“Regulation on the Establishment and Operation Principles of Savings Finance Companies” (“Regulation”) published in 07.04.2021 dated and 31447 numbered Official Gazette. The Regulation issued by the Banking Regulatory and Supervisory Agency (“BRSA”) in order to put the savings finance services offered by companies that provide interest-free financing services and the savings finance services offered by these companies in a legal framework for the participants to acquire various assets, especially housing and vehicles.
In the Regulation, the steps to be followed regarding the establishment of Savings Finance Companies (“Company“), obtaining an operating license and opening branches are included, and the merger, division and acquisition transactions of the companies are subject to the permission of the BRSA.
The termination of activities and voluntary liquidation of companies are also subject to the permission of the BRSA. It has been obliged to submit the liquidation plan to the BRSA that the companies to be liquidated can fulfill their obligations to their customers.
According to the Regulation, companies are obliged to monitor the risks they are exposed to, to ensure control, to establish and operate adequate and effective risk management, internal control and internal audit system that will serve under the board of directors in accordance with the scope and structure of savings financing activities and in accordance with changing conditions. It has been regulated that the independent audits of the companies will be carried out by the independent audit institutions authorized by the Public Oversight, Accounting and Auditing Standards Authority to conduct independent audits in organizations of public interest.
Companies shall prepare an annual report including their status, management and organizational structures, human resources, activities, financial status, management’s evaluations and expectations for the future, financial statements, summary board report and independent audit report, and has been obliged to send it to the BRSA and publish on its websites at the latest in April of the current year.
Regarding the savings financing activity, companies; It is obliged to prepare a document regulating the general operating principles in order to determine the scope and operation of the said activities and the general framework of the contracts and to continue its activities according to this document. The document in question must be sent to the BRSA before it starts to be implemented.
If it is determined that a company cannot fulfill its obligations regarding its customers, BRSA may require an amendment to the general operating principles document or the application of another document deemed appropriate.
In terms of Savings Financing Agreements; It has been regulated that these contracts can only be subject to savings and financing for the purpose of acquiring housing, roofed workplaces or vehicles. Companies are obliged to effectively inform customers of the savings financing system about the functioning of the savings financing system, the provisions included in the savings financing contracts, and the right of withdrawal and termination. Companies are obliged to establish a system that will answer questions arising from the services provided and to inform their customers about this service. It has been regulated that companies cannot make any incentive practice for their existing customers from their savings fund pool resources in order to gain new customers within the scope of savings financing activities.