‘Investor Protection and Asset Safety’ Hong Kong - WFC 2017 Gokce ILIRIS Head of International Relations & Corporate Communications 17 November 2017
MKK in Brief – Turkish Market Practices Turkish capital market is fully dematerialized MKK operates a fully segregated beneficial-owner based securities settlement system (SSS) and depository system It is possible for foreign investor CSDs to open omnibus accounts at MKK (without any limitation on how to maintain records in their system) Capital Markets Board (CMB) can ask investor CSDs to share beneficial owner information for the investors present in the omnibus accounts in case of an investigation or suspicion of a fraudulent activity. In that case, investor CSDs shall be required to disclose relevant information on beneficial owners. To ensure maximum level of investor protection & asset safety, MKK develops value-added services to enhance Asset Segregation – Asset Protection & Flexibility Public Disclosure; Shareholder Communication & Information on the Issuers Transperancy; Market Data 01
MKK Account Structure MKK PARTICIPANTS ACCOUNTS SUB-ACCOUNTS 02 PARTICIPANT «A» (LOCAL CUSTODIAN/INTERMEDIARY) Participant Portfolio Acc. Investor Acc.(1) Free Pledge Attachment PARTICIPANT «B» ( INVESTOR CSD ) (I)CSD Portfolio Acc. (I)CSD Investor Acc. (Beneficial Owner) «Omnibus» Account PARTICIPANTS ACCOUNTS SUB-ACCOUNTS System access available by electronic cards. More than 40 account types. Main accounts; Investor Portfolio Fund Settlement Pool Accounts Investor types Local\Foreigner Real Person\Legal Entity\Fund\Investment trust\Other Fully accountable \ Limited taxpayer 02
Turkish - MKK Practices -2 Communication bridge between companies and shareholders Platform to enhance corporate governance & investor relations to develop transparency and information access Continuous information exchange between shareholders and companies through internet, e-mail and mobile applications An electronic system through which electronically signed notifications required by the regulations are publicly disclosed Designed to allow easy access to correct, timely, fair and reliable information about all listed companies The platform enables its members to send their notifications and announcements, It also facilitates publication of these notifications and announcements. Real time notification of investors via SMS & e-mail Activates whenever a transaction takes place Aims to eliminate possible errors and fraudulent attempts Distribution of capital markets data by econometric models Single source, secure, consistent & reliable Easy access for all to non-confidential data Domestic/Foreign share of securities holdings Actual shares outstanding Period statistics 03
How It Works in Turkey? 04 END INVESTOR COMPANY Custodians Corporate Actions Announcements Entitlement Date/Record Date ISO15022 COMPANY Foreign CSD Financial Statements ISO20022 Financial Reporting ICSD Company Information Prospectus Articles of Association E-mail & SMS Notification 04
For further assistance please contact with INTERNATIONALRELATIONS@mkk.com.tr or visit www.mkk.com.tr company/merkezi-kayit-kurulusu-a.s.-mkk-