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ARTICLE · 13 OCTOBER 2017

How Does Custody System Operate In Turkish Capital Market?

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This Article seeks to set forth the operation of custody system in Turkey by putting the lens on categories of custody service, licensing requirements, segregation of accounts principle, books and records and local securities depository institutions in accordance with applicable legislation in Turkey.

TurkeyFinance and Banking
Nazlı Çapan
Nazlı Çapan
Ayşe Ece Bircan
Ayşe Ece Bircan
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This Article seeks to set forth the operation of custody system in Turkey by putting the lens on categories of custody service, licensing requirements, segregation of accounts principle, books and  records and local securities depository institutions in accordance with applicable legislation in Turkey.

  1. Categorisation of Custody Services and Licensing

Local financial institutions incorporated in Turkey and licensed by the Capital Markets Board of Turkey (the "CMB") may offer custody service to corporate or non-corporate investors for custody of their financial assets and to individuals and collective investment schemes for custody of their portfolio assets.

In essence, Capital Markets Law numbered 6362 (the "Law") categorizes custody services under 3 (three) seperate titles due to the scope of service to be provided to investors;

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