TCMA ANNUAL REPORT 2018

Oversight and Dispute Resolution Oversight The Association is authorized and assigned to regulate, supervise and enforce issues delegated to it by legislation or by the Capital Markets Board of Turkey. In this context, various audits are conducted when necessary, and the provisions of the legislation are applied in case of non- compliance. Turkish Capital Markets Association (TCMA) Client Dispute Arbitration Committee The Statute of the Turkish Capital Markets Association charges our Association with the duty to “assist in the resolution of disputes arising from off-exchange transactions among our members or between our members and their customers; set up the arbitration committee and the necessary infrastructure subject to the procedures and principles that will be drawn up for this purpose and approved by the Capital Markets Board of Turkey (CMB)”. The TCMA Client Dispute Arbitration Committee Guidelines drawn up based on the above mentioned duty sets out the formation, power, duties and responsibilities of the arbitration committee and the principles and procedures for applying to the arbitration committee and for conclusion of applications. The Turkish Capital Markets Association Client Dispute Arbitration Committee reviews and resolves the disputes which arises from or in relation to off-exchange capital market transactions among the Association members engaged in capital market activities (intermediary institutions, banks, asset management companies and investment trusts) or between such the Association members and their clients and which may entail clients’ claims for damages, losses and compensation. The 2-year terms of office of the existing members serving on the Arbitration Committee, which was first set up at the Association in 2016, expired at the end of 2018. Arbitration Committee members who will be serving in the new period were identified by the Association’s Board of Directors from among the applicants. Ever since its establishment, the arbitration committee received 455 applications in total, 267 of which were submitted directly and the remaining 188 via the CMB. The table below summarizes the status of these applications: 2018 Summary Table of Applications to the Arbitration Committee Number File in Preparation 9 Under Review by the Arbitration Committee 85 Decided 237 Decided. Unchallenged and finalized. 178 Decided. Notified to the CMB on account of being contradictory to law. 19 Challenged 40 Decided. Referred to CMB following the challenge, CMB’s decision awaited. 25 Decided. Under review by the Arbitration Committee due to the post-challenge CMB reversal. 3 Decided. Post-challenge CMB approval, thus the decision is final. 12 Settled and withdrawn. 63 Rejected - Irrelevant to the Arbitration Committee’s scope. 61 TOTAL 455 55 TCMA 2018 ANNUAL REPORT