Client updates /  Investment Advice

ISA staff confirmed that activities of foreign research firms publishing “sponsored analyses” to investors abroad are not subject to the Israeli Advice Law. This determination provides certainty for foreign entities covering Israeli companies, provided they carry out and distribute the activity exclusively outside Israel.

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.

In order to contend with the meager supply of investment advice or portfolio management services via technological interfaces, the Israel Securities Authority has published a proposed amendment to the directive focusing on two main services: trading signal services and social trading. Both of these services rely on digital media.