The Communiqué No:III-58.1.c amending the Communiqué on Asset and Mortgage Backed Securities No: III-58.1 (the “Communiqué) issued by the Capital Markets Board (the “Board”) entered into force on 16 October 2021 through its publication in the Official Gazette.
With the recent amendments, asset management companies are allowed to be the founder, originator or service provider in the issuance of asset backed securities within the scope of the Communiqué subject to certain conditions.
The Communiqué also ruled that in case asset management companies are originators, the asset and mortgage backed securities can be sold only abroad. It is also stipulated that different principles may be applied to the issuances to be made abroad upon the approval by the Board of the request of the issuer.
With the recent amendments, the approval of BRSA shall also be obtained in case the founder is an asset management company.
In parallel with the recent developments in the banking legislation, with the inclusion of non-performing loans within the assets that can form the portfolios of asset backed securities in the case of asset backed securities issuance where the asset management companies are originators, the fund portfolio may be formed by the transfer of transferred receivables portfolio as a whole and over fair value. The portfolio file regarding the transferred assets shall at least include the following: the bank, from which the loan is transferred, securities and other rights attached to such loans, if any, the collection ratio and the period provided by the bank at the time of the transfer to the asset management company, information regarding fair value, principles regarding profit sharing, if any, and any rights and assets acquired following the transfer for collection purposes.
Lastly, current provisions of the Communiqué i.e retention obligation, management of the fund, public disclosure and etc. shall also be applicable to the asset management companies.