Asset management companies

Asset management companies are financial institutions that buy and resolve nonperforming assets of banks, Savings Deposit Insurance Fund and other financial institutions; give consulting and brokerage services to these institutions on resolution of their non-performing assets and can operate according to capital markets law. As a joint stock company, asset management companies are subject to Turkish Commercial Code?s related provisions as well as Banking Code Article 143 and Regulation on Organization and Operation Principles of Asset Management Companies.Company?s organization procedure and amendments to company?s articles of incorporation are subject to permission of Ministry of Customs and Commerce. Permission of Banking Regulation and Supervision Agency is also required for company?s operations. Moreover, the partnership relations between Savings Deposit Insurance Fund and private asset managemet companies are regulated. According to this, the companies that Savings Deposit Insurance Fund has at least twenty percent of its stocks, can enjoy the rights given to Savings Deposit Insurance Fund under Articles 132/8 and 138/5 of Banking Code on the receivables taken from Savings Deposit Insurance Fund. In order to prevent the results violating rule of law, these receivables shall not be interpreted as having the same legal status with Savings Deposit Insurance Fund?s receivables.Non-performing assets are not regulated as the sole operating field of asset management companies. On the other hand, reglations and financial institutions? own criteria for credit reserves can be a reference for identification of non-performing assets. Asset management company?s operations that are listed in a limited way by the Regulation, are aqusition, collection, restructuring and disposition of assets of banks, Savings Deposit Insurance Fund and other financial institutions, consulting and brokerage on sales and restructuring. The types of legal transactions done by asset management companies are varying in a broad sense and can be classified under both the agreements regulated and unregulated by codes. However, regardless of the legal charecter of the transaction, the possible legal problems can be derived from the obligation of giving information and protection of banking secrets.