The term ‘professional client’ refers to a client having the experience, knowledge and specialty needed to make his investment decisions and to assess the risks he takes. Clients having any of the statuses or the qualifications described below:
a) Stock brokers, banks, portfolio management companies, collective investment organizations, retirement funds, insurance companies, mortgage financial institutions, asset management companies, and similar international entities.
b) Retirement fund organizations, other fund organizations established under Provisional Section 20 of the Social Security Law No. 506 dated 17/7/1964.
c) Public institutions or enterprises, Turkish Central Bank, such international institutions as World Bank and International Monetary Fund.
ç) Other entities considered similar to the ones described above by the Capital Market Board.
d) Entities meeting at least two of the following three criteria: having a total asset of TL 50,000,000; making an annual net income of TL 90,000,000; having an equity capital of TL 5,000,000.
e) Clients considered elective professional clients.
Clients not falling in the scope of professional clients are considered ‘general clients’.
Professional clients may invest in real estate investment funds or hedge funds; but general clients may not buy any of the said funds. The concept of ‘Appropriateness test’ was developed to measure each client’s perception of risk for the sale of such funds. A Appropriateness test must be taken by all general clients wanting to invest in the said products, but professional clients do not have to take it.