Insights

The Communiqué (III-42.1) on Remote Identification Methods to be Used by Intermediary Institutions and Portfolio Management Companies and Establishment of Contractual Relations in Electronic Environment (“Identification Methods Communiqué”) and the Communiqué (III-45.1.b) Amending the Communiqué (III-45.1) on Documentation and Record-Keeping System Regarding Investment Services and Activities and Ancillary Services (the “Amendment”) have been published in the Official Gazette dated 08.02.2022 and numbered 31744.

Identification Methods Communiqué regulates the procedures and principles regarding the remote identification methods to be implemented in the remote customer acquisition process by the intermediary institutions and portfolio companies. In addition, the principles for establishing a contractual relationship either over an informatics or electronic communication device as a substitute for the written form or with a distance agreement, were determined. Accordingly,

• In the remote identification process, before the video call, the application of the person is received electronically through the application of the intermediary institution or portfolio company where the remote identification process is operated, and the application is subjected to risk assessment.
• Biometric data, which is a sensitive data, can only be used for the purpose of remote identification of the person, and the explicit consent of the person is recorded electronically.
• Video call is carried out with end-to-end secure communication in a timely and uninterrupted manner. In case it is not possible to communicate due to reasons such as poor lighting conditions, poor image quality, or suspicions of fraud and fraud attempt arise, the call is terminated.
• The entire identification process is recorded and stored.
• Adequate security measures should be taken in remote identification. It is the responsibility of the intermediary institution or the portfolio management company to ensure that it is used in a way that minimizes the risk of false identification.
• After remote or face-to-face identification, to establish contractual relationship remotely, the customer's intention to enter into contractual relationship must be received in an electronic environment after identity verification.

Amendment introduces similar principles to the Identification Methods Communiqué. Accordingly,

• It has become obligatory either to give a copy of the contract concluded in the electronic environment to the customer or to send it to the e-mail address to be declared by the customer or to provide access and viewability of the contract in electronic environment by informing the customer.
• For investment services offered electronically by the intermediary institution, the authentication mechanism, which consists of at least two components, and the verification code usage are explained in detail. Failed authentication attempts, inactive sessions for a certain period of time, and multiple simultaneous logins for the same client are explained.
• It was stated that the account statement can also be requested electronically.

The Communiqué no. III-42.1 and the Communiqué no. III-45.1.b will enter into force one month after their publication.

You may find the full text of the Turkish version of the Communiqué no. III-42.1 here.

You may find the full text of the Turkish version of the Communiqué no. III-45.1.b here.