum (Art. 6(6)).

For a shareholder of a listed company, as opposed to a unit holder, this mechanism does not secure its own claim; its own precautionary attachment does. See Freezing Assets in Turkey for Investor Claims and Joining a Criminal Case in Turkey as a Foreign Investor.

Entry into force, implementing rules and the funds outside the Law

Entry into force. The Law entered into force on its publication on 27 October 2026, with effect from 17 September 2026 (Art. 8). It is executed by the President (Art. 9). The retroactive effect means that its rules apply to the liquidation from the date of SPK’s decisions, not only to steps taken after publication.

Implementing rules. SPK sets the procedures and principles for applying the Law and, on matters within TMSF’s remit, must first obtain TMSF’s opinion (Art. 7(2)). Many operative details, including which funds receive interim payments, the minimum payment amounts and the method for the voluntary return of gains, depend on SPK decisions. SPK and YTM may engage outside lawyers, accountants and software developers on terms set by SPK’s decision-making body (Art. 7(1)). Where the Law is silent, the Capital Markets Law, the Criminal Procedure Code, the Banking Law and other legislation apply so far as they are consistent with it (Art. 7(3)).

Funds ordered into liquidation later. In SPK Bulletin 2026/75 of 26 October 2026, SPK temporarily suspended the capital markets activities of two of the seven portfolio management companies under Capital Markets Law Art. 97(1). It also appointed a bank for each company to liquidate the investment funds, real estate investment funds and venture capital investment funds the company founded, other than those already ordered into liquidation on 17 September 2026. On the wording of Arts. 1 and 2(1)(b), the Law applies only to funds ordered into liquidation by the decisions of 17 September 2026, so these newly liquidated funds fall under the general rules of the Capital Markets Law and SPK’s fund communiqués unless SPK or the legislature provides otherwise. Real estate and venture capital funds have their own rules, explained in our guide to real estate and venture capital investment funds.

Who is affected

The Law affects four groups. Unit holders, resident or not, are paid on reconciled holdings, may receive an interim payment in designated funds and are subject to the net-investment test where cash is short (Arts. 3(5) and 4). Portfolio management companies are primarily liable for fund losses, and their managers, controlling persons and counterparties may become personally liable if SPK identifies them and may be excluded from payments under the ban (Arts. 3(6) and 5(2)). Buyers of fund assets, including investors who acquire listed shares from the liquidators, may be barred from reselling them on the exchange for a period (Art. 3(2)). The institutional actors are SPK, which supervises and decides; the liquidators, which realise assets; MKK, which calculates net investment; Takasbank, which calculates the previous-day price for the interim payment cap; TMSF, which collects and holds the recovery accounts; and YTM, which distributes recovery-account money after the liquidation ends.

Points for foreign institutional investors

Same treatment, same records. The Law draws no distinction between resident and non-resident unit holders. What decides payment is the reconciled record of units per fund and per account (Art. 3(5)). Where units are held through a global custodian, a sub-custodian or an omnibus account, ask your custodian in writing how the account is recorded at MKK, whether reconciliation is complete and how payments will be passed down the chain. Our guide to the MKK central registry explains how such accounts are kept.

Indexation is to Turkish inflation, not to currency. The Law indexes inflows and outflows to the average of Turkish CPI and domestic PPI changes. It does not provide for any adjustment for exchange-rate movements, so a foreign investor measuring its loss in another currency may find that the net-investment figure differs from its own calculation. Converting and transferring liquidation payments abroad is governed by the currency rules described in Turkish Currency Law and Repatriation of Investment Proceeds.

Coordinate individual claims with the collective regime. The Law does not state that individual claims are excluded, but amounts received through other legal routes are deducted from the final payment (Art. 4(5)). Plan any claim against a manager, custodian or distributor with this deduction in mind; see Calculating Damages in Turkish Securities Claims.

Diligence on claim transfers and counterparties. Anyone buying a liquidation claim, or lending against one, will want to know whether the seller could fall within the payment ban in Art. 3(6).

Watch the time limits. SPK decisions taken under the Law, including determinations under Arts. 3(6) and 5(3), are administrative acts. The general time limit for an action in the administrative courts is sixty days from written notification (Administrative Procedure Law No. 2577 Art. 7), and disputes over TMSF collection under Art. 5(4) go to the Istanbul administrative courts.

Frequently asked questions

When did Law No. 7596 enter into force?

On 27 October 2026, when it was published in the Official Gazette No. 33413, with effect from 17 September 2026 (Art. 8). It was adopted by the Grand National Assembly on 22 October 2026.

Which funds does the Law cover?

Only the investment funds SPK ordered into liquidation by its decisions of 17 September 2026 whose liquidation was not complete on publication. The Law expressly does not create a general regime for other funds (Art. 1).

Are foreign unit holders treated differently?

No. The Law makes no distinction between resident and non-resident holders. Payment depends on units reconciled between the liquidator’s and MKK’s records for each fund and account (Art. 3(5)).

How much is the interim payment?

In funds designated by SPK, up to TL 1,000,000 per holder per fund. It cannot exceed the holder’s net investment without the inflation update and, except in money-market funds, the value of its units at the end of the day before the payment is calculated (Art. 4(2)).

What if the fund does not have enough cash?

SPK may order payment starting from the smallest net investments, or set a minimum amount for all holders. No holder may receive more than its net investment, its rights at the relevant date or TL 1,000,000 in these payments (Art. 4(3)).

Who is excluded from payments?

Persons and institutions that SPK determines to have committed market-disrupting acts, insider dealing or market fraud with the funds, or to have acted together with them (Art. 3(6)). The determination can be challenged in the administrative courts.

Can I still sue the manager or custodian myself?

The Law does not exclude individual claims, but amounts received through other legal routes are deducted from the final liquidation payment (Art. 4(5)).

Does the Law apply to the funds placed into liquidation on 26 October 2026?

On its wording, no. It covers funds ordered into liquidation by the decisions of 17 September 2026. The funds of the two companies whose activities SPK suspended in Bulletin 2026/75 are liquidated under the general capital markets rules unless provided otherwise.

Related guides

• Turkey’s 2026 Fund and Market Manipulation Crisis: Legal Guide for Foreign Institutional Investors — the entry point to this series
• Turkey’s 2026 Fund Liquidation: Legal Guide for Foreign Investors and Companies
• Turkish Investment Fund Rules
• Claims Against Brokers, Custodians and Portfolio Managers
• Freezing Assets in Turkey for Investor Claims
• Suing Turkey’s Capital Markets Board (SPK)
• Joining a Criminal Case in Turkey as a Foreign Investor
• Market Manipulation under Capital Markets Law Article 107
• Real Estate and Venture Capital Investment Funds in Turkey