The liquidation of an investment fund has significant legal consequences for the suspension of participation-unit transactions, realisation of portfolio assets and calculation of payments to investors. Liquidation does not extinguish the investor’s rights, but it does not guarantee repayment of the principal or the last announced unit price.
In Türkiye, investment funds are primarily governed by Capital Markets Law No. 6362 and Communiqué III-52.1. The CMB decision of 17 September 2026 concerning 130 funds is a current application of this legal framework, but the article’s main focus is the general legal position of investors.
Legal nature of an investment fund
An investment fund is a pool of assets formed with money or other assets collected from investors in exchange for participation units and managed on their account under a defined strategy. The investor owns participation units representing the fund’s total value rather than each portfolio asset directly.
When may a fund be liquidated?
A fund may terminate when its specified duration expires, when a voluntary liquidation request is approved, when continuation becomes impracticable or when the CMB orders liquidation to protect investors. The legal reason for liquidation affects the applicable procedure and potential liability.
CMB powers and the 2026 decision
Article 96 of the Capital Markets Law authorises the CMB to take measures when unlawful activities or transactions of capital-market institutions are identified. Bulletin No. 2026/60 suspended TEFAS transactions for funds founded by seven portfolio companies and ordered the liquidation of 130 named funds by a method to be determined by the CMB.
An administrative measure does not by itself establish criminal or civil liability. Each investor’s position depends on the relevant fund, transaction history, disclosures and actual loss.
Separation of fund assets
Article 53 separates fund assets from the assets of the founder and portfolio custodian. Fund assets are generally protected against the founder’s creditors, attachment, interim measures and inclusion in bankruptcy estates. This protection does not guarantee market value or principal.
Liquidation procedure and investor payment
The general framework requires identification of assets, liabilities and outstanding units, valuation or realisation of the portfolio, calculation of the net liquidation balance and distribution according to investors’ participation-unit ratios. Later CMB and KAP announcements may establish a special procedure for the 2026 decision.
The purchase price and last announced unit price are not automatic payment guarantees. Liquidity, realised sale values, impairments, liabilities and uncollectible receivables may change the final amount.
Duties of the manager and custodian
The portfolio management company must manage the fund in accordance with the law, fund rules, prospectus and investor information documents while protecting participation-unit holders. The custodian performs separate safekeeping, record-control and monitoring duties within its statutory remit.
Compensation claims
Liquidation alone does not automatically create a damages claim. The investor must identify a breach, damage, causal connection and the relevant liability rule. Article 32 establishes a specific regime for false, misleading or incomplete public disclosure documents and includes a six-month limitation period from the occurrence of loss.
Applications and evidence
A complaint to the CMB may support regulatory review but does not itself award compensation. Depending on the parties and legal basis, written applications to the relevant institution, dispute mechanisms before the Capital Markets Association of Türkiye and civil proceedings may be considered.
Investors should retain account statements, fund codes, purchase records, pending redemption orders, correspondence, prospectuses, investor information forms, risk notices and dated CMB, KAP, TEFAS and MKK announcements.
Conclusion
Fund liquidation is a capital-markets-law process involving segregation of assets, disclosure duties, portfolio management, custody and potential civil liability. Each fund and each investor’s transaction history must be examined separately.
This article provides general legal information only. It is not investment advice and does not replace advice based on the investor’s specific documents.
