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JPMorgan Menkul Değerler AŞ said a process to cancel its capital markets operating licence is aimed only at aligning the legal status of a company that has been inactive for years, and does not affect the wider JPMorgan Chase group's business in Turkey.

The JPMorgan Chase Bank, N.A. Istanbul branch recently decided to expand its banking operations in Turkey and is carrying out the necessary work in coordination with the relevant legal authorities, the statement said.

Purpose of the licence cancellation

JPMorgan Menkul Değerler AŞ said it needed to issue a statement to clear up possible confusion and clarify the scope of the process after previously announcing that it had applied to the Capital Markets Board (SPK) to have its operating licence cancelled.

The company said it has conducted no capital markets activity since July 2015 and has provided no investment services or ancillary services to clients. "The process initiated to cancel the Company's operating licence is essentially aimed at aligning the Company's existing legal status with this factual situation, as the Company has long carried out no activity in practice, and the relevant decision was reached over the course of discussions with the SPK in previous years," the statement said. "In this framework, the decision in question has no connection with current developments in our country."

Brokerage and bank are separate entities

The company stressed that filing with the SPK and the end of its brokerage status "does not mean the termination or restriction of the JPMorgan Chase group's other activities in Turkey, or a withdrawal from Turkey."

JPMorgan Menkul Değerler AŞ and JPMorgan Chase Bank, N.A., headquartered in Columbus, Ohio, and its Istanbul, Turkey branch (JPMorgan Istanbul branch) are legally separate entities, the statement said, and the process to cancel the operating licence concerns only the company.

Expansion plans for the Istanbul branch

Banking operations run by the JPMorgan Istanbul branch are not affected by the process in any way and will continue as they are, without interruption, according to the statement. The Istanbul branch recently decided to expand its banking activities in Turkey, and the necessary work is under way in coordination with the relevant legal authorities.

The statement added that the earlier announcement was limited to the process of cancelling the brokerage operating licence of a company that has long had no activity, and did not concern any restriction of the JPMorgan Chase group's operations in Turkey or an exit from the country.

Key takeaways

• JPMorgan Menkul Değerler AŞ applied to the Capital Markets Board (SPK) to cancel its operating licence
• The company has conducted no capital markets activity since July 2015 and serves no clients
• The brokerage and the JPMorgan Istanbul branch are legally separate entities, the statement said
• The Istanbul branch plans to expand its banking operations in Turkey in coordination with legal authorities