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U.S.-based investment bank JPMorgan Chase & Co. is moving to surrender the operating license of its Turkish brokerage subsidiary, J.P. Morgan Menkul Degerler A.S., while stressing that the decision does not signal a withdrawal from Türkiye.
The company is seeking approval from Türkiye’s Capital Markets Board (SPK) to cancel the subsidiary’s authorization, bringing its legal status in line with its long-standing lack of operations, according to a statement released Wednesday.
The brokerage has not carried out any capital markets activities or provided investment or ancillary services to customers since July 2015, the company explained, adding that the decision followed discussions with the SPK in previous years.
JPMorgan emphasized that the decision had no connection to the market turmoil in September, which erupted after several investment funds failed to meet investor redemption requests. The turmoil prompted the SPK to order the liquidation of 131 mutual funds managed by seven portfolio management companies to contain the fallout.
The turmoil affected more than 455,000 investors, with the funds estimated to hold ₺936.3 billion ($19.1 billion) in total assets at the time. The liquidation process is still underway, although authorities have completed the liquidation of 66 funds.
The company emphasized that ending the subsidiary’s brokerage status would not affect other businesses operated by the JPMorgan Chase group in Türkiye.
"The application to be submitted to the SPK and the termination of the Company's status as a brokerage firm do not mean that other activities carried out by the JPMorgan Chase group in Türkiye will end, be restricted or that the group will withdraw from Türkiye," the statement read.
J.P. Morgan Menkul Degerler A.S. and the Istanbul branch of JPMorgan Chase Bank N.A., headquartered in Columbus, Ohio, are legally separate entities, the company noted. The licensing process applies only to the brokerage subsidiary.
JPMorgan Chase Bank N.A. operates in Türkiye through its Istanbul branch, providing corporate banking, investment banking, treasury and investor services to businesses, financial institutions and other institutional clients. The bank has maintained a presence in Türkiye since 1890, according to its website.
Its Istanbul branch also conducts government bond transactions on Borsa Istanbul’s debt securities market and over-the-counter markets, trading mainly in fixed-coupon government bonds, as well as inflation-linked, TLREF-linked and floating-rate securities. It also deals in bonds issued by multilateral institutions, including the World Bank and the European Investment Bank.
The bank had total assets of €349 million ($392.4 million) at the end of 2025, according to data from the Banks Association of Türkiye.
In an earlier announcement, the SPK outlined the steps J.P. Morgan Menkul Degerler must take if the regulator approves its application to cancel its brokerage license. The company would then have to cease its capital markets activities, either by winding up or changing its business purpose, and would lose its status as a brokerage firm.
The regulator also gave customers who claim outstanding rights or receivables related to investment services, capital markets activities or ancillary services three months from the announcement date to submit supporting documents to both the company and the SPK.
Customers who have filed lawsuits must provide a court-issued document confirming that proceedings have begun, while those who have initiated enforcement proceedings must submit the relevant records.
Customers who dispute the balances recorded in their brokerage accounts must instead provide a written statement specifying the amounts they contest. The SPK urged customers to meet the deadline to protect their rights.
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