Client updates

Over the last few days, the Privacy Protection Authority has begun sending in-depth questionnaires to various business entities for the purpose of examining these entities’ compliance with the Privacy Protection Regulations (Data Security) that came into effect on May 8, 2018.

In June 2018, the Bank of Israel published a new policy for authorizing small and digital banks. The Banking Supervisor announced that new banks can have initial regulatory capital of NIS 50 million – a substantial reduction of the levels previously required.

California recently passed a sweeping consumer privacy law that significantly increases the protection provided to people whose personal information is being collected.

In July 2018, the Commissioner of the Capital Market, Insurance and Savings Authority published draft guidelines that will enable P2P lending platform operators to operate a system that offers loans from their own nostro accounts.

At the end of last week, the Israeli Knesset approved a historic reform to the electricity sector. The selling process of the first power plant, Alon Tavor, is expected to begin within a few months.

In July 2018, the Israeli Knesset approved a draft bill in a second and third reading that addresses the obligation of apartment owners seeking to sell a property as a result of a general outline plan to pay land betterment tax.

Coinbase, one of the leading cryptocurrency exchanges in the US, received approval from the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to list for trading digital currencies considered to be securities (security tokens). Coinbase has thus become the first US federally-regulated platform for trading security tokens.

The Israeli Prime Minister’s Office published a memorandum on the proposed Cyber Defense and National Cyber Directorate Law. This law is designed to regulate the National Cyber Directorate’s purpose, functions, and powers.

Several new consumer protection updates: the obligation to disclose post-sale delivery and service policies, the expansion of provisions regarding the scheduling of providing services at consumers’ homes, and relief in the obligation to mark apparel products.

Recently, after a considerable number of meetings and discussions were held between representatives of third-sector organizations and representatives of a number of authorities, led by the Prime Minister’s Office, the inter-ministerial committee tasked with easing the regulatory burden on Amutot and PBCs published a report of its conclusions.

Israel’s Supreme Court has handed down a precedent ruling whereby a legal dispute between a social network and its Israeli users will be adjudicated in the court in Israel, notwithstanding the fact that the social network’s terms of use contain a jurisdiction stipulation vesting sole jurisdiction to the court in California.

On June 2018, the Israeli government adopted decision no. 3859, entitled “The Reform in the Electricity Sector and Structural Change in the Israel Electric Corporation.” This decision constitutes a milestone in the long history of the IEC, which was incorporated in 1923.

Moments before the new supervisory regime over financial asset service providers came into effect on June 1, 2018, the Minister of Finance signed an order postponing the effective date until the earlier of the following: October 1, 2018, or the issue date of the Prohibition on Money Laundering Order that addresses financial asset service providers.

The Ministry of Justice recently published a new memorandum regarding an amendment to the Companies Law. This amendment seeks to authorize the Registrar of Companies to administratively strike off a company from the Companies Register.

Recently, a four month proxy fight over control of an Israeli incorporated NASDAQ traded company was settled, following a series of proceedings held before the Tel Aviv District Court. At a crucial juncture, the Tel Aviv Court was asked to issue a temporary injunction over a transaction initiated by the board, which included a highly dilutive (24.9%) issuance of shares.

Recently, the Knesset approved a private bill that expands the scope of the “Spam Law.” The amendment is aimed at preventing the phenomenon whereby messages not necessarily commercial in nature are being sent to the general public, mainly through a robo-call system. 

The Israeli Supreme Court recently ruled a judgment on the matter of high-tech companies Kontera Technologies Ltd. and Finisar Israel Ltd. The facts underlying this judgment are relevant to many technology and startup companies in Israel engaged in R&D services with their foreign parent companies, and which their revenue is being calculated using a Cost-Plus method.

This month, an Israeli district court deliberated a motion for an interlocutory order against Bank Hapoalim. The order would obligate the bank to accept the transfer into a customer’s account of money that constituted proceeds from a sale of digital coins transacted outside of Israel.

According to a ruling handed down recently by the Israeli Supreme Court, when a real estate asset is sold before the seller enters bankruptcy proceedings, and the seller has not paid the betterment tax, the local council is not obligated to grant the buyer approval for registering the property under his name. Thus, the buyer will be required to pay the betterment tax.

The Israeli Supreme Court has set a precedent by ruling that the Business Judgment Rule should also be applied to a company’s board of directors when it is deciding whether or not to file a derivative suit.