TCMA ANNUAL REPORT 2018

Initiatives Changes to the Regulatory Framework The Capital Market Law no. 6362 entered into force upon being published in the Official Gazette on 30 December 2012. Ancillary regulations to the new Capital Market Law were enforced on various dates following the enforcement of the Law. In a bid to help develop the capital markets, the Association initiated a study about the regulatory changes that need to be made in the Capital Market Law and ancillary regulations in force in order to: · simplify the legislation, · identify the problems experienced in practice due to the Capital Market Law and the ancillary regulations in force and solution of these problems, · devise new practices that can be introduced to drive the development of capital markets. As the first step, member feedbacks and suggestions were collected in relation to regulatory changes in view of the entire regulatory framework governing the capital market, which will be taken into consideration in the relevant studies to be carried out. In line with the member feedbacks and suggestions, four task forces were set up depending on their fields of activity: Intermediary Activities Legislation, Companies Financing Legislation, Institutional Investors Legislation, Other Legislation. These task forces began working to compile and develop the feedbacks and suggestions of the Association and relevant non-governmental organizations. Account Opening Processes of Investment Firms and Capital Market Transactions General Framework Agreement With the Association’s General Letter no. 799, the members were informed about the decisions passed in the Capital Markets Board of Turkey (CMB) meeting numbered 18 held on 16 April 2018 as a result of the Association’s attempts for enabling conclusion of distance contracts between investment firms and customers and for facilitating the account opening processes. The said decisions are summarized below: · As part of the investment firms’ obligation to conclude a written contract with their customers concerning the activities and services to be furnished under the CMB Communiqué on Establishment and Activities of Investment Firms, the relationship between an investment firm and investors may be established by having the Capital Market General Framework Agreement signed, without prejudice to the provisions of the Law no. 5549 on Prevention of Laundering Proceeds of Crime dated 11 October 2006 and of other applicable legislation; · Once the contractual relationship is established by having the “Capital Market General Framework Agreement” signed, and before the commencement of trading, customers’ signatures must be obtained on framework agreement(s) covering detailed provisions that will form the basis of investment services and activities Our innovative efforts aimed at deepening and strengthening our sector continued in 2018. 24 TCMA 2018 ANNUAL REPORT