Turkish authorities are considering measures to significantly tighten access to hedge funds for retail investors following market disruption last month, according to a report by Bloomberg. The proposals are aimed at strengthening protection for smaller investors from riskier trades. Officials are discussing raising the minimum requirements to qualify as an eligible investor, potentially lifting the threshold to TRY10m ($234,000) in financial assets – around ten times the current level. The changes remain under review and have not yet been finalised. The debate follows liquidity pressure at a Turkish portfolio management firm in November after rapid investor withdrawals, which sparked concerns around market stability, potential manipulation, and whether regulatory penalties should be strengthened. Hedge funds operating in Turkey currently manage around $117bn in assets, having roughly doubled this year, according to data from the Turkey Electronic Fund Trading Platform. Earlier this month, a committee led by Treasury and Finance Minister Mehmet Simsek met to assess broader financial stability risks, including the growing influence of hedge funds and money market funds within domestic capital markets.
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