SPK Chair Mahmut Sütcü Resigns; 85 Detained in Fund Investigation

Capital Markets Board Chair Mahmut Sütcü resigned from his post citing health problems. The resignation came amid a crisis engulfing the SPK since September 17, when the board decided to liquidate 131 investment funds.

The funds under liquidation belong to TERA, PUSULA, HEDEF, ATLAS, A1, PARDUS and BULLS PORTFÖY companies. Iş Bankası and Ziraat Bankası are overseeing a six-month liquidation process.

In the Istanbul Chief Prosecutor's Office investigation, 85 people are in custody, including a former Central Bank deputy governor. On September 26, it was alleged that former Family Minister and AKP Deputy Chair Fatma Betül Sayan Kaya profited 21-fold through a fund, her husband profited eight-fold, and the couple withdrew a total of 2 billion 170 million lira at the beginning of the month. Kaya left the allegations unanswered and simply resigned from her position.

On September 29, the Chief Prosecutor's Office sent notices to all relevant institutions to freeze the assets of Kaya and her husband İlyas Kaya. On October 6, it was reported that the couple applied to return the fund profits and the Chief Prosecutor's Office sent letters to banks permitting the return.

The SPK had also issued warnings against portfolio management companies in 2022; however, at that time it was limited to administrative penalties rather than liquidation.