NEWSLETTER-2017

213 CAPITAL MARKETS LAW Sanctions Pursuant to Article 99 of the CML, “ Notwithstanding any types of civil and penal liabilities, the Board is authorized to take all necessary measures to stop unauthorized capital market activities, inter alia, and to file a lawsuit within one year starting from the date when unauthor- ized capital market activities and transactions have been determined, and in any case, within five years starting from the date when they have occurred, to refund right holders their money or capital market instruments, and to annul the consequences caused by unauthorized capital market activities and transactions.” Accordingly, in the event of performance of investment services and activities as a regular occupation, business or a professional activ- ity through promotional activities by foreign investment institutions, the Capital Markets Authority is entitled to take any types of measure. Additionally, the new specific term introduced through Decree numbered 690 foresees blockage of access to websites that enable leveraged transactions abroad, through application of the Capital Mar- kets Authority to Information and the Communication Technologies Authority. Although the first paragraph of Article 99 entitles the Capi- tal Markets Authority to take any measures, and the third paragraph regulates the blockage of access to the websites in the event of unau- thorized activities are conducted on the internet, the fourth paragraph recapitulates such measure for leveraged transactions. Conclusion Activities of foreign investment institutions in Turkey are regu- lated under both the CML and the Communiqué on Investment Ser- vices. Accordingly, excluding leveraged transactions, foreign invest- ment institutions may conduct the explained capital markets activities without obtaining authorization.