TSPB ANNUAL REPORT 2017

International Valuation Standards Council (IVSC), and the same were announced to our members with our Circular no. 37 and published for the general public on 1 February 2017. The principles published by the IVSC in January 2017 were updated; in view of the latest revisions and new features, the International Valuation Standards released by our Association needed to be revised. Within this framework, updated “International Valuation Standards”, which were formulated based on the standards published in January 2017 by IVSC as a result of the collaboration of our Association and TDUB Standards Committees and prepared by both Associations, were published in attachment to our Circular no. 38. Investor Compensation Center Dues Membership dues to be paid to the Investor Compensation Center (ICC) have been evaluated with respect to intermediation costs, and the CMB has been informed of our opinions and suggestions as follows: · ICC assets that will accrue on 31 December 2017 be deemed adequate as protection coverage and ICC holdings of 31 December 2017 be determined as the minimum limit, · No dues be collected from our members for the period of time ICC holdings remain above the assets of 31 December 2017. Promotion Campaigns Pursuant to the CMB requirements, promotion campaigns in relation to capital market activities by intermediary institutions and banks are notified to the Association prior to implementation, and planned campaigns can be held only after applications are reviewed and approved. During 2017, the Association reviewed 46 applications by members and informed the related parties on its conclusions. Private Pension System, Automatic Enrolment Implementation Principles Published by T.R. Prime Ministry Undersecretariat of Treasury and set by the Office of the Deputy Prime Ministry, “Private Pension System, Automatic Enrolment Implementation Principles” came into force on 1 January 2017. Operating under the Association, Asset Management Companies Professional Committee reviewed the provisions in the document, and the sector’s opinions and suggestions about the topic were presented to the CMB and Undersecretariat of Treasury. Distribution of Fund Management Charges in the Private Pension System The Association sent the Undersecretariat of Treasury a memo in order to set the minimum ratio of distribution of fund management costs between private pension companies and asset management companies, and to make sure that the institutions in both sectors operate healthily. The memo addressed the distribution of fund management charges in the private pension system as well as the its potential impact on the Turkish capital markets. Activities for Developing the Private Pension System The sector’s feedback was gathered in relation to the fund management cost distribution and collection of performance fees within the scope of the Draft Law Amending the Law on Private Pension Saving and Investment System that regulates automatic enrollment of public and private sector employees in a private pension plan. The Asset Management Companies Professional Committee devised a classification of pension funds so that investors can get a better idea about the investment strategies of the existing pension funds based on voluntary participation. The classification will also enable more effective comparison of the risks and returns of funds that have a similar investment strategy. The said classification was designed according to “asset” classes in line with the “TCMA Mutual Funds 21 TCMA 2017 Annual Report