Client updates /  Regulation

The ISA proposes to unify its recognition framework for foreign sophisticated investors and update the categories of eligible entities in the US, Europe, and the UK.
The proposal sets out requirements for offering documents, distributors, and investor verification on TASE-UP, with public comments due by November 12, 2026.

The Israel Securities Authority (ISA) staff recently responded to a preliminary query submitted on behalf of Hever Permanent Army Soldiers and Pensioners Organization Ltd and Hever Consumer Club Ltd. The query asked whether Hever’s prepaid card activities require a license under the Regulation of Payment and Payment Initiation Services Law, 2023. The ISA staff’s response clarifies the scope of the licensing obligation in the payment services sector, with implications extending beyond Hever’s case.

On September 10, 2026, the Israel Securities Authority (ISA) published a second draft of a directive governing the activities of licensed investment advisors and marketers when providing one-off services and services relating to restricted assets (formerly “alternative assets”), following public comments received on the first draft.

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,1995, The directive will supersede its 2011 directive and allow, for the first time, licensees to publicize past returns on portfolios. 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.

At the end of June 2026, in its Afikim Water ruling, Israel’s Supreme Court, for the first time, set out a clear test for calculating financial sanctions under the Consumer Protection Law. The CPFTA quickly adopted the ruling in a legal statement and temporary enforcement directive, changing how sanctions are calculated in practice. This unusual speed suggests the authority attributes considerable significance to the judgment.

Amendment 74 to the Consumer Protection Law introduces, for the first time, obligations to record sales-related conversations, retain those recordings, and provide them to consumers upon request. The amendment applies to certain transactions listed in the law where the transaction value exceeds ILS 750, or where the price is unknown at the time of the call.

The reform expands options for importers, manufacturers, and marketers in Israel by lowering barriers and creating an additional route for products that meet the statutory conditions. However, it does not grant broad relief, since eligibility remains subject to conditions, exceptions, and documentation requirements, and compliance with applicable Israeli law must still be reviewed. Businesses should therefore prepare in advance to identify qualifying products, required documents, and points of interaction with existing Israeli regulation.

For the first time, Israel’s Supreme Court has established a clear test for calculating financial sanctions under the Consumer Protection Law, depending on whether the conduct constitutes a single act or multiple separate acts.

Installing a “robot” for algorithmic trading and defining its parameters is not deemed a “technological service” but may constitute investment portfolio management, which requires a license. This is because the service provider retains material discretion (choice of platform, transaction volume, profit and loss targets, and risk management), even when the account and funds are in clients’ names.