1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).
1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.
1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.
Being the exclusive fund manager of Türkiye Wealth Fund (hereinafter referred as ‘TWF’), Türkiye Wealth Fund Management Company (hereinafter referred as ‘TWF ManCo’), a joint-stock company subject to private law, was established with the Law No. 6741 published in the Official Gazette on 26 August 2016.The Decree of the Council of Ministers dated 17 October 2016 (hereinafter referred as the ‘Decree’) regarding the process and principles of the structure and operations of TWF ManCo (Turkish name: Türkiye Varlık Fonu Yönetimi Anonim Şirketi) was published in the Official Gazette on 9 November 2016. The Law No. 6741 and the Decree are publicly available information under the Official Gazette of the Republic of Türkiye and TWF’s website.
Putting aside the mainly formal and conceptual amendments directed to the harmonisation to constitutional changes related to adoption of presidential government system, some material amendments on “Exemptions and Exceptions” section of the Law No. 6741 were made with the law changing the Law No. 6741 adopted on 26 May 2022, published on 28 May 2022.
The current version of the Law No. 6741 can be reached at TWF’s website.
Following the Law No. 6741 and the Decree, TWF ManCo’s Articles of Association and TWF’s by-laws were also published in the Türkiye Trade Registry Gazette on 28 December 2016 and 30 January 2017 respectively. Some sections of the Articles of Association of TWF ManCo and by-laws of TWF were amended on 31 March 2021 and these amendments were published in the Trade Registry Gazette dated 5 April 2021.
TWF is managed and represented by TWF ManCo, being said, according to the Article 5 of the Law No. 6741, assets and rights transferred to TWF shall be registered under TWF’s name. With the latest amendments which were published in the Official Gazette numbered 31849 and dated 28 May 2022, the wording in Article 8 of the Law No. 6741 has been aligned with the general structure of the Law No. 6741 and therefore the ambiguity related to whether TWF ManCo or TWF shall be the founder has been removed in the direction that TWF shall be the funding shareholder in the companies and sub-funds to be established.
In accordance with the Law No. 6741, TWF may establish strategic partnerships. With the latest amendments published on 28 May 2022, it has been outlined for such partnerships that the companies and sub-funds to be established by TWF and/or TWF ManCo will benefit same exemptions and exceptions granted for such companies and sub-funds on the condition that TWF remains the controlling shareholder.
Pursuant to Article 14, paragraph 1 of the Articles of Association of TWF ManCo, Board of Directors should convene at least 6 times in a year.