Revamp: The Capital Markets Board Introduces Investment Regulations for Money Market Funds

The Capital Markets Board (SPK) published two principle decisions. According to the decision included in the SPK weekly bulletin, it was decided to amend certain articles of the Investment Fund Guide, which is recognized as the i-SPK.52.4 (dated 20.06.2014, numbered 19/614) principle decision, specifically in the sections titled "Definitions" (1.2.), (1.6.), (2.), (3.), (4.9.), (6.5.), (8.4.), and (13.) following the decision of the Board's Decision Organ numbered 60/1696 dated 21.11.2024.

The "Responsible Management Principles" prepared based on the provisions of Articles 1, 54, and 128/2 of the Capital Markets Law No. 6362, and containing the implementation principles of these guidelines for the securities investment funds established by portfolio management companies, has been accepted as the i-SPK.54.1 (dated 21.11.2024, numbered 60/1696) principle decision by the Board.

According to the change made by SPK in the Investment Fund Guide, except for funds with the term 'participation' in their title, a minimum of 10% of the portfolio of money market funds will be directed towards investments in government domestic borrowing securities. Compliance with this limitation by money market funds will be mandatory by 28 February 2025. Changes to the fund information documents regarding this limitation, as well as changes to comparison indicators/thresholds if deemed necessary, will be enacted without requiring the Board's approval, in accordance with the procedures outlined in the Fund Communiqué regarding announcements and registration processes.

The total fund size of the money market is approximately 1.1 trillion TL. With the related application, there will be a demand of 110 billion TL for government domestic borrowing securities.