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Türkiye has appointed Muhsin Atci, head of the Tax Inspection Board, as chairman of the Capital Markets Board (SPK), putting him in charge of the regulator as a widening fund scandal continues to grip the country's financial sector.
The turmoil erupted in mid-September after several investment funds failed to meet redemption requests, leaving investors unable to withdraw their money as expected.
The appointment, announced in a presidential decision published in the Official Gazette on Sunday, also names Ersin Basar Ekmekci as deputy chairman and Yasemin Girici as a board member.
Atci replaces Mahmut Sutcu, who resigned on Oct. 19, citing health problems, after taking over as SPK chairperson on May 9.
He took over as SPK chairperson on May 9, 2026, after serving as the regulator's deputy chairperson since November 2024.
His departure came amid mounting questions about whether the regulator had done enough to prevent the fund turmoil.
The problems in the investment funds emerged in mid-September after funds built up substantial positions in relatively illiquid stocks, where limited trading volumes made it difficult to sell holdings quickly without pushing prices lower.
As investors sought their money back, liquidity pressures intensified, contributing to sharp losses across the stock market.
The SPK ordered the liquidation of 131 investment funds managed by seven portfolio management companies, with Ziraat Bank overseeing 125 funds and Is Bank handling the remaining six.
The affected funds held an estimated ₺936.3 billion ($19.1 billion) in combined assets and had 455,758 individual investors at the time of the decision, while the process was set to take up to six months.
The State Supervisory Council, a presidential audit body, launched an examination of financial regulators and their oversight of the market, while prosecutors expanded their investigation into suspected manipulation.
The inquiry has also drawn in Ibrahim Omer Gonul, who chaired the SPK from April 2022 until April 2026. Gonul was summoned to provide a statement as a suspect in September, extending the investigation to a former head of the institution responsible for supervising the funds.
Authorities have distributed ₺68 billion ($1.4 billion) to 63,759 investors as the ordinary liquidation of 93 funds managed by four companies nears completion.
Following the Turkish parliament's passage of a bill establishing a legal framework for funds that could not be liquidated under the ordinary procedure, interim payments under the extraordinary process began on Oct. 30.
The first round covers seven funds managed by the remaining three companies, with ₺29.3 billion ($590 million) being paid to 235,705 investors.
As of Oct. 30, payments under both procedures total ₺97.3 billion ($2 billion), covering 100 funds and 299,464 investors. However, the figures do not mean all 131 funds initially ordered into liquidation have completed the process.
Interim payments are capped at ₺1 million per investor for each eligible fund, subject to the investor's net investment amount and available cash.
Money market funds receive priority, and the payments will be deducted from investors' final liquidation proceeds.
The investigation into suspected market manipulation and irregular transactions continues, with 120 of the 217 suspects remanded in custody as of last week.
Authorities are examining trading in shares of 31 publicly listed companies following criminal complaints filed by the SPK.
Authorities have also frozen assets linked to the investigation as part of efforts to secure assets suspected of being connected to irregular transactions and illicit gains.
Most recently, the investigation has reached Borsa Istanbul itself, with the stock exchange's general manager, Korkmaz Enes Ergun, detained on Saturday on suspicion of bribery and membership in a criminal organization.
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