IFM Proposal Accepted

Istanbul Financial Centre Bill Approved

The bill concerning the Istanbul Financial Centre (IFC) has been approved in the Turkish Grand National Assembly plenary session.

According to the approved provisions, the objectives include strengthening Turkey's financial competitiveness on the international stage, contributing to the development and deepening of products and services in financial markets, reinforcing integration into international finance and capital markets, and establishing the Istanbul Financial Centre as one of the world's leading financial centres. Regulations concerning the IFC's scope, governance and operations, as well as incentives, discounts, exemptions and waivers related to activities conducted there, are also being laid out. In the definition relating to financial activities, reference is made to relevant legislation; securities, derivatives, payment systems, electronic money and similar activities, services and transactions falling under banking, capital markets, insurance, financial leasing, factoring and similar markets may be conducted as financial activities in the IFC.

Participant certificates to be issued by the Office of Finance of the Presidency

Powers vested in unit owner associations, block representative boards and collective building representative boards under the Condominium Law will be exercised by the management company for 20 years with respect to real property located in the IFC. According to the proposal, a one-stop shop will be established for proceedings concerning participants' activities. The one-stop shop, which will monitor business and transactions conducted in the IFC from a single point and coordinate among public institutions and organisations located in the one-stop shop, will be managed by the Office of Finance of the Presidency, subject to the provisions of applicable legislation. Financial services provided by organisations operating financial activities with a participant certificate to persons resident abroad will be assessed as financial service exports, provided the service is ultimately benefited from abroad. Participants may freely choose applicable law in any transaction and contract they conduct under private law with each other within the scope of activities they carry out in the IFC, provided such transactions and contracts do not contravene the legislation to which their activities are subject.