Clients updates / Capital Markets Regulation

On August 5, 2026, the Israel Securities Authority (ISA) published a new draft directive issued under the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law of 1995, which will supersede its 2011 directive and allow licensees to publicize past returns on portfolios for the first time. Public comments will be accepted until September 4, 2026.

On July 26, 2026, the Israeli Capital Market, Insurance and Savings Authority published a policy document for implementing a reform in the guarantee market, along with a draft update to the licensing procedure for regulated financial services and supplementary draft circulars. Public comments were accepted until August 16, 2026 and discussions of the comments will be held on September 7, 2026.

The upcoming corporate credit database is expected to significantly affect Israel’s business credit market, expand credit data use, increase competition and access to credit, and require financial and other entities to prepare for reporting or relying on the database.

Following an extensive public consultation process, a final report on the use of AI in the financial sector was published last week. The report was prepared by a committee comprising representatives of the Ministry of Justice, the Ministry of Finance, the Competition Authority, the Israel Securities Authority, the Capital Market, Insurance and Savings Authority, and the Bank of Israel.

The Israel Securities Authority published a new staff position recently on the regulation of advertising in digital space (including on social networks), focusing on advertising relating to mutual funds. The staff position seeks to bridge the gap between the law and the dynamic reality in today’s digital age, and focuses on regulating ongoing online activities and activities with external parties.

On the eve of Rosh Hashanah, a joint task force from the Bank of Israel, the Ministry of Finance, and the Israel Securities Authority published an interim report for public comments, proposing a major reform in the way financial institutions (mainly banks, TASE members, and other players) are paid for securities services and investment advice.

Prediction markets have experienced rapid growth in recent years, thanks to the emergence of platforms attracting millions of users, such as Kalshi and Polymarket. These platforms have proven successful in predicting the outcomes of diverse events.

In July 2024, Israel’s Ministry of Economy imposed a 61%-146% temporary guarantee on aluminum imports from China to protect local industry from dumping. Recent guideline updates reinforce the focus on anti-dumping enforcement amid global trade tensions.

The Israel Securities Authority (ISA) recently published a report summarizing its findings regarding offerings of securities without a prospectus. The report is intended for entities planning to offer securities to the public and presents the ISA’s position regarding the criteria for various exemptions enabling entities to offer securities without a prospectus.

Last week, the Bank of Israel published a preliminary design of the central bank’s Digital Shekel system. In a detailed document, holding more than 100 pages, the Bank of Israel presents guiding principles and a work plan for further advancing this ambitious project.

This past weekend, a precedent-setting ruling was issued in the case of Bizi Finance Ltd., in which the court was required to determine whether a promissory note signed electronically could be enforced through the enforcement and collection offices.

Important updates relating to the Financial Information Service Law have been published in recent days.

Recently, the Israel Securities Authority (ISA) published draft rules regulating entities’ notice of exemption from the obligation to obtain a license to provide payment or payment initiation services.

The Israel Securities Authority recently published a legal staff position aimed at clarifying the applicability of the Payment Services and Payment Initiation Regulation Law to activities conducted within trust/escrow accounts. The position outlines interpretative tools to differentiate between payment services that require licensing, and activities exempt from such requirements. Normative Framework The Payment Services Regulation […]

The Israel Securities Authority recently published a staff legal position addressing the licensing requirements for businesses operating in the “Buy and Sell” or “Reseller” model in online marketplaces.

In October of this year, the Israel Securities Authority published a memorandum of law aimed at regulating broker-dealer activities in Israel. Public comments will be accepted until 21/11/24.

The Tel Aviv District Court handed down an important ruling recently regulating the activities of entities distributing alternative investments in Israel. In many instances, the distribution activities are accompanied by conversations and correspondence with potential investors, which constitute investment advice, and this is where matters become complicated.

The Digital Operational Resilience Act (DORA) is an EU regulatory framework, aimed at enhancing the financial sector’s ability to withstand and recover from ICT (information and communication technology) disruptions.

The Israel Securities Authority has published several additional revisions to the Israeli money market reform since the Knesset approved legislative amendments designed to promote competition in the money market, and since the draft directives and rules were published approximately two months ago. The money market reform relates to money market mutual funds, deposits and government bonds (short-term loans maturing in no more than one year).

This year, the Israeli Capital Market, Insurance and Savings Authority issued a series of new and revised circulars regarding proper management and corporate responsibility by financial service providers.