Brief Guide 

DEFINITION:

Portfolio management companies are professional institutions that manage portfolios of institutional and individual investors.

LEGAL STRUCTURE:

With the permission of the board, they are established in the form of joint stock corporations. They also need to get a portfolio management license from the board.

REQUIREMENTS:

A portfolio management company must meet the following requirements;

  1. Foundation in the form of incorporation.
  2. Shares shall be issued in terms of cash.
  3. Shares shall be nominative.
  4. Founders shall provide the financial power, credit and sufficient experience required to be the founder of portfolio manager and associate.
  5. Paid-in capital shall not be less than 250.000 YTL.
  6. Founders and real persons or legal entities who hold more than 10% of the capital, shall not have due tax and social security premium debt.
  7. Founders who commit %10 and more of the capital shall provide the necessary resource from their commercial, industrial and other legal activities free of falsity.
  8. Bankruptcy verdict about real persons and the enterprises in which they are unlimited responsible associates shall not be ruled and composition of debts shall not be announced.
  9. Real person associates shall possess the provisions stated in the Communiqué Serial:V, No:46, Article 9 (d).
  10. Articles of association shall comply with the Law and regulations of the Board.

In addition to above:

  1. If the associates are foreigners, Board asks for positive opinion about them from the related authority.
  2. Amount of paid-in capital can be redesigned every year by the Board taking the revaluation ratio issued by the Ministry of Finance into account.
  3. Portfolio management company is obligated to verify necessary information and documents that the custodian qualifies the provisions stated in Communiqué Serial:V, No:59, Article 19.
  4. According to Board's resolution published in the weekly bulletin No:2005/23, banks providing the conditions stated in the Communiqué will be given permission to carry out custody activities. Until the banks apply for custody services and Board gives permission to their custody activities portfolio management companies will keep on preserving the assets subject to individual portfolio management by the Central Securities Depository Bank of Turkey/Central Registry Agency Inc.