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Following the entry into force of the new Capital Markets Law, the enactment process of the secondary legislation is continuing. In this regard, the Capital Markets Board recently published draft communiqués on the issuance of debt securities, shares and real estate certificates.

The new Capital Markets Law recently entered into force. The law aims to align the regulations and market practice in Turkey with those of the European Union and strengthen investor protection and market liquidity. Amendments to the Commercial Code, which acts as the secondary basis of legislation for all capital markets regulations, also played a key role in the new law's codification.

The Capital Markets Board recently announced the highlights of its latest revisions to the Communique on Principles Regarding Registration of Real Estate Certificates. According to the announcement, the board aims to encourage investment in real estate certificates and create an effective source of financing for project developers. The revisions should pave the way for the trading of active real estate certificates on the stock exchange.

A new system for custody and settlement of government debt securities provides for the holdings of bank or brokerage house clients to be held at the Central Registry Agency on a client-name basis, segregated from the intermediary institution's proprietary portfolios. This provides greater comfort to investors upon a bank or brokerage house's insolvency.

The Capital Markets Board recently released a draft of the revised Capital Markets Law for review by the public, professionals and practitioners. Pursuant to its preamble, a number of reasons have triggered the board's preparation of a brand-new text, a process which took two years. Having canvassed the opinions of professionals and practitioners, the board seems eager to finalise the draft law shortly.

The Banking Regulation and Supervision Agency recently amended the Regulation Regarding Banks' Procurement of Support Services. The regulation sets out the principles and conditions for providing support services, as well as requirements for support service providers and service agreements signed between such providers and banks.

Once the new Code of Obligations enters into force, Turkish banks will become reluctant to accept suretyships (the most common type of personal guarantee under Turkish law). Turkish banking practice has been always to obtain the suretyship of all shareholders for loans granted to companies. The new code aims to eliminate the current tendency to provide suretyship against loan debts of bank clients

When the New Code of Obligations enters into force, Turkish banks will have to put remarkable effort into reviewing their standardised terms of contract. The rules on standardised terms of contract in the new code are mostly adopted from several EU regulations and directives regarding standardised and unfair contract terms. The new code brings a three-stage supervision process to the standardised terms of contract, which will also protect corporate clients.