TSPB ANNUAL REPORT 2019

25 TCMA 2019 ANNUAL REPORT Real Estate Appraisal Minimum Fee Tariff Based on the Capital Markets Board’s (CMB) related Article, the principles on the minimum fee tariff that the Turkish Appraisers Association members be provided for their appraisal services are set by the CMB with taking our Association’s opinion, and accordingly published in the Official Gazette. In this context, a draft that was requested by the CMB on the “Minimum Fee Tariff and Implementation Principles on Real Estate Valuation” which will be implemented in 2020, was shared with the related members of our Association. In line with the opinions and suggestions of our members, our Association provided an assertive opinion regarding the issue which was then conveyed to the CMB. Contribution to the Republic of Turkey Ministry of Finance Tax Expenditure Report Our Association collected individual investors’ net equity profit/ loss data for the year 2018 from member brokerage firms and banks in order to contribute to the Tax Expenditure report prepared by the Ministry of Finance in June. Deadlines for Independent Audit on the Information Systems The partially and broadly authorized intermediary institutions and asset management companies with an equity of more than TL 5 million, were subject to independent auditing for the first time in 2019, within the framework of the Capital Markets Board’s (CMB) “Information Systems Independent Audit Communiqué”. Our Association’s opinions and recommendations for postponing the deadline of the initial independent audit for the Information Systems to 2020 have been conveyed to the CMB, and the relevant CMB decision was announced to our members with the General Letter (no:824), dated 31 January 2019. The opinion and recommendations of our Association regarding the postponement of the audit obligation based on the “Information Systems Independent Audit Communiqué”, required for asset management companies with equity of TL 5 million or less have also been conveyed to the CMB and the related decision by the CMB was announced to our members with a general letter, (no:818), dated 14 November 2019. Circular Amendment on the Principles Regarding Rating and Ranking Activities of Collective Investment Undertaking The circular amendment, including the provisions not to be executed, was issued with the circular (ref no:43) and announced to our members subjecting that; the annual listing and the listing fee to be applied on the institutions, requested to be facilitated with the rating and ranking services, not to be disclosed until the Association’s declaration, in order to increase awareness, inform investors fully and correctly about risks and returns and support the market-growth in a fair and competitive environment. Tax Council Studies Our Association, which actively participates in the Income Tax and Corporate Tax activities carried out within the Tax Council, contributed to the Sub-Task Force report on “the securities income tax” and “acquisition of individuals’ company shares”. JCR Avrasya Rating Partnership Within the scope of extensive use of the credit rating agencies, a partnership was established with JCR Avrasya Rating, to initiate national rating activities, distribute domestic financial resources more effectively and increase recognition in the international markets. As a result of the negotiations to purchase the shares of JCR Avrasya Rating, partners with the Japan Credit Agency Ltd., an internationally recognized company, carrying awareness and experience; the Share Transfer Agreement and the Shareholders Agreement were signed. Mortgage Finance Partnership The applications were submitted with other partners to establish a mortgage finance company for asset acquisition, asset transfer, management of the transferred assets and collateralization of the assets whose types and qualities are determined by the Capital Markets Board (CMB) under the scope of the “asset management and mortgage-backed securities” and within the framework of the provisions of the Turkish Commercial Code (No. 6102) and the Capital Markets Law (No. 6362)., to issue capital market instruments in exchange of these assets and perform other activities deemed appropriate by the CMB.