TUR CMB issued Responsible Management Principles for funds of asset managers.
Document dated Feb. 20, 2024, was added on Mar. 21, 2024 due to editorial backfill.
Background
Collective investment organisations in the world have become effective and powerful corporate governance actors due to their role as institutional shareholders.
These have assumed an important role in ensuring stability in capital markets.
Especially with global economic crisis in 2008, effects of institutional investors on the corporate governance practices of the companies they invested in came to the fore.
Subsequently, regulations were made in many countries under the name stewardship codes, surveillance principles for companies in which corporate shareholders invest.
These regulations basically encourage collective investment organizations and portfolio management companies to determine policies to ensure the long-term sustainability of invested companies, taking into account environmental, social and governance factors.
Under Articles 1 and 54 of Capital Markets Law No. 6362, made CMB Board decision Feb. 16, 2024 and numbered 11/155, adopted Responsible Management Principles.
Principles
Principles were determined for responsible investment, management, supervision of securities investment fund assets, and aim to create long-term value for stakeholders.
Also aim at providing sustainable benefits for the economy, environment, and society.
The set of principles includes monitoring activities for investee companies, interaction activities with investee companies, cooperation activities with all relevant stakeholders.
Use of voting rights of assets in managed portfolios and responsible management policy of environmental, social and governance factors; also 5 principles on inclusion.
Effectiveness
Not mandatory for portfolio management companies to create policies regarding the responsible management principles, but, from Dec. 31, 2024, the principles policy or the decision not to create a policy and its justification must be disclosed to the public.
How the principles set out in the responsible management principles policy are implemented by portfolio management companies must be disclosed to the public within 60 days following each accounting period, through the company annual reports.
