Societe Generale has ordered employees to cease commentary on Turkey pending a review of new legislation that threatens up to five years imprisonment for certain types of commentary on financial markets.
Bloomberg reports that Turkey’s Capital Markets Law enacted on December 31st stipulates punishment for 'those who provide untruthful, wrong or misleading information, start rumors, or provide news, commentary, or prepare reports with the intention of influencing prices, values of capital markets instruments or investor decisions'.
Bank of America Merrill Lynch and Commerzbank AG said they were also reviewing how the new law will affect their business in Turkey.
'I am quite surprised by the contents of the section on market commentary as the authorities have proven to be proactive in promoting an investor-friendly environment in the past', Benoit Anne, head of emerging markets strategy at Societe Generale in London, said by e-mail Friday. The bank won’t comment on Turkish markets until further notice, he said.
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