Legal Newsletter Q2/2014  
 

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 This latest roundup provides insight on the latest amended and repealed laws and regulations affecting different sectors.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

Prohibition on Cross-Border Revolving Facilities

The Capital Movements Circular was amended in May and an additional paragraph was incorporated under Clause 1.1.1 (Utilisation of the Loan) of Section III (Credits). The new paragraph states that a Turkish resident borrower may not utilise a loan (within the credit limit determined under the agreement executed by and between a foreign bank/credit institution and the Turkish borrower) which (i) does not have a specific maturity date, (ii) has different interest rates (determined as per each loan), (iii) enables such borrower to borrow, repay and re-borrow on different dates and (iv) enables such borrower to utilise the loan in the form of current account credit.

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More Banking & Finance Articles available online:

Payment Services, Electronic Money Issuance, Clearing and Settlement of Securities

Instalment Threshold for Gift Cards and Cheques

Consumer Finance Protection

Regulation on Unfair Contract Terms

Prevention of Laundering of Crime Revenues and Financing of Terrorism

 
 
 

CAPITAL MARKETS

Scope of the “Issuer” and “Capital Market Instrument” Definitions in Market Abuse

The Capital Markets Board passed Decision No. 17/563, dated June 5, 2014 (the “Decision”) in order to determine the scope of the definitions of the “issuer” and “capital market instrument” stated in Communiqué No. VI-104.1 on Market Abuse Actions and Communiqué No. VI-103.1 on the Payment of the Managers Regarding Their Net Trade Incomes to the Issuers.

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More Capital Markets Articles available online:

The Term “Accounting Period” in Market Abuse Set by CMB Decision

Cross-Border Activities of Portfolio Management Companies

CMB Issues the Guide regarding Special Event Disclosures

CMB Issues the Guide regarding Investment Services and Investment Institutions

 
 
 

COMPETITION

Annual Activity Report of the Competition Board

The Annual Activity Report (the “Report”) for the year 2013 was published by the Competition Board (the “Board”) on April 14, 2014. The Report includes statistical information regarding files examined within the year 2013. The Board examined 191 files regarding claims of violation of competition rules, 37 of which were in petroleum, petro chemistry and petroleum products sector. Additionally, the Board decided over 58 files on Negative Clearances/Exemptions. The Pharmaceuticals sector, with 12 files, and Capital Market, Finance and Insurance Services sector with 11 files each were leading sectors in such decisions of the Board.

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Consumer Goods & Retail

New Regulations Under Consumer Protection Law

The After Sale Services Regulation (published in the Official Gazette dated June 13, 2014 and numbered 29029) (the “Regulation”) was issued by the Ministry of Customs and Trade based on the Consumer Protection Law which recently entered into force. The Regulation introduces several changes to the abolished After Sale Services Regulation (published in the Official Gazette dated June 14, 2003 and numbered 25138) (the “Abolished Regulation”). Authorized service stations are now liable for services rendered. Moreover, service stations shall also prepare a service slip when returning a product to the consumer in addition to a service slip being prepared when receiving a product. Service slips to be prepared shall include the information listed under Article 11 of the Regulation, which are more detailed now compared to the Abolished Regulation. All documents and information including such service slips of each work shall be kept for 3 years..

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DISPUTE RESOLUTION

Regulation on Unfair Contract Terms

The Ministry of Customs and Trade issued a regulation on unfair contract terms in consumer contracts (“Regulation on Unfair Contract Terms”) which was published in the Official Gazette dated June 17, 2014 and numbered 29033. The Regulation on Unfair Contract Terms substantially follows Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts. According to the Regulation on Unfair Contract Terms, contract terms which have not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract to the detriment of the consumer. A term shall always be regarded as not individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term, particularly in the context of a pre-formulated standard contract. If the drafter claims that a standard term has been individually negotiated, he shall bear the burden of proof. Nevertheless, the fact that an individual clause was negotiated shall not prevent the application of the Regulation to the rest of the contract.

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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. According to the amendments at Article 11, the information in regard to the foreigners shall be delivered to the Social Security Institution by employers within 45 days following the start date or the receipt of the work permit, as the case may be. In other words such notifications shall be deemed as if it is made within the required period.

More Employment Articles available online:

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

Statutory Minimum Wage

Other regulation

 
 
 

ENERGY

Mining Permits

The Regulation Regarding Implementation of Article 16 of the Forestry Law (published in the Official Gazette dated April 18, 2014 and numbered 28976) was issued by the Ministry of Forestry and Water Affairs (the “Ministry of Forestry”) in order to regulate permits, improvement activities and fees to be collected with respect to the permits regarding mining exploration, activity, facility, infrastructure and operation activities (“Mining Permits”), by abolishing the former regulation.

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More Energy Articles available online:

A New Electricity Market Import and Export Regulation

Procedure Set for the Collection of Data Required by EMRA

The Electricity Network

Other regulations

 
 
 

PHARMA, HEALTHCARE & BIOTECHNOLOGY

Pharmaceutical Safety

The Regulation on Pharmaceutical Safety (published in the Official Gazette dated April 15, 2014 and numbered 28973) was published by the Turkish Pharmaceutical and Medical Device Institution (the “Regulation”). The Regulation introduces contractual pharmacovigilance service institutions to carry out all pharmacovigilance activities which were carried out only by license holders before. Accordingly, such contractual institutions, which shall be subject to the approval and audit of Turkish Pharmaceutical and Medical Device Institution, can be outsourced by license holders to carry out activities in relation to safety of pharmaceutical products.

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More Pharma, Healthcare & Biotechnology Articles available online:

Sale, Advertisement and Promotion of Medical Devices

 
 
 

INSURANCE

Insurance Agents

A new Insurance Agents Regulation (published in the Official Gazette dated April 22, 2014 and numbered 28980) was published by Undersecretariat of Treasury, and the previous regulation (published in the Official Gazette dated April 14, 2008 and numbered 26847) was abolished at the same time. Among other changes; agents are now obliged to execute agreements with insurance companies. Furthermore, legal entity agents shall employ at least one technical staff in addition to a director. Directors of legal entity agents shall comply with minimum standards of education and business experience which have been stipulated under Annex 1 of the Regulation.

More Insurance Articles available online:

Insurance Agreements

 
 
 

REAL ESTATE & CONSTRUCTION

Permits Regarding Utilization of Forestry Lands for Exceptional Sectorial Facilities

The Regulation Regarding Implementation of Articles 17/3 and 18 of the Forestry Law (published in the Official Gazette dated April 18, 2014 and numbered 28976) was issued in order to regulate the construction permits for defense, transportation, energy communication, water, water disposal, petroleum, natural gas, infrastructure, solid waste disposal and regular storage facilities, water blockings, ponds, street animal protection places and any relevant facilities together with factories processing forestry products in relation thereto.

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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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