TCMA 2020 ANNUAL REPORT

We Took Actions in Response to the Pandemic Despite the extraordinary circumstances that prevailed globally, all institutions and organizations of the capital markets kept working with commitment, developing new solutions, so that our industry would operate effectively and continue to contribute value to the Turkish economy. Along this line, our members carried on with their activities adopting various schemes such as half-time working, rotating shifts, teleworking or similar models, and executed the running of our markets smoothly in operational terms amid the current circumstances. We were pleased to observe that capital market institutions quickly and effectively adjusted to the new period with all their employees, and produced services strongly for their investors with their products and services. We actively carried on with our efforts as the industry, endeavoring to produce solutions for our country’s fight against the pandemic. As TCMA, we have shared our feedbacks and suggestions regarding facilitation of certain operational processes stipulated by the legislation during the timeframe teleworking/shifting working schemes were implemented, and we informed our members about the decisions adopted in this respect. We Led the Regulatory Framework Concerning our Industry As the Turkish Capital Markets Association, we have carried out comprehensive work for the improvement of the capital market legislation, involving the representatives of non- governmental organizations, capital market institutions and publicly-floated companies in the process. The bill envisaging certain alterations to the Capital Market Law, which was drafted based on these efforts and in close cooperation with the Capital Markets Board (CMB), was ratified at the Grand National Assembly of Turkey and published in the Official Gazette. This revision allows intermediary institutions to extend project finance loans and to set up project finance funds so as to bring those seeking funding for a project together with those wishing to finance a project. While collateralized issuance of borrowing instruments has become possible, the way was paved for the establishment of a board of debt instruments holders, which we predict will be functional in case of non-satisfaction of the liabilities arising from a debt instrument. The bill made the first step for the transformation from an intermediary institution into an investment company, and paved the way for increasing the depth of our industry with new possibilities. As TCMA, we take every opportunity to express the absolute necessity to consider certain fundamental principles when establishing taxation policies regarding capital market instruments and the need for tax incentives. Our suggestions, which we have formulated based on the necessity to decrease withholding rates also for key capital market products so that investors can base their choice for financial products on their risk and return preferences instead of taxation differences, and which we have submitted for consideration by our government, were deemed acceptable. In this context, changes were made to the deduction rates applicable to yields on the debt instruments issued by banks, and to hedge (FC) funds and certain mutual funds set up in accordance with the Capital Markets Law. On behalf of our Association and our industry, we extend our gratitude to all public authorities who have contributed to the enforcement of the regulatory framework. Being the Dispute Center, We Have Finalized the Arbitration Committee Reviews In 2020, the two-year terms of office expired for the present members of the Client Disputes Arbitration Committees that were first set up in 2016 under the Association for the resolution of disputes, which is one of our key duties and responsibilities. The members who will serve in the new term were designated by the Association’s Board of Directors from among the submissions. Client Disputes Arbitration Committee received 773 applications since its establishment to date, 563 of them directly and the remaining 210 through the CMB. 295 of these files have been decided. We Started Working on Updating Public Offering Principles We have also carried out various activities to identify and fulfill our members’ common needs, to contribute to the development of the capital market, and to better understand the expectations of our members and other stakeholders so as to enhance the quality of the services we render. Within the frame of these efforts, we made attempts for setting the standards and principles of public offering, which closely concerns our industry, and of research reports by late 2020. TCMA 2020 ANNUAL REPORT 19