Amendment to the Decree on Government Assistance for Investments
The Decree on Government Assistance for Investments numbered 2012/3305 dated 15 June 2012 which was published in the Official Gazette numbered 28328 and dated 19 June 2012 (the Decree on Government Assistance for Investments), regulates the procedures and principles to be implemented by the Ministry of Economy of Turkey in order to support various investments by way of different incentive systems and supporting elements.
The Industrial Property Law numbered 6769 (the Law) has been published in the Official Gazette dated 10 January 2017. The Law abolishes Decree Law on Protecting Patent Rights numbered 551 (DL/551), Decree Law on Protecting Industrial Designs numbered 554 (DL/554), Decree Law on Protecting Geographical Marks numbered 555 and Decree Law on Protecting Trademarks numbered 556 (DL/556). Additionally, The Regulation on the Application of the Industrial Property Law (the Regulation) has been published in the Official Gazette dated 24 April 2017 and entered into force on the same day.
Amendment to the Electricity Market License Regulation
The Electricity Market License Regulation published in the Official Gazette dated 2 November 2013 and numbered 28809 (the License Regulation) has been amended with the amendment adopted by the Energy Market Regulatory Authority published in the Official Gazette numbered 29989 on 24 February 2017 (the Licence Regulation Amendment).
Turkish Wealth Fund Management Company (i.e. Türkiye Varlık Fonu Yönetimi A.Ş.) (TWFM) was recently established with the law numbered 6741 dated 19 August 2016 (the Law) in order to manage the Turkish Wealth Fund (i.e. Türkiye Varlık Fonu) (TWF), the Republic of Turkeys (Turkey) very first sovereign wealth fund.
In the Official Gazette dated 31 December 2016 and numbered 29935, three regulations as the secondary legislation of the Movable Pledge Law have been published and entered into force. This Newsletter is focusing on the notable details of such secondary legislation.
The Communique on Execution of Articles of Association before Trade Registries (Communique) has been published in the Official Gazette dated 6 December 2016 and numbered 29910 and entered into force as of 6 December 2016.
Law on Pledges over Movable Property in Commercial Transactions (New Law) numbered 6750 has been published in the Official Gazette dated 28 October 2016 and numbered 29871 abolishing the Commercial Enterprise Pledges Law no:1447 (Current Law). The New Law will enter into force on 1 January 2017.
Amendment regarding Postponement of Bankruptcy demands initiated before State of Emergency
The Decree Law on taking particular measures in the scope of state of emergency dated 15 August 2016 and numbered 673 (Decree Law 673) has been published in the Official Gazette dated 1 September 2016 and numbered 29818.
The Law Amending Certain Laws to Improve the Investment Climate (Law) has been published in the Official Gazette numbered 29796 and dated 9 August 2016 introducing some significant amendments to various pieces of legislation.
Amendments to the Laws on Natural Gas and Electricity
The Law Amending the Electricity Market Law and certain other laws (Amendment Law) has been published in the Official Gazette on 17 June 2016 introducing certain amendments to various Turkish energy market regulations, including notably the Natural Gas Market Law and the Electricity Market Law.
The Regulation on Accessibility of the Banking Services has been published on 18 June 2016 (Regulation) to be in force on 1 January 2017 aiming to provide most disabled-friendly banking which sought to assure equal service standards to disabled customers in banking services.
The Regulation on the Unlicensed Electricity Generation in the Electricity Market numbered 28783 and published in the Official Gazette dated 2 November 2013 regulating the terms of unlicensed electricity generation (the Regulation) has been amended with the amendment adopted by the Energy Market Regulatory Authority (the EMRA) and published in the Official Gazette on 23 March 2016 (the Amendment).
The Personal Data Protection Law No. 6698 (the Law) has finally entered into force. As most of the interested parties are well aware, the Turkish authorities have been working on the draft law on the protection of personal data for a very long time in order to align Turkeys domestic laws with European Union (EU) directives which Turkey indeed needs to procure compliance with as part of the acquis communautaire for its expected membership to the EU. In this respect, long lasting draft of the Law has been enacted and entered into force on 7 April 2016 and takes EU Directive numbered 95/46 as basis.
In recent years, the municipal needs such as infrastructure, health care and education services have increased in parallel with rapid urbanization which has caused the municipalities to find new resources through borrowing in order to resolve the delays and failures in municipal services. As to the legal framework, the principles and procedures in relation to the internal and external borrowing of the municipalities are regulated under the laws and the secondary legislation thereof, mainly including the Law No. 5393 Municipality Law (the Municipality Law), the Law No. 4749 Law on Public Finance and Debt Management (the Finance and Management Law) and the Regulation on Principles and Procedures Regarding External Financing within the Scope of Law No. 4749 (the External Financing Regulation) of the Undersecretariat of Treasury of Turkey (the Treasury).
In order to align Turkish banking legislation with Basel principles, the Banking Regulation and Supervision Agency of Turkey (BRSA) amended certain regulations and communiqués entering into force on March 31, 2016. Two of such regulations which have been published in the Official Gazette recently are summarized below:
The Electricity Market License Regulation numbered 28809 and published in the Official Gazette dated 2 November 2013 regulating the terms of pre-license and license and the rights and obligations of the pre-license and license holders (the 'License Regulation') has been amended with the amendment adopted by the Energy Market Regulatory Authority (the 'EMRA') and published in the Official Gazette on 23 December 2015 (the 'Amendment'). The Amendment has brought some significant changes to the License Regulation.
A draft amendment (the 'Draft Amendment') to the Debt Instruments Communiqué numbered II-31.1 and published in the Official Gazette dated 7 June 2013 and numbered 28670 (the Debt Instruments Communiqué) was published by the Capital Markets Board (the CMB) on 27 November 2015. Should the Draft Amendment is adopted by the CMB in its current content; the significant changes on the Debt Instruments Communiqué will be as follows:
Governance in any context reflects the value system of the society in which it operates. Corporate governance is a system of law and sound values based on principles of fairness, transparency, accountability and responsibility. By adopting principles of good corporate governance, especially in developing countries, companies can often reduce their vulnerability to financial crises, command higher valuations, improve their profitability, and gain better access to foreign capital than their poorly governed peers, as demonstrated by the World Bank.
İstanbul Trade Registry has made an announcement on 21 September 2015 regarding the list of documents and procedures requested to complete capital increase in joint stock companies (the Announcement). The Announcement is based upon the general circular of Ministry of Customs and Trade, which is applicable to all trade registries in Turkey.
The improvements in technology and the increased usage of electronic devices resulted in significant developments globally in the e-commerce market which enables customers easily to meet their needs through an online platform, without coming face to face with the service providers. Above mentioned developments brought a positive impact in the development of Turkish e-commerce life as well and an urgent need for the existence of a legislation regulating the e-commerce world came up.
On 27 May 2015, the Capital Markets Board of Turkey (CMB) issued the Communiqué on Securities Investment Companies (Communiqué). The Communiqué has introduced a new type of securities investment company, investment company with variable capital (ICVC) to Turkish capital markets.