|DEFINITION||Foregin investment funds (FIFs) are the investment funds established abroad. Sale of FIFs in Turkey is subject to Capital Market Regulations.|
|PRECONDITIONS FOR SALE||FIFs whose units will be sold in Turkey should comply with the following conditions: |
b) to make sure that all information required to be disclosed to public are disclosed in a timely manner, and all notices and reports required to be submitted to the Board are delivered on time, and all documents, prospectuses and investor information notes to be attached to applications and all other information disclosed to public are true and accurate; and
c) for trading of foreign investment fund units in compliance with principles determined by the fund; and
ç) if and to the extent the fund fails to make payment for any reason whatsoever upon return of fund units to the foreign investment fund, to ensure that the price of fund units is paid fully in cash and the relevant fund units are repurchased from investors within 17 maximum two business days following the end of the period of time granted for repurchase of fund units; and
d) to procure that records relating to fund units sold in Turkey, and identity of buyers thereof, and number of fund units traded as above, and dates of trading, are kept accurately, and records and information to be transmitted to the issuer are transferred accurately, and records kept in Turkey and records kept abroad are consistent with each other.
|CUSTODY||Fund assets are required to be kept in custody in at least one fund custodian as defined in Communiqué.|
|DISCLOSURE||It is obligatory for FIFs to prepare the fund prospectus and an investor information form. |
Information contained in the prospectus must be consistent, understandable and complete according to the prospectus standards determined by the Board. The fund prospectus must be prepared in Turkish and in sufficient details for clear reflection of all information relating to the fund and the sales of foreign investment fund units as specified in the related laws or other information relating thereto as requested by the Board, and must be signed by representative and officials of the fund, and the information and statements must, if needed, be relied upon documentary evidences.
Investor information form is prepared and published in accordance with the principles set forth in regulations of the Board pertaining to investment funds. The fund representative is responsible for accuracy and currency of contents of this form.
In addition of the prospectus and investor information form originals and Turkish summaries of financial reports, independent audit report and other periodical reports issued and prepared in accordance with national laws and international accounting standards applicable on funds are required to be published in PDP for FIFs. The fund representative is responsible for such reporting.
|PRIVATE PLACEMENT||Foreign investment fund units may be sold through private placement only to qualified investors. In applications to be filed to the Board for sales of these fund units, an issue certificate is prepared and issued instead of prospectus.|