TSPB ANNUAL REPORT 2019

23 TCMA 2019 ANNUAL REPORT Principles to be followed in the Asset Valuation Excluding Real Estate in the Scope of the Capital Market Legislation The sectoral opinion was shared with the Capital Markets Board of Turkey (CMB), regarding the draft resolution on the Capital Markets Legislation about “Asset Valuation Excluding Real Estate”, to amend the principles released to public by the CMB (Decision No.37/875), on 17 July 2003 that is to be implemented for the “Asset Valuation Excluding Real Estate” under the scope of the capital markets legislation. Minimum Requirement Elements to be Included in the Non- Real Estate Assets Valuation Reports Under the framework of the mandate given to our Association within the resolution, (ref no: 21/500), dated 11 April 2019, taken at the Capital Markets Board (CMB) meeting, “Minimum Requirement Elements (minimum requirements) to be included in the Non-Real Estate Assets Valuation Reports” which was conducted jointly by Turkish Appraisers Association (TDUB), submitted to the CMB. The minimum requirements, submitted to the CMB on 6 September 2019, were approved on at the CMB meeting (ref no: 55/1294). The minimum requirement factors were announced to our members with the Circular No.42 of our Association, dated 9 October 2019, to be used in the valuation reports within the scope of the relevant resolution, and were published on the Association’s website. Equity-based Crowd Funding Communiqué Draft As the Crowdfunding Platforms are established which mediate crowdfunding and provide electronic services; their commencements are subject to the Capital Markets Board of Turkey (CMB) authorization, within the framework of the “Draft Crowdfunding Communique”, published by the CMB, on 3 January 2019. In order to convey the sector opinion regarding the Draft Communiqué to CMB, our members were asked to submit their views and recommendations to our Association in writing until 28 January 2019. Furthermore, meetings were held with the Crowdfunding Association and managers of project companies, operating in our country on 18 January 2019, and members of the Association representatives on 22 January 2019, in order to evaluate the crowdfunding practices by exchanging views within the framework of the “Draft Communiqué” and to discuss the sector demands, regarding the issue. The opinions and suggestions, conveyed by our members and the issues that were deemed essential by the Association regarding the draft Communiqué, were shared with the CMB. Principles for the Intermediary Institutions in the Commodities Exchange The Association’s opinion on the membership method of capital market intermediary institutions included in the Draft Regulation on “Intermediary Activities and Surveillance and Control of Intermediaries” of the Mercantile Exchange of Turkey (Exchange), which the Capital Markets Board of Turkey (CMB) has completed the establishment procedures, were requested to be conveyed to the CMB. Upon this issue, our members’ opinions and remarks were shared with the CMB. Proposed Amendments on the Provisions of the Regulations regarding Exchanges’ and Market Operators’ Establishment, Activity, Operation, and Audit Principles Concerning the proposal of Borsa Istanbul to be submitted to the Capital Markets Board of Turkey (CMB), regarding the amendment to the “Regulation on the Establishment, Operation, and Audit Principles of the Exchanges and Market Operators”(Regulation); we conveyed our opinion that it would be beneficial to include a provision to ensure that some of the members of the board of directors of the exchanges that have been established and operating within the framework of the Regulation, must have professional experience in the capital markets. Private Equity Funds Our Association applied to the Republic of Turkey Ministry of Commerce, the Ministry of Industry and Technology, the Ministry of Treasury and Finance and the Capital Markets Board of Turkey (CMB), to solve the problems that the asset management companies encounter in their commercial registry applications due to their legal status during the process of their private equity investments.