DEFINITIONForegin investment funds (FIFs) are the investment funds established abroad. Sale of FIFs in Türkiye is subject to Capital Market Regulations. 
PRECONDITIONS FOR SALEFIFs whose units will be sold in Türkiye should comply with the following conditions:
  • Units of foreign investment fund must be traded in Turkish Lira or in any one of foreign currencies the daily buying and selling exchange rates of which are published by the Turkish Central Bank; and
  • A prior permission or consent of the relevant authority of home country of the issuer must have been taken for sales of the subject fund units; and 15
  • A minimum period of three years must have lapsed from the date of initiation of sales of fund units abroad, and current value of fund units to be sold must be minimum EUR 2,000,000 or its equivalent sum in any other currency as of the date of application; and
  • Relevant laws of the issuer’s home country must not have imposed any restriction on sales of the subject fund units in Türkiye and on execution of payments and conduct of transactions with regard to the resulting financial rights in Türkiye; and
  • Net asset value of the fund must be minimum EUR 10,000,000 or its equivalent sum in any other currency; and
  • At least 80% of net asset value of the fund must be invested in money and capital market instruments and transactions, as well as assets, the Turkish public debt instruments, of issuers resident in Türkiye; and
  • If portfolio management service is purchased from an institution other than issuer, that institution must hold a portfolio management authorization certificate in its home country; and
  • More than 10% of net asset value of the fund must not have been invested in money and capital market instruments of the same entity or corporation, providing that a limit of maximum 35% is applicable for money and capital market instruments issued by public entities and institutions; and
  • The fund must not alone hold more than 10% of capital shares or all voting rights in any corporation; and
  • Regulations of the relevant country pertaining to indebtedness of the fund and lending of its assets must be in harmony with the legislation applicable on investment funds founded in Türkiye; and
  • At least once a year, financial statements of the fund prepared and issued within the frame of international accounting standards must be audited by an independent audit firm; and
  • A commitment note issued by the fund’s authorized organ and addressed to the Board, certifying that all kinds of information and documents which may be requested by the Board, also including the public disclosure information and documents listed in Article 31 hereof, will be provided and that the fund will be auditable by persons or entities to be designated by the Board, in the sole cost of fund and/or representative, must be given.
  • Fund must have a representative in Türkiye, and a written agreement at least containing the items enumerated in Communiqué must be signed between the fund and its representative. Upon expiration or termination of this agreement, all obligations and duties arising out of the agreement and this Communiqué will survive and remain in force until a new successor agreement is signed and is approved by the Board.
  • Fund representative is liable:
a)  to ensure that unit holders of the fund in Türkiye have equal rights with unit holders resident abroad, and that all payments relating to such fund units are made in Türkiye; and
b)  to make sure that all information required to be disclosed to public are disclosed in a timely manner, and all notices and reports required to be submitted to the Board are delivered on time, and all documents, prospectuses and investor information notes to be attached to applications and all other information disclosed to public are true and accurate; and
c)  for trading of foreign investment fund units in compliance with principles determined by the fund; and
ç)  if and to the extent the fund fails to make payment for any reason whatsoever upon return of fund units to the foreign investment fund, to ensure that the price of fund units is paid fully in cash and the relevant fund units are repurchased from investors within 17 maximum two business days following the end of the period of time granted for repurchase of fund units; and
d)  to procure that records relating to fund units sold in Türkiye, and identity of buyers thereof, and number of fund units traded as above, and dates of trading, are kept accurately, and records and information to be transmitted to the issuer are transferred accurately, and records kept in Türkiye and records kept abroad are consistent with each other.
CUSTODYFund assets are required to be kept in custody in at least one fund custodian as defined in Communiqué. 
DISCLOSUREIt is obligatory for FIFs to prepare the fund prospectus and  an investor information form.
Information contained in the prospectus must be consistent, understandable and complete according to the prospectus standards determined by the Board. The fund prospectus must be prepared in Turkish and in sufficient details for clear reflection of all information relating to the fund and the sales of foreign investment fund units as specified in the related laws or other information relating thereto as requested by the Board, and must be signed by representative and officials of the fund, and the information and statements must, if needed, be relied upon documentary evidences.
Investor information form is prepared and published in accordance with the principles set forth in regulations of the Board pertaining to investment funds. The fund representative is responsible for accuracy and currency of contents of this form.
In addition of the prospectus and investor information form originals and Turkish summaries of financial reports, independent audit report and other periodical reports issued and prepared in accordance with national laws and international accounting standards applicable on funds are required to be published in PDP for FIFs. The fund representative is responsible for such reporting.
PRIVATE PLACEMENTForeign investment fund units may be sold through private placement only to qualified investors. In applications to be filed to the Board for sales of these fund units, an issue certificate is prepared and issued instead of prospectus.