Investigation Launched into Former Turkish Markets Regulator
··2 min read
Turkish authorities have launched an investigation into former Capital Markets Board (SPK) Chief Ibrahim Omer Gonul, following a fund scandal that has impacted over 455,000 investors and involved funds with approximately $17 billion in assets. The probe, authorized by Finance Minister Mehmet Simsek, comes after prosecutors requested permission to investigate Gonul for alleged failures in his official duties.
The scandal, which began in mid-September, has led to a broader investigation into suspected market manipulation and has put pressure on President Recep Tayyip Erdogan’s ruling Justice and Development Party (AKP). Prosecutors cited “clear and sufficient indications” of Gonul’s alleged failures during his four-year tenure, which concluded in April 2026.
The SPK, which oversees Turkey’s capital markets, is responsible for investor protection and ensuring fair and transparent market operations. The crisis has resulted in the detention of 85 individuals, with an Istanbul court ordering 20 more suspects to be jailed pending trial.
The scandal erupted when several investment funds could not meet investor redemption requests during a market sell-off, causing a sharp decline in Istanbul’s main stock index. The SPK subsequently suspended trading in 131 investment funds on the TEFAS electronic platform and initiated their liquidation. The affected funds were managed by seven portfolio management companies.
The fallout has prompted Erdogan to promise accountability for those who benefited unfairly from the crisis. A senior governing party figure and former minister has already resigned amid allegations of profiting from the turmoil through investment activities.
CONTEXT: The investigation into Gonul and the broader scandal highlight significant issues within Turkey’s financial regulatory framework and market oversight. The crisis has not only affected a large number of individual investors but also raised questions about the integrity of the country’s financial markets and the effectiveness of regulatory bodies in protecting investors and maintaining market stability.
