ISRAELI REGULATORY COMPLIANCE FOR FINANCIAL INSTITUTIONS
Israeli law limits the ability of foreign financial institutions, trustees and portfolio managers that are not regulated by the Israel Securities Authority to manage investments for residents of Israel.
Complete the form on the right to request a copy of our Free Guide to Israel Regulatory Compliance.
Foreign trustees, banks and portfolio managers who service Israeli resident clients need to take action to ensure compliance with Israeli regulatory legislation. There are two possible approaches – avoiding the need for Israeli regulatory compliance or ensuring compliance. Your choice between these options will depend on the nature of your client and your relationship with them.
Avoiding the Need for Israeli Regulatory Compliance:
a) By terminating the client relationship.
b) By ensuring that they do not provide investment advice either directly or indirectly within Israel.
c) By obtaining a Sophisticated Client Declaration from the client. The definitions of what constitutes a “Sophisticated Client” or “Qualified Client” are currently set out in the Securities Law (1968) and Advisory Law (1995) but are currently undergoing review. Click here for current definition and more information about the review.
Ensuring Israeli Regulatory Compliance:
e) By registering as a Licensed Portfolio Manager in Israel, including taking qualifying examinations in Hebrew.
f) By outsourcing your Israeli regulatory compliance function to Philip Braude or another English-speaking Licensed Investment Marketer.
Philip Braude can assist you by providing the necessary Israeli Regulatory Compliance Services that will enable you to maintain existing business relationships with your Israeli resident clients and continue to service their assets under management in their home jurisdiction.Please contact us for details.