Glossary
You can see a short explanation of the terms shown with a dotted underline on the pages by hovering over or tapping them. All of the terms are collected here.
- Annulment action
- An action brought before the administrative court to set aside an administrative decision alleged to be unlawful. The general time limit is 60 days (İYUK art. 7).
- Bar registration number
- The registration number recorded for each lawyer at the bar association to which they belong. The registration of anyone practising as a lawyer can be verified through the roll search of the relevant bar association or of the Union of Turkish Bar Associations.
- Bill
- A text submitted to the Turkish Grand National Assembly (TBMM) but not yet enacted. It does not apply until it is adopted by the General Assembly and published in the Official Gazette; the text may change during this process.
- Confiscation
- The taking, by court order, of property and proceeds used in or obtained from an offence from their owner.
- Consumer transaction
- Any contract or legal transaction entered into between a natural or legal person acting for purposes that are not commercial or professional (the consumer) and a person acting for commercial or professional purposes. Actions arising from consumer transactions are heard by the consumer court.
- Contributory negligence
- Where the injured party has also contributed to the occurrence or the increase of the loss. In that case the court may reduce the compensation.
- Disguised transfer of profits
- Where a fund reduces its assets by entering into transactions with related parties on terms contrary to market conditions and transfers the gain to those parties. It is prohibited by SPKn art. 21.
- Distributor
- The bank or brokerage firm that sold you the fund units. Your account and transaction records are held at this institution, and payment is made to this account.
- e-YATIRIMCI
- MKK's free portal where you can view the fund units registered in your own name and your account movements (eyatirimci.mkk.com.tr).
- Encumbrance
- Restrictions on the units in an account, such as a pledge, attachment or interim injunction. In the liquidation, these restrictions are identified separately during reconciliation.
- Full remedy action
- An action brought before the administrative court by a person who has suffered loss because of an administrative decision or action, seeking payment of that loss.
- Fund unit
- The capital market instrument that represents your share in an investment fund. When a fund is liquidated, payment is made in proportion to the fund units you hold.
- Hedge fund (serbest fon)
- A type of fund that may be sold only to qualified investors and is less bound by the general investment limits. The great majority of the 131 funds in liquidation are hedge funds.
- Implied rejection
- Where the administration fails to respond to an application within the statutory period. In that case the application is deemed to have been rejected and the time limit for filing suit begins to run.
- Interim payment
- A payment in the nature of an advance, made before the liquidation is completed, to be deducted (set off) from the final amount you will receive later.
- Intervening party
- The person harmed by the offence who takes part in the criminal case alongside the prosecutor. For the offences in the Capital Markets Law, the law grants the status of intervening party to the Board (SPKn art. 115/2).
- Investment fund
- A pool of assets without legal personality, established by a portfolio management company with money collected from investors (SPKn art. 52/1). The fund's assets are separate from the assets of the company that manages it.
- Investor Compensation Center (YTM)
- The institution that, within the statutory limit, compensates investors when an investment firm is unable to deliver cash or securities belonging to them. It does not cover losses arising from market price movements (SPKn art. 84/2).
- Joint and several liability
- Where there is more than one liable party, the whole of the loss may be claimed from any one of them. The one who pays has recourse against the others in proportion to their shares.
- KAP
- Public Disclosure Platform (kap.org.tr). Where official announcements concerning funds are published.
- Limitation period
- The period within which a claim may be pursued through the courts. Once the period has expired, the claim is dismissed if the other party raises the limitation defence.
- Liquidation
- The winding up of a fund by selling its assets, converting them to cash and distributing the proceeds to unit holders in proportion to their units.
- Mediation
- Settlement negotiations between the parties conducted with a neutral mediator. In commercial actions for receivables and damages, applying to a mediator before filing suit is mandatory.
- MKK
- Central Securities Depository (Merkezi Kayıt Kuruluşu). The institution that keeps the records of who holds how much of each capital market instrument. In the liquidation, unit ownership is verified against MKK records.
- Money market fund
- A type of fund that invests in short-term, highly liquid instruments. The fund type alone does not guarantee the principal.
- Net investment amount
- The amount found by deducting the money you withdrew from the fund from the money you actually invested in it. It is calculated by MKK. The upper limit of the interim payment is determined on the basis of this amount.
- Portfolio custodian
- The institution that holds the fund's assets in a separate account and checks that transactions comply with the regulations. If it fails to fulfil its obligations, it is liable for the loss it causes to unit holders (SPKn art. 56/2).
- Portfolio management company (PYŞ)
- The company that establishes and manages the fund. By law it must manage the fund in a way that protects the rights of unit holders (SPKn art. 52/3). On this site it is also referred to as the "founder".
- Proper defendant
- Against whom an action must be brought. In compensation actions relating to the SPK's duties, the action is directed at the Board, not at its staff (SPKn art. 133/4).
- Qualified investor
- The investor status required to buy hedge fund units. The financial-asset threshold for status granted on request was raised from TRY 1 million to TRY 10 million on 18 December 2025.
- Reconciliation
- The mutual verification, between the bank conducting the liquidation and MKK, of who holds how many units and of any restrictions on the accounts. Payment is made only to accounts whose reconciliation has been completed.
- Seizure
- The temporary removal of an asset from a person's control during an investigation or prosecution, in order to use it as evidence or to make its later confiscation possible.
- Service fault
- The failure of a public service to operate at all, its late operation or its defective operation. It is the principal basis of the administration's liability to compensate (Constitution art. 125).
- Set-off
- The deduction of a payment made earlier from a payment to be made later. The interim payment is set off against the final payment.
- SPK
- Capital Markets Board (Sermaye Piyasası Kurulu). The regulator that took the liquidation decision and supervises the process. Under the law, it does not itself decide on compensation for losses.
- TEFAS
- Turkey Electronic Fund Trading Platform. The common platform on which fund units are bought and sold through different banks and brokerage firms; operated by Takasbank.
- TMSF
- Savings Deposit Insurance Fund. In the course of the crisis, the voluntary return accounts were opened in the name of TMSF; the Bill also assigns to TMSF the task of recovering amounts from those responsible.
- Tort
- Causing loss to another person through unlawful and culpable conduct. The person causing the loss is obliged to make it good (TBK art. 49).
- Value date
- The date that determines at which day's price a purchase or redemption order is executed and on which day it settles.
Have a question?
These articles are general information. You can send questions about your own situation through the contact section or by e-mail.
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