CMB Proposes New Investment Fund Regulations: Additional Capital and Takasbank Guarantees

CMB Move for Transparency and Security in Fund Markets The Capital Markets Board (CMB) has prepared a comprehensive draft amendment to the “Guide on Investment Funds” to increase oversight and modernize market operations within the investment fund sector.
Focusing on hedge funds and money market funds, the regulation covers a wide range of areas, including investment restrictions, portfolio manager criteria, public disclosure obligations, and risk management.
Timeline for Industry Feedback The draft text has been submitted for review by industry stakeholders.
Representatives are required to submit their feedback forms to the Turkish Capital Markets Association (TSPB) no later than February 26, 2026.
Additional Capital Requirements for Portfolio Management Companies One of the most notable provisions in the draft is the proposed additional capital obligation for Portfolio Management Companies (PMCs).
Under the new regulation, if the size of hedge funds managed by a company exceeds a certain proportion of its total portfolio, the CMB may require an increase in equity.
This measure aims to strengthen the financial structures of institutions managing risky asset groups.
Takasbank Guarantee and Collateral Diversification The regulation plans to transfer the tracking of collateral for over-the-counter (OTC) repo and reverse repo transactions to Takasbank.
These transactions will now be conducted under framework agreements determined by Takasbank, and assets will be held in custody at the institution.
This change is expected to increase transparency and eliminate collateral risks, particularly in money market funds.
Additionally, the practice of providing a single security as collateral in repo transactions will end; instead, it will be mandatory to provide shares from at least five different groups as collateral.
Liquidity Risk and Market Discipline The new draft guide also focuses on managing daily liquidity risks in funds listed on the Turkish Electronic Fund Trading Platform (TEFAS).
By aiming to minimize risks created by investor inflows and outflows during periods of increased market volatility, the CMB seeks to make investment funds more resilient and better suited to changing market needs.