Compliance Report ISSA Recommendations 2000

ISSA - International Securtities Services Association

Compliance to the ISSA Recommendations 2000

Market: Turkey

Status: October 9, 2001

Recommendation 1
Recommendation 2
Recommendation 3
Recommendation 4

Recommendation 5
Recommendation 6
Recommendation 7
Recommendation 8

Market selection

Recommendation 7

Investor compliance with the laws and regulations in the home countries of their investments should be part of their regulators' due diligence process. They, in turn, should be treated equitably in the home country of their investments especially in respect to their rights to shareholder benefits and concessionary arrangements under double tax agreements.

1. Do domestic regulators monitor the procedures in place at their locally based cross-border custodians to assure compliance with the laws and regulations of the home countries of their investments? There is no specific regulation for such. However, CMB continuously monitors all activities of locally based capital markets institutions including their international activities, to assure for the compliance for the regulations of the CMB and for the prudent manner in the home countries of their investments.

2. What are the areas (e.g. benefits, investor compensation) where foreign investors are not treated in the same way as local investors? No. Foreign investors are treated in the same way as local investors in terms of their rights, benefits arising from their ownership.
There is only one extra procedure for the foreign investors, that is related to their voting rights at the Board of Directors of the issuers, requiring the registration with the "Foreign Capital Directorate General" of the Undersecretariat of the Treasury.

3. Can sales proceeds and income be repatriated without any restrictions? Yes. There are no restrictions on the repatriation of sales proceeds and dividends.

4. Are double tax agreements simple to apply, and do foreign investors receive promptly their full entitlement to dividends and interest payments? Turkey has established double taxation agreements with several countries. The clauses vary according to the country of the agreement. Therefore, getting legal assistance is advised to make sure on the advantages and applicability of these agreements.

1.	Do domestic regulators monitor the procedures in place at their locally based cross-border custodians to assure compliance with the laws and regulations of the home countries of their investments?	There is no specific regulation for such. However, CMB continuously monitors all activities of locally based capital markets institutions including their international activities, to assure for the compliance for the regulations of the CMB and for the prudent manner in the home countries of their investments.
2.	What are the areas (e.g. benefits, investor compensation) where foreign investors are not treated in the same way as local investors?	No. Foreign investors are treated in the same way as local investors in terms of their rights, benefits arising from their ownership. There is only one extra procedure for the foreign investors, that is related to their voting rights at the Board of Directors of the issuers, requiring the registration with the "Foreign Capital Directorate General" of the Undersecretariat of the Treasury.
3.	Can sales proceeds and income be repatriated without any restrictions?	Yes. There are no restrictions on the repatriation of sales proceeds and dividends.
4.	Are double tax agreements simple to apply, and do foreign investors receive promptly their full entitlement to dividends and interest payments?	Turkey has established double taxation agreements with several countries. The clauses vary according to the country of the agreement. Therefore, getting legal assistance is advised to make sure on the advantages and applicability of these agreements.