İFC Action Plan

 

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Finance Office of Presidency of the Republic of Türkiye is working on the construction of the IFC financial ecosystem to respond effective and changing global demands. In this regard, the Finance Office is responsible for the execution of the administrative processes of the IFC and the coordination of the activities carried out by the financial institutions within the scope of the IFC. The “İstanbul Financial Center Department” was established within the Finance Office of Presidency of the Republic of Türkiye in order to carry out strategic studies in areas such as the design of the IFC legal infrastructure.

1. IFC Action Plan/ Law Study

The activities of the IFC Project have started in accordance with the task assigned to Finance Office of Presidency of the Republic of Türkiye, with the Presidential Decree No. 1. An integrated consultation process has been initiated to determine the needs and roadmap for the IFC Project to progress rapidly.

Within the scope of the IFC Project, information and opinions were exchanged with all stakeholders, and as a result of these meetings, the “IFC Action Plan Workshop” was held to demonstrate a holistic common mind including all stakeholders. On 11-12 June 2019, in the Presidential Dolmabahçe Labor Office Conference Hall, IFC Workshop was held, with 180 participants, 90 of which are private sector and 90 are public sector. First day of the workshop was devoted to the views of private sector representatives and second day to the views of public institutions.

Within the framework of the holistic approach that emerged in the workshop, eigth components were identified: Physical Infrastructure and Clustering, Financial Sector Qualified Human Resources, Financial Technologies Development, Enriching Financial Instruments and Services, Regulating Subsidies and Incentives, Legal Infrastructure and Regulatory Framework, Improving the structure of participation finance, Marketing and PR. The Draft IFC Action Plan consists of 39 main action titles.

Within the framework of the steps to be taken for the Draft IFC Action Plan items and the proposed legislative amendments, consultations are held with many institutions. As a result of the meetings held with the relevant institutions, a holistic “İstanbul Financial Center Law” requirement has emerged in order to meet the needs of the IFC Project. Studies on the İstanbul Financial Center Law continue in the light of the negotiations with the institutions.

Components

Physical Infrastructure and Clustering

Within the scope of the IFC Project, designing a program that will accelerate the progress of the ongoing constructions in Ümraniye, which is designated as the first cluster region, has been put on the agenda. There are three main action items in this component, which aims to complete the constructions in the cluster region and redefine the ownership model of the area and to establish the financial ecosystem by focusing on the physical infrastructure works.

“Highlights in the “Physical Infrastructure and Clustering Component”:

  • Allocating the necessary structure for faster progress of the Ümraniye construction process
  • Conducting physical infrastructure works in IFC cluster regions
  • Environmental-urban arrangements and supporting socio-cultural habitat

Financial Sector Qualified Human Resources

In this component that are moved with awareness of Türkiye's greatest wealth of young and dynamic human resources, it’s aimed to improve the quality of the local workforce, while to intensify the international qualified workforce in İstanbul within the scope of IFC Project. There are four main action items in this component, which finds solutions to human resource problems in the financial sector, accelerates bureaucracy processes in international work permit, focuses on consultancy services within the sector, and focuses on new areas and issues that the sector needs in training and certification processes.

Highlights in the “Financial Sector Qualified Human Resources Component”:

  • Aligning the qualified international workforce and finance sector employee profile with global demands
  • Providing consultancy services for human resources
  • Improving the professional competence of financial sector employees
  • Improving the human resources potential of the financial sector and improving the training capacity of the employees

Financial Technologies Development

One of the focal points determined for the positive separation of the IFC from other international financial centers is “Financial Technologies” (FinTech). There are three main action items in this component that was created in order to contribute to the FinTech sector, which is in the process of development in Türkiye, and to bring the high advantages of new generation technologies to the country.

Highlights in the “Financial Technologies Development Component”:

  • Establishment of “İstanbul Finance and Technology Headquarters”
  • Creating the FinTech working group and providing the legal basis of FinTech
  • Providing the necessary support and incentives for FinTech

Enhancing Financial Environment

Financial development through the improvement of financial institutions, financial markets and financial instruments contributes to financialization and plays a positive role in increasing savings. There are three main action items in this component that was created for the realization of new products and projects as well as improving the existing legal processes and implementation processes in the finance sector.

Highlights in the “Enhancing Financial Environment”:

  • Varying the Financial Products
  • Improving the financial product range
  • Improving financial infrastructure

Subsidies and Incentive Mechanism Design

Incentives that will help increase Türkiye's financial competitiveness and the tax arrangements have a significant role in the process of IFC becoming one of the world’s leading financial centers. There are four main action items in this component, which includes a plan of legislation for various taxes in line with the selected demands according to the needs of the financial sector.

Highlights in the “Subsidies and Incentive Mechanism Design Component”:

  • Applying incentives to improve the capital market
  • Encouraging the expansion of the institutional investor base
  • Making arrangements compatible with world practices in encouraging collective investment instruments and taxing these instruments
  • Designing exclusive in the cluster region of the IFC

Legal Infrastructure and Regulatory Framework

One of the conditions to stand out as a global financial center is to have a reliable and strong legal structure. It is important to establish the necessary structures for a fair resolution of the possible conflicts. There are four main action items in this component, which orders to have a legal infrastructure and regulatory framework that adopts universal legal principles of the IFC, follows the current legal developments in the world and promotes the development and healthy growth of the financial system.

Highlights in the “Legal Infrastructure and Regulatory Framework Component”

  • Enabling financial dispute resolution processes
  • Digitalization of financial law processes
  • Expanding the regulatory framework to dematerialize and activate financial data
  • Defining the non-banking financial sector in a wider legal infrastructure

Improving the Participation Finance Structure

The potential of the increase in the share of participation finance within the overall financial sector in Türkiye. There are four main action items in this component, which aims to make İstanbul an international center in the field of participation finance with its potential share and its advantages of geopolitical location.

Highlights in the “Improving the Participation Finance Structure Component”:

  • Increasing awareness on participation finance and ameliorate perception
  • Making institutional and legal arrangements
  • Including participation finance on a large scale in financial architecture
  • Enhancing human capital of participation finance

Marketing and PR

Istanbul, master the current finance is an advantageous and innovative city to do business in international financial markets and it has a cosmopolitan structure and a high standard of living as well. There are three main action items in this component, which aims to promote IFC globally in the most correct manner.

Highlights in the “Marketing and PR Component”:

  • Creating and implementing the IFC promotion strategy
  • Preparing reports for external stakeholders
  • Performing international promotion, advertisement and information activities

2. İstanbul Finance and Technology Headquarters

Finance Office of Presidency of the Republic of Türkiye, with the task assigned to the Office in the "2020 Presidential Annual Program" published with the decision of the President with the decision numbered 1733, aims to establish "İstanbul Finance and Technology Base" in order to contribute to the development of the FinTech sector in Türkiye and to bring the high advantages brought by new generation financial technologies to the country. Project Details →