Legal Newsletter 4/2016  
 

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 This latest roundup provides insight on the latest amended and repealed laws and regulations affecting different sectors.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

Q4/2016 Amendments to the Communiqué on Mandatory Reserves

The Central Bank of the Republic of Turkey (the “CBRT”) has amended the Communiqué on Mandatory Reserves (Communiqué no. 2013/15) (published in the Official Gazette dated December 25, 2013 and numbered 28862) (the “Communiqué”) on October 22, 2016, on November 1, 2016, on November 19, 2016, on November 26, 2016 and finally on January 11, 2017.

The required reserve ratios to be allocated for foreign exchange liabilities had been decreased for a rate of 0.5 % for each maturity with the amendment dated November 26, 2016 and have been further decreased for a rate of 0.5 % for each maturity with the amendment dated January 11, 2017. Additionally, the amendments dated November 26, 2016 and January 11, 2017 decreased the required reserve rates for a rate of 1 % (0.5 % each) for foreign exchange liabilities other than deposits/participation funds existing as of August 28, 2015 for each maturity.

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More Banking & Finance Articles available online:

Q4/2016 The Law on Pledge over Movable Assets in Commercial Transactions and the secondary legislation related thereto have entered into force as of January 1, 2017

Q4/2016 Communiqué on Maximum Interest Rates to be Applied to Credit Card Transactions is issued

Q4/2016 Amendments to the Communiqué on Printing Forms of Checkbooks, on Amounts which the Banks are Obliged to Pay to the Holders and on Notification and Announcement of Prohibition Decisions on Check Issuance and Opening Check Accounts

Q4/2016 Amendment to the Regulation on the Principles and Procedure regarding the Provision of Foreign (Cross-Border) Financing within the scope of Law No. 4749

Q4/2016 Amendment to the Regulation on Measurement and Evaluation of Capital Adequacy of Banks

Q4/2016 Amendment to the Regulation on Procedures and Principles for Determination of Qualifications of Loans and Other Receivables by Banks and Provisions to be Set Aside

Q4/2016 Amendment to the Regulation on Credit Transactions of Banks

Q4/2016 Amendment to the Regulation on Accounting Practices and Financial Statements of Financial Leasing, Factoring and Finance Companies

Q4/2016 Amendment to the Regulation on Procedures and Principles for Qualifications of Loans and Provisions to be Set Aside

Q4/2016 Amendment to the Communiqué on Uniform Accounting Plan and Prospectus to be applied by Participation Banks

Q4/2016 Amendment to the Communiqué on Uniform Accounting Plan and Prospectus

Q4/2016 Communiqué on Implementation of Barcode Checks has been introduced on December 31, 2016

 
 
 

CORPORATE

Q4/2016 GENERAL CORPORATE

  • The Communiqué on the Signing of Articles of Incorporation of Companies before Trade Registry Offices (the “Communique”) has been published in the Official Gazette dated December 6, 2016 and numbered 29910. The Communiqué regulates the procedures and principles during the signing of articles of incorporation of the companies and signature declarations before Trade Registry Offices.

As per Article 5 of the Communiqué, the founders or their representatives shall sign the articles of incorporation before the provincial directorate of Trade Registry where the company will be incorporated. The representatives must submit a document (e.g. notarized power of attorney) which indicates their authority and power to sign on behalf of founders. In case the articles of incorporation which has been signed before the Trade Registry Office has not been submitted to the Trade Registry in three months as of the date of approval, the founders must made a declaration expressing their willing to proceed the incorporation process

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Q4/2016 ENERGY & NATURAL RESOURCES

Q4/2016 EMPLOYMENT

Q4/2016 COMPETITION

Q4/2016 REAL ESTATE

 
 
 

CAPITAL MARKETS

Q4/2016 Establishment of Money Market in Borsa İstanbul A.Ş.

A regulated money market (“Market”) has been established in the Turkish exchange; Borsa İstanbul A.Ş. (“BIST”), where collateralized borrowing and lending transactions of banks and brokerage firms supplying and demanding Turkish Lira are executed. Banks and brokerage firms authorized in accordance with the BIST regulations and İstanbul Takas ve Saklama Bankası A.Ş. (“Takasbank”) may trade on the Market.

Members may place orders for their own accounts, and for the accounts of investment funds / investment trusts and customers, whilst Takasbank provides central counterparty (CCP) service for the Market and guarantees the settlement by acting as buyer to the seller and seller to the buyer for any transaction executed.

 
 
 

DISPUTE RESOLUTION

Q4/2016 The Expert Law Entered into Force

The Expert Law was published in the Official Gazette dated November 24, 2016 and numbered 29898 (Law No. 6754). Expert opinion is widely used as a tool in courts throughout different justice systems and is also a very important part of the Turkish judicial system. However, according to the Turkish Ministry of Justice, the previous system of experts was an obstacle to the efficiency and effectiveness of the judicial system since the laws and provisions on experts have been spread out throughout many different laws and regulations. Law No. 6754 aims to develop and improve the current judicial system and bring together all the provisions that apply to expert opinions. Therefore, introducing a law that brings a coherent system regarding this field is a significant step for development of the judicial system. Limiting the scope of the mission of an expert is one of the most important points of Law No. 6754. In the new law, the scope of the mission of an expert is limited to questions of fact. This means that experts can no longer be used to answer or examine questions of law which is an issue at the sole discretion of judges.

Furthermore, Law No. 6754 establishes the rules concerning the qualifications for experts, their education, and how they will be audited. This way, it hopes to form an effective and active organizational structure. Law No. 6754 is divided into three sections:

The articles of the first part are primarily focused on the guiding principles for experts. Their duty should be guided by principles such as righteousness, independence, impartiality, confidentiality and objectiveness.

The second part of the Law establishes the organizational structure. This organizational structure concerning experts is an entire new level for the development of the court proceedings in Turkey. Embedded within the Ministry of Justice, the new structure includes a Department of Experts, an advisory committee for experts and numerous regional committees for experts. These units focus on issues regarding experts; their registry, acceptance, fees etc.

The final part of the Law focuses on the conditions required to be accepted or banned as an expert; these include but are not limited to educational conditions, technical expertise, five years’ experience etc. The Law No. 6754 also introduces an opportunity for legal entities to produce expert opinions meaning that not only real persons but also legal entities shall serve as experts to assist the Courts concerning the legal proceedings.

 
 
 
 
     
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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