Legal Newsletter Q3/2014  
 


Read below the latest legal developments in Turkey. This latest roundup provides insight on the latest amended and repealed laws and regulations affecting different sectors.

To discuss how these developments affect your business interests please contact Fethi Pekin, Managing Partner. Email: fpekin@pekin-pekin.com

 
 
 

BANKING & FINANCE

Introduction of IRB and Advanced Measurement Approaches

In order to ensure that the national legislation is consistent with the Basel II guidelines, on September 6, 2014, the Banking Regulation and Supervision Agency (the "BRSA") has issued an amendment to the Regulation on the Capital Adequacy of Banks (the "Regulation") (published in the Official Gazette dated June 28, 2012 and numbered 28337) which has introduced and allowed the use of the Internal Ratings-Based (IRB) Approach and the Advanced Measurement Approach (AMA) in national legislation. The IRB Approach allows banks to use their own estimated risk parameters in the calculation of their capital adequacy as the banks are allowed to use their own internal rating systems for their counterparties and exposures to credit risk. Only the Banks which have received the consent of BRSA can use the IRB approach method. The Advanced Measurement Approach (AMA) of operational risk allows banks to develop their own models of quantifying required capital for operational risk. The use of AMA is also subject to the approval of the BRSA. Under AMA the banks are allowed to develop their own empirical model to quantify required capital for operational risk. Banks can use this approach only subject to approval from their local regulators. Once a bank has been approved to adopt AMA, it cannot revert to a simpler approach without supervisory approval.

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More Banking & Finance Articles available online:

Securitization Risk Weight Calculation Revised

The amount of the Required Reserves which may be held as USD has been amended

Principle of Proportionality and Handbooks Regarding Good Practice

Regulation Regarding the Assessment Phase of the Internal Systems and Internal Capital Adequacy of Banks

FCIB introduced Communiqué No. 13 regarding the Procedures and Principles on the Suspicious Activity Reports

 
 

CAPITAL MARKETS

Establishment of the Modern Mortgage System

With the Communique No. III-60.1 on the Principles regarding Mortgage Finance Institutions (published in the Official Gazette dated July 17, 2014, No. 29063) ("Communiqué"), mortgage finance institutions have been regulated for the first time in Turkey, in order for the establishment of modern mortgage system. According to the Communiqué, in parallel with the global practice, the mortgage finance institutions are expected to engage in the activities in two main fields of operation: liquidity facility and securitization.

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More Capital Markets Articles available online:

Duties and Authorities of the Central Registry Agency

Dematerialized Capital Market Instruments

CMB Redetermines the Licensing Requirements

Update on the Guide regarding Investment Services and Activities and Investment Institutions

 
 

DISPUTE RESOLUTION

Various Amendments to the Labour Code

The Law Amending the Labour Code and Certain Laws and Decree Laws and Restructuring Certain Receivables was published in the Official Gazette dated September 11, 2014 and numbered 29116 bis (Law No. 6552) (the "Law No. 6552"). The Law No. 6552 has introduced several amendments to the Labour Code (Law No. 4857) (published in the Official Gazette dated June 10, 2003 and numbered 25134) (the "Labour Code") concerning underground employees and sub-contracting practices.

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CORPORATE

Environment

Completion of the File Allowed at Applications for Environmental Permit and Licenses

A new Environmental Permit and License Regulation (published in the Official Gazette dated September 10, 2014 and numbered 29115) has ben published by the Ministry of Environment and Urban Planning in order to be effective as of November 1, 2014 and repealed the former regulation.

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More Corporate Articles available online:

Revocation Not Allowed in Certain Privatization Cases

Internal Directive Necessary for Commercial Agents and Representatives

No Attorney Fee for the Consumer Arbitration Committee

Others – All Sectors

 
 

EMPLOYMENT

Notification of Foreigners after the Receipt of Work Permit

The Regulation on Social Insurance Transactions (published in the Official Gazette dated May 12, 2010 and numbered 27579) was amended on May 3, 2014. The amendment regulates notification requirements for foreign employees.

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More Employment Articles available online:

Three year Period for the Inclusion of Registration Number in Periodical Control Reports

Statutory Minimum Wage

Other Regulations

 
 
 
     
This legal newsletter has been prepared for informational purposes only; it has not been prepared for advertising purposes or with the intention of creating an attorney-client relationship. It does not seek to provide information on all legal developments in Turkey with the quarter specified. None of the information contained in this legal newsletter shall constitute legal advice or anything akin thereto. To unsubscribe email the Editor: newsletter@pekin.pekin.com
 
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