TSPB ANNUAL REPORT 2019

26 TCMA 2019 ANNUAL REPORT INITIATIVES Borsa Istanbul Dispute and Discipline Committees The Capital Markets Instruments Conflict, Disciplinary, Precious Metals Market and Precious Metals Lending Market Disputes and Precious Metals and Stones Markets Discipline Committee’ terms, operating at Borsa Istanbul, expired on 23 November 2019. The candidacy applications were compiled by our Association for the new elections to be held by the Borsa Istanbul Board of Directors. The lists consisted of at least three times as many candidates as the Committee Members to be retired. In this context, the list of candidates who applied to our Association in writing, wishing to apply for the selection of committee members was submitted to Borsa Istanbul. Companies engaged in Rating and Ranking Activities of Collective Investment Companies Our Association evaluates the applications in line with Circular, which determines the procedures and principles of the collective investment institutions’ review and activities regarding the rating and ranking activities. In this context, OHE Consultancy Services was listed as deemed suitable to carry out the subjected activity. Accordingly, the companies listed by our Association are announced on our website. Minimum Initial Capital Procedure Implementation of Asset Management Companies Our Association’s request for the postponement of the Capital Markets Board (CMB) resolution’s foreseeing an increase in the minimum initial capital requirement to 1 January 2020 was conveyed to the CMB. Fund Service Units and Fund Custody Services Sub- committee were Established The “Fund Service Units and Fund Custody Service Sub- Committee” was established within the Asset Management Companies Professional Committee in 2019 to evaluate technical and detailed issues. Based on the need to improve fund operations and custody processes, the initial meeting of the sub-committee was held on 25 October 2019. The sub-committee made recommendations to the Asset Management Companies Professional Committee on various issues, such as the trading of hedge funds at Turkey Electronic Fund Trading Platform (TEFAS) and the valuation of products in fund portfolios. Opinion on the Pension Funds’ Performance Measurement In February 2019, sector opinions were conveyed to the General Directorate of Insurance of the Republic of Turkey Ministry of Treasury and Finance, under the headings of performance evaluation, evaluation criteria to be set, asset management company shifts and fund management expenses distribution. Pension Funds’ Performance Evaluation By the Capital Markets Board (CMB) resolution published in May, a Committee was established in July to measure and evaluate the pension funds’ performance. The Committee comprised of representatives from the Pension Monitoring Center, Insurance Association of Turkey and our Association set up the criteria for evaluation of the funds in line with the relevant regulations. Our Recommendation Towards Increasing Transparency in Pension Funds Mandatory announcements are published in the Public Disclosure Platform (KAP) by the founders of mutual funds and pension funds to ensure that investors can access accurate, comprehensive and complete information simultaneously. Our Association took an initiative in December 2019 before Capital Markets Board, intending to eliminate the differences between the disclosures made by these two types of funds.