Foreign investors can set up various types of investment funds in Turkey. The legislation favors the establishment of funds based on the strategies the investors use to market them and the portfolio of the funds. Among the new types of funds enabled by the Turkish legislation is the guaranteed fund. These types of funds can also be established as umbrella funds in Turkey.
Our company formation agents in Turkey can offer more information on the legislation governing guaranteed funds.
According to the Capital Markets Board (CMB), the main institution governing and supervising investment funds in Turkey, a guaranteed or an umbrella fund is a fund established in accordance with a specific investment strategy and with a guarantor who, at any point, can guarantee the investor can be repaid the amount put into the fund. The amount that can be recovered by the investor can partial or full. Also, the income generated by the Turkish guaranteed fund can be remitted once the investment reaches a certain maturity which is established in the documents of incorporation of the fund. These documents are usually referred to as the Capital Guaranteed Umbrella Fund.
The guarantors of the fund can be banks or even insurance companies in Turkey. Foreign insurance companies may also act as guarantors for guaranteed funds in Turkey, provided that they meet the requirements of the CMB.
Guaranteed investment funds in Turkey can be established under the form of investment companies, usually set up as public companies. Once the company is registered with the Turkish Register is must issue a prospectus which will be submitted with the CMB for approval. Considering guaranteed funds can be set up as umbrella funds with several sub-funds, each sub-fund must have its own prospectus. Also, the fund must have a depositary.
The greatest advantage of a Turkish guaranteed fund is that is can be registered in a shorter amount of time than other funds.
For complete information on the requirements to open a guaranteed fund in Turkey, do not hesitate to contact us. You can also rely on our company registration consultants in Turkey for the registration of the fund.