• It is the spirit and not the form of law that keeps justice alive.
    Earl Warren


Before the publication of these communiqués (“new Communiqués”) amending Communiqué on Principles Regarding Investment Services, Activities and Ancillary Services No. III-37.1 and Communiqué on Principles of Establishment and Operation of the Investment Firms No. III-39.1, the development and investment banks were not permitted to act as intermediaries in share transactions on Borsa Istanbul. However, with the new Communiqués that were published in the Official Gazette dated 14.01.2016 and no. 29593, the development and investment banks are now permitted to act as intermediaries in trading of shares listed on Borsa Istanbul, provided that the said development and investment bank acquires the brokerage firm (which may not be listed) and applies for the cancellation of all operational licenses of the brokerage firm.

In addition to the above, the following material principles have been introduced with the new Communiqués:

•    Before opening an account for the leveraged transactions, the clients are required to transact in a trial account based on real prices. The client must use the trial account for a period of minimum 6 business days and enter into at least 50 transactions.
•    The principles and rules governing all advertisements, publications and announcements to be made by the brokerage firms regarding leveraged transactions are now laid down in detail in the new Communiqués.

•    In order to prevent the conflict of interest, it is prohibited to provide individual portfolio management and investment consultancy services to the leveraged transaction clients.

•    A written declaration must be obtained from general clients regarding the potential risks and losses of the leveraged transactions.

•    It is mandatory for the investment firms to publish the list of over-the-counter derivatives and the underlying assets in their websites and submit such information to the Turkish Capital Markets Association.

•    The brokerage firms are required to obtain collateral from clients for the over-the-counter derivatives transactions. The risk of the transactions should be taken into consideration for the determination of the amount of initial collateral.
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