NEWSLETTER-2017

211 CAPITAL MARKETS LAW Communiqué on Principles Regarding Investment Services, Activities and Ancillary Services numbered III-37.1 2 (“Communiqué on Investment Services”) grants an opportunity to foreign investment institutions to provide investment services to residents in Turkey. Pursuant to Article 9 of the Communiqué on Investment Services, “All kinds of investment services and activities obtained by persons residing in Turkey, including investment firms, on their own initiative, from financial institutions residing abroad, accounts opened at such institutions, and cash and other assets transferred to such accounts, and transactions conducted in these accounts are beyond of the scope of this Communiqué, provided that no promotion, advertisement and marketing activities are conducted by persons intending to reside in Turkey.” Accordingly, foreign investment institutions may provide capital markets services, either directly to investors, or through investment institutions that are authorized in Turkey. The explained exception is conditioned upon to not conduct promotions, advertisements and mar- keting services. Considering Article 39 of the CML it can be evalu- ated that the legislator has adopted the understanding that the foreign investment institutions which are not conducting promotional, or any similar activities, will not provide investment services, in Turkey, as a regular occupation. Article 9 of the Communiqué on Investment Services foresaw certain examples of activities deemed as promotional and marketing activities, “For the purposes of the application of the first paragraph, any cases, such as opening a workplace in Turkey, creation of a web site in Turkish, and intending to conduct advertisement and marketing activities directly and/or through persons or institutions residing in Turkey with respect to investment services, provided by institutions established abroad, shall be deemed to be intended for persons resid- ing in Turkey, and relevant provisions of the legislation shall apply. Additional criteria on a determination as to whether the activities are intended for persons residing in Turkey shall be determined by the 2 Please refer to the following link for Turkish version of Communiqué on Princi- ples Regarding Investment Services, Activities and Ancillary Services numbered III-37.1, http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=9.5.18576&Mev zuatIliski=0&sourceXmlSearch=yat%C4%B1r%C4%B1m%20hizmetleri.