If a general client has the qualifications described below, proves that it meets at least two of the criteria described below, and demands by giving a letter, it may use as a professional client the services and transactions provided and performed by investment companies. In order to be considered a professional client, it should meet at least two of the criteria described below:
–Having performed minimum 10 transactions each of which valued minimum TL 500,000 in the same market as its demand in each quarter of the last year.
–Owning financial assets including cash savings accounts and capital market instruments at a total value of TL 1,000,000.
–Having worked as a top management executive position in the financial sector for minimum two years or as a specialist in a capital market for minimum five years or holding an advance level capital market license or derivatives license.
Pursuant to the definition of the term ‘qualified investor’ in the regulations passed by the Capital Market Board, only the real or legal persons meeting the second criteria described above will be considered elective professional clients upon their demand.
All investment companies i.e. banks and stock brokers are obliged to classify all of their clients as either professional or general clients, to provide their clients with services and transactions falling in the scope of their respective classes, and to fulfill their obligations in accordance with the classes of their clients.
Each client is obliged to notify its investment company any event that will affect its present class; each investment company is obliged to perform the acts necessary to fulfill its obligations stipulated in the law after learning such event. Clients are responsible for the accuracy and for updating the information they gave in such notices. Investment companies are also obliged to ask their clients to give the documents proving their professional client status and to store those documents for the period stipulated in the applicable regulations of the Capital Market Board.