Legal Newsletter 1/2014  
 

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 This latest roundup provides insight on the latest amended and repealed laws and regulations affecting different sectors.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

BRSA Authorized to Determine Delivery Dates of Notifications

The Banking Regulation and Supervision Agency (“BRSA”) published the

  • Regulation on Liquidity Coverage Ratio of Banks,
  • Regulation Regarding the Amendment of Regulation on Calculation and Evaluation of Leverage Ratio of Banks,
  • Regulation Regarding the Amendment of Regulation on Liquidity Adequacy of Banks,
  • Regulation Regarding the Amendment of Regulation on Capital Adequacy of Banks and
  • Regulation Regarding the Amendment of Regulation on Calculation and Implementation of Foreign Currency Net General Position/Equity Standard Ratio by Banks on Consolidated and Non-Consolidated Basis

in the Official Gazette dated March 21, 2014 and numbered 28948, and introduced revisions in regards to the delivery dates applicable for certain notifications to be sent to BRSA. In this respect, BRSA shall determine the applicable dates for the delivery of the notifications in regards to the calculations of;

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Immovable properties located in an Organized Industrial Zone are allowed to be subject to financial leasing agreements.

The Prohibition on Utilizing the Information Collected by the Banks Association of Turkey has been abolished

Introduction of New Guarantees under the First Group Guarantees for Banks

Prolonged Duration for Certain Temporary Provisions Granting Advantages to Certain Loans and Receivables

Responsibility of Banks from Bad Checks has Increased

Mandatory Reserves Allowed to Receive Interest

Other Regulations

 
 
 

CAPITAL MARKETS

Public Disclosure of Special Events

The Capital Market Board (“CMB”) has issued the Communiqué No. II-15.1 on Special Events (“Communiqué”) (published in the Official Gazette dated January 23, 2014 and numbered 28891). The Communiqué sets forth the procedures and principles regarding the public disclosure of “insider information” and “ongoing information”. Some of the new regulations covered by the Communiqué are outlined below:

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More Capital Markets Articles available online:

Infrastructure REITs

Tender Offers

Dividend Distribution Policies

Obligation to Notify the Insider Trading and Manipulation Crimes

Measures regarding the Investigations of Insider Trading and Manipulation

Market Abuse Actions

Covered Bonds

Asset Backed and Mortgage Backed Securities

New Corporate Governance Principles

Shares Redeemed by the Company

Real Estate Investment Funds

Venture Capital Investment Funds

New Communiqué on Right to Squeeze-Out and Right to Sell

Regulation on Procedures and Principles regarding Compensation of the Investors and Gradual Liquidation

Other Regulations

 
 
 

CORPORATE

Commercial Titles

Communiqué on Commercial Titles (published in the Official Gazette dated February 14, 2014 and numbered28913) has been issued by the Ministry of Customs and Trade. The Communiqué regulates principles on determination of the commercial titles of companies. Accordingly, in principal, the commercial title of a company could be determined without any constraints; provided that words showing the subject of activity and type of the Company shall be in Turkish.

More Corporate Articles available online:

More Moderate Criteria for Auditing Requirement

 
 
 

COMPETITION

On January 2014, the draft law (“Draft Law”) amending the Law on Protection of Competition (“Competition Law”) was submitted to the review of the Grand National Assembly of Turkey.
The Competition Law, which was entered into force in 1994, was being criticized and a need for modernization was being raised by increasing number of academicians and practitioners. Such discussions intensively increased particularly following the reforms in the EU legislation, conducted through a number of regulations including Council Regulation (EC) 2003/1 and Council Regulation (EC) No 139/2004. An attempt was conducted in 2008 but the draft law amending the Competition Law could not successfully pass the Grand National Assembly of Turkey.

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DISPUTE RESOLUTION

Voluntary Product Recall

Amendments to the Ministry of Science, Industry and Technology Market Oversight and Supervision Regulation (“Regulation”) was published in the Official Gazette on February 25, 2014. Such amendments involve provisions in connection with the voluntary recall of products by their manufacturers. In this regard, a number of relevant material amendments are listed below.

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More Dispute Resolution Articles available online:

Increased Fines Shall Be Imposed To Companies For Certain Violations Of Consumer Protection Law Provisions

 
 
 

Employment

Workplace Danger Classes

The Communiqué on Danger Classes regarding Occupational Health and Safety (published in the Official Gazette dated December 26, 2012 and numbered 28509) has been amended on February 4, 2014. The subject of the amendment is with respect to the danger classes that the workplaces shall be covered by. For instance, workplaces which engage in wholesale trade of paints, varnishes and lacquers; wholesale trade of agro-chemical products and jewellery repair are classified in the dangerous class. On the other hand, wholesale trade of precious metal ores and concentrates are classified in the low dangerous class.

 
 
 

ENERGY

New Rules for Electricity Market Distribution

New Regulation on Electricity Market Distribution (published in the Official Gazette dated January 2, 2014 and numbered 28870) (the “Regulation”) has been issued by Energy Market Regulation Authority based on the Electricity Market Law which has recently entered into force. The purpose of the Regulation is the operation and planning of the distribution system securely and with low costs as well as the determination of procedures and principles on consumers connected or to be connected with the system.

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More Energy Articles available online:

Electricity Market Connection and System Utilization

Distribution Licenses Available for Organized Industrial Zones

A New Implementation Regulation on Turkish Petroleum Law

EPDK Decision Required for the Extension of Gas Distribution Areas

Other regulations

 
 
 

PHARMA, HEALTHCARE & BIOTECHNOLOGY

Health Services License Abolished

Health services license has been abolished as per the Article 7 of the Law Regarding the Amendment of Decree Law Concerning the Organization and Duties of the Ministry of Health and other Several Laws (published in the Official Gazette dated January 18, 2014 and numbered 28886) (Law No: 6514) (the “Law”) since the sub paragraph two of the Article 57 of the Statutory Decree Concerning the Organization and Duties of the Ministry of Health (published in the Official Gazette dated November 2, 2011 and numbered re. 28103) has been repealed by the Law.

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More Energy Articles available online:

Other Regulation

 
 
 

INSURANCE

Reinsurance Support for Turkish Catastrophe Insurance Pool

Pursuant to the new Ministry Decree on Reinsurance Support for Excess of Loss for Compulsory Earthquake Insurance Risks Undertaken by DASK (Turkish Catastrophe Insurance Pool) (published in the Official Gazette dated January 10, 2014 and numbered 28878), taking into account the reinsurance and protection program for the period between November 1, 2013 – October 31, 2014, for reinsurance part which exceeds 800 million Euros for excess of loss, 10% from each part corresponding to 235 million Euros shall be allocated to DASK as reinsurance support for the excess of loss.

More Insurance Articles available online:

Other regulation

 
 
 

REAL ESTATE & CONSTRUCTION

Major Amendments to Organized Industrial Zone Law

There have been several amendments to the Organized Industrial Zone Law (Law No: 4562) by the Law Regarding Amendment of Several Laws and Ministry Decrees (published in the Official Gazette dated February 27, 2014 and numbered 28926) (Law No: 6525) and the Law Regarding Amendment of Several Laws (published in the Official Gazette dated March 1, 2014 and numbered 28928) (Law No: 6527).

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More Real Estate & Construction Articles available online:

Technology Development Areas

Other regulation

 
 
 
 
     
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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