Turkish President Recep Tayyip Erdoğan has vowed to uphold economic stability and protect investors amid an ongoing investigation into suspected irregularities in the country’s capital markets. The government has formed a fully authorized board, led by the vice president, to oversee the liquidation of affected funds, with the State Supervisory Council also involved in the process.
The Capital Markets Board has intervened by ordering several investment funds managed by seven portfolio management companies to cease trading and has initiated the liquidation of some funds to safeguard investor interests. Concurrently, judicial actions have been taken, resulting in the arrest of five suspects as part of investigations into capital market transactions, focusing on allegations such as fraud, money laundering, and breaches of capital markets laws.
Erdoğan emphasized the government’s commitment to holding accountable those responsible for any misconduct while ensuring the broader financial system of Türkiye remains unaffected. He noted that the issues identified are confined to a specific segment of the fund market, and institutions are actively implementing measures to secure financial stability.