Significant amendments to the Communiqué on Portfolio Management Companies



Recent Developments

The Communiqué Amending the Communiqué on Principles Regarding Portfolio Management Companies and Their Activities (“Communiqué“) was published in the Official Gazette on 18 February 2023. The Communiqué is available here.

What’s new?

The Communiqué introduces significant amendments such as the following:

1. Sub-portfolio management

The Communiqué clarifies that Turkish portfolio management companies (“PMC“) can manage the portfolio of a PMC that is resident abroad.

2. Capital requirements

The minimum initial capital required for the incorporation of PMCs was increased to TRY 30,000,000 (from TRY 6,000,000).

In addition, the minimum equity requirements for PMCs were also increased. Accordingly, PMCs will need to meet the following thresholds depending on the size of the portfolios they manage:

Portfolio under managementMinimum equity
Up to TRY 1,000,000,000TRY 30,000,000
From TRY 1,000,000,001 to TRY 4,000,000,000TRY 40,000,000
From TRY 4,000,000,001 to TRY 36,000,000,000TRY 50,000,000
Higher than TRY 36,000,000,000TRY 100,000,000

The arithmetic average of the size of the portfolio under management according to the capital adequacy tables of the preceding three months will be taken as basis for determining applicable equity thresholds. However, PMCs that are managing a portfolio of over TRY 72,000,000,000 will also be required to have additional equity equal to 0.02% of the amount that exceeds TRY 72,000,000,000. In addition, PMCs whose equity exceeds TRY 200,000,000 will not be required to provide additional equity in this regard.

3. Number of portfolio managers to be employed by the PMCs

The PMCs will be required to employ the following number of portfolio managers (portföy yöneticisi) depending on the size of the portfolio under management.

Portfolio under managementMinimum number of portfolio managers
Up to TRY 1,000,000,0003
From TRY 1,000,000,001 to TRY 4,000,000,0004
From TRY 4,000,000,001 to TRY 36,000,000,0005
Higher than TRY 36,000,000,0006

In addition, the portfolio managers to be employed by the PMC will be required to be employed full time and exclusively to fulfill these duties. 

4. Liaison offices

In addition to branches and agencies, the PMCs will be able to establish liaison offices in Türkiye or abroad.

The Communiqué designates liaison offices as service units that are responsible for promoting PMCs and their activities. PMCs will be able to establish liaison offices provided that the following conditions are met:

  • Having the space and technical equipment necessary to provide thee service
  • Employment of a liaison office manager who meets the conditions specified in the Communiqué on Principles Regarding Portfolio Management Companies and Their Activities, along with sufficient number of personne


PMCs that obtained establishment and operation permits from the Capital Markets Board (“Board”) prior to 18 February 2023 will be required to comply with the amendments introduced by the Communiqué until 30 June 2023. This period may be extended up to six months if there are reasonable grounds deemed appropriate by the Board.

Tagged withEsin Attorney Partnership, Muhsin Keskin, Bora KılıçBanking, Finance & Capital Markets, Portfolio Management Companies

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