By Firat Kozok | Updated on Oct 09, 2026 at 02:08 PM
Turkish portfolio-firm managers will be held accountable for recovering losses and repaying investors trapped in liquidated funds, according to a draft law AK Party lawmakers submitted to parliament on Friday.
Investors will receive interim payments of as much as 1 million liras ($20,266) each, according to a draft seen by Bloomberg. Those whose net investment is below that threshold will receive their full sum.
The bill is among the first concrete steps the Turkish government has taken to resolve a funds crisis that erupted last month. Two main investment funds run by Tera Portfoy Yonetimi AS and Pusula Portfoy Yonetimi AS defaulted on their redemptions in mid-September, sparking market turmoil that exposed what the justice minister called a broader “Ponzi-like scheme” among many funds.
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Since then, how 131 funds run by seven firms would be liquidated has been a lingering question mark.
According to the draft law, which is subject to change, the Central Securities Depository will calculate each investor’s net investment and price in the cost of inflation.
If portfolio management companies cannot pay what investors are owed, responsibility will fall to various people tied to the companies, including former managers.
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The draft law appoints the state-run Savings Deposit Insurance Fund to handle assets that are seized in criminal probes and can’t be returned to a fund. It also grants the entity the ability to sell such assets without having to wait for court verdicts.
Authorities have arrested dozens of executives so far and say investigations into the funds are ongoing.