Turkey's fund crisis locks in nearly 1 million investors as regulators saw warning signs

September 21, 2026 at 03:35 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Nearly 1 million investors had their money locked in Turkey's fund system after a bubble driven by extraordinary price movements burst. Regulators including the SPK, BDDK and Borsa Istanbul had detected unusual price movements as early as late 2025 but failed to act decisively. The crisis followed a 40,000% rise in a brokerage stock after its IPO.

Key Facts

Nearly 1 million investors had their money locked in Turkey's fund system when the fund mechanism collapsed.
The SPK detected unusual price movements in low free-float stocks via free investment funds and money market funds in the last quarter of 2025.
Bloomberg examined an extraordinary rise of approximately 40,000% in a brokerage firm's stock after its IPO.
Finance Minister Mehmet Şimşek warned in November 2025 about manipulation through some funds and called for regulation and heavier penalties.
BDDK Chairman Şahap Kavcıoğlu imposed restrictions on savings finance companies just two months before the fund crisis.

Regulatory Warnings

Finance Minister Mehmet Şimşek stated in November 2025 that the ministry knew manipulation was being carried out through some funds and warned about regulation and heavier penalties in this area. According to the SPK's statement dated September 18, 2026, unusual price movements inconsistent with economic realities were detected in the last quarter of 2025 in investment funds, especially through free investment funds and money market funds, in stocks with low free float. The issue was brought to the Financial Stability Committee chaired by Şimşek on December 2, 2025, and the SPK established a working group on December 3. BDDK Chairman Şahap Kavcıoğlu imposed some restrictions on savings finance companies, through which billions of lira flowed, just two months before the fund crisis. MASAK President Hasan Kaymak only took notice of the extraordinary money movements in the inflated funds after it was too late.

Borsa Istanbul Oversight

Borsa Istanbul Chairman Prof. Dr. Erişah Arıcan, who controls all funds on the exchange, merely watched the process while the bubble inflated and failed to see increases reaching 40,000%. Arıcan and Borsa Istanbul General Manager Korkmaz Ergun did not make a convincing public statement about unusual stock movements and fund positions. Arıcan also serves as Deputy Chairman of the Turkey Wealth Fund (TVF), and Ergun has headed Borsa Istanbul since 2021.

SPK Leadership Change

The SPK's post-crisis statement said that after the change in the Board Presidency in May 2026, work on the draft Fund Guide continued without interruption. In May, SPK Vice President Mahmut Sütçü became president, replacing İbrahim Ömer Gönül, son of former Defense Minister Vecdi Gönül. Sütçü emphasized the leadership change, though he himself was SPK Vice President at the time.