CMB Introduces New Regulations for Investment Funds: Strict Oversight for Hedge Funds and REIFs

Industry Feedback Deadline Set for February 2026 The Capital Markets Board (CMB) has submitted a draft text proposing extensive amendments to the "Guidelines on Investment Funds" to industry representatives through the Capital Markets Association of Türkiye (TSPB).
Institutions are required to submit their opinions and suggestions regarding the draft by February 26, 2026.
The proposed regulation covers a wide range of areas, including hedge funds (serbest fonlar), money market funds, repo transactions, and public disclosure obligations.
New Limits and Capital Requirements for Hedge Funds According to the draft, the number of funds issued under a hedge umbrella fund by a portfolio management company will be limited to a specific multiple of the number of portfolio managers employed by the company.
Funds under the same umbrella must be significantly differentiated in terms of strategy, asset types, or management fees, while restrictions will be placed on funds with similar strategies.
Additionally, companies whose portfolios consist largely of hedge funds will be required to undergo a cash capital increase.
Investment Limits and Risk Management Investment limits for hedge funds are being tightened.
Investments in capital market instruments belonging to issuers where the fund manager has management control, or to the manager's own group, may not exceed a certain percentage of the fund's total value.
For over-the-counter (OTC) repo and reverse repo transactions, the signing of a Takasbank standard framework agreement and the storage of collateral within Takasbank will be mandatory.
In money market funds, equity repo transactions will be limited to 25% of the fund's total value, while at least 10% of the portfolio must be invested in government debt securities (DİBS).
Sales Restrictions for REIFs and VCIFs Under the new rules for Real Estate Investment Funds (REIF/GYF) and Venture Capital Investment Funds (VCIF/GSYF), if shares of a publicly traded company are transferred into the fund, the sale of these shares on the stock exchange will be prohibited for three months for REIFs and one year for VCIFs.
Furthermore, these funds will not be permitted to act as buyers in share transactions conducted via special orders or in the wholesale market.
Transparency and Public Disclosure Portfolio distribution reports for hedge funds traded on TEFAS will now be disclosed bi-weekly instead of monthly.
The Central Securities Depository (MKK) will announce investors holding 50%, 60%, and 70% stakes in these funds on the Public Disclosure Platform (KAP).
The regulation also prohibits funds that do not have the word "Foreign" in their title from using the names of foreign countries or regions.
Additionally, it will become mandatory to appoint at least two portfolio managers for every fund.