Turkey investment fund crisis triggers regulatory scrutiny

Turkey is facing a significant investment fund crisis that has drawn intense scrutiny toward the Capital Markets Board (SPK). The crisis involves allegations of market manipulation, particularly regarding funds trading in low-float stocks during the final fiscal quarter of 2025. While Treasury and Finance Minister Mehmet Şimşek acknowledged existing gaps in manipulation oversight, critics and opposition politicians argue that the SPK failed to intervene despite visible financial irregularities in companies like Tera Portföy Yönetimi AŞ.

In response to the crisis, President Recep Tayyip Erdoğan stated that all responsible parties will be held accountable through legal investigations. To mitigate the impact on retail investors, the government is considering a rapid payment plan for those with balances under 1 million TL. These payments may be prioritized for money market funds and sourced from Takasbank collateral or government debt securities.

Some portfolio management companies, including Bulls Portföy, Pardus Portföy, and A1 Capital Portföy, have offered to settle investor payments using their own resources, which may allow their funds to be removed from the ongoing liquidation list. The SPK had previously halted trading for certain funds to prevent further investor losses.