Classification Of Customers (Capital Markets)

Classification Of Customers (Capital Markets)

Classification of Customers in the Context of Capital Markets Law

Customer Classification (SPK): Pursuant to the Capital Markets Law No. 6362 and the Investment Institutions Regulation issued by the Capital Markets Board, customers are classified based on their ability to make investment decisions and assess and take action regarding the risks associated with such investments. Within this scope, customers are classified as follows:

1) Professional Customer: A customer who has the experience, knowledge, and expertise to make their own investment decisions and assess the risks they assume. For a customer to be considered a professional customer, they must be one of the following entities or possess the listed qualifications:

1. a) Brokerage firms, banks, portfolio management companies, collective investment institutions, pension investment funds, insurance companies, mortgage finance institutions, asset management companies, and equivalent entities established abroad.
2. b) Pension and assistance funds, funds established in accordance with the transitional 20th article of the Social Insurance Law No. 506 dated 17/7/1964.
3. c) Public institutions and organizations, the Central Bank of the Republic of Turkey, the World Bank, and international organizations such as the International Monetary Fund.

ç) Other institutions deemed similar to these institutions by the Board based on their characteristics.

1. d) Institutions that meet at least two of the following criteria: total assets of at least 50,000,000 Turkish Liras, annual net income of at least 90,000,000 Turkish Liras, and equity capital of at least 000,000 Turkish Liras.[1]

2) General Customer: Customers who do not fall under the definition of professional customer are considered “general customers.”[2]

3) Customers Accepted as Professional Customers Upon Request: General customers who meet the following criteria may benefit from the services and activities offered by the investment institution as professional customers upon written request and provided that they prove that they meet at least two of the following conditions. For a customer to be considered a professional customer, they must meet at least two of the following conditions:

1. a) They must have carried out at least 500,000 Turkish Lira worth of transactions at least 10 times in each 3-month period over the last year in the markets where the transaction is requested
2. b) The total value of their financial assets, including cash deposits and capital market instruments, must exceed 1,000,000 Turkish Lira
3. c) They must have held a senior management position in the financial sector for at least 2 years or have worked as specialized personnel in the capital markets sector for at least 5 years or hold an Advanced Capital Markets Activities License or a Derivatives Instruments License[3]

4) Qualified Investor: Domestic and foreign investment funds, pension funds, investment partnerships, brokerage houses, banks, insurance companies, portfolio management companies, mortgage finance institutions, pension and assistance funds, foundations, funds established under the relevant article of the Social Insurance Law, public benefit associations, and other investors deemed similar to these institutions by the Board based on their qualifications[4], as well as real and legal persons who, as of the issuance date of the capital market instruments, hold at least 1 million Turkish Lira, foreign currency, or capital market instruments[5]”, are defined as qualified investors in the law.

Year: 2025

Application: Classification Of Customers (Capital Markets)

Lawyers: Mehmet Said Sarıbaş & Bilal Akbaba

E-mail: info@saribasakbaba.av.tr

Website: saribasakbaba.av.tr

[1] Yatırım Kuruluşlarının Kuruluş ve Faaliyet Esasları Hakkında Tebliğ (III-39.1) m.31

[2] Yatırım Kuruluşlarının Kuruluş ve Faaliyet Esasları Hakkında Tebliğ (III-39.1) m.31/4

[3] Yatırım Kuruluşlarının Kuruluş ve Faaliyet Esasları Hakkında Tebliğ (III-39.1) m.32

[4] Sermaye Piyasası Araçlarının Satışı Tebliği (II-5.2) m.4/m

[5] Yatırım Kuruluşlarının Kuruluş ve Faaliyet Esasları Hakkında Tebliğ (III-39.1) m.32/3