Financial Information Service Law, 5782-2021
חוק שירות מידע פיננסי, תשפ"ב-2021
Published: 2021-11-18Consolidated Hebrew text as of 2026-07-27 · Last amended 2026-07-26✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Chapter V: Financial Sanction
Definition of the Basic Amount§
49.
In this Chapter, "the basic amount" – an amount as detailed in the Sixth Schedule.
Financial Sanction§
50.
(a)Where an information source listed in paragraphs (1) to (7) of the definition "information source", a credit bureau, a trader information bureau or a body prescribed pursuant to section 2(c) has engaged in the provision of a financial information service without holding an approval therefor or otherwise than in accordance with the conditions of the approval, in contravention of the provisions of section 2(b), a regulator as defined in section 13(a) may impose upon it a financial sanction in accordance with the provisions of this Chapter, at a rate of double the basic amount.
(b)Where a service provider has breached a provision among the provisions under this Law as detailed in Part 1 of the Seventh Schedule, the service provider regulator may impose upon it a financial sanction, in accordance with the provisions of this Chapter, in the basic amount, and if the service provider has breached a provision among the provisions under this Law as detailed in Part 2 of that Schedule – the service provider regulator may impose upon it a financial sanction, in accordance with the provisions of this Chapter, at a rate of double the basic amount.
(c)Where an information source has breached a provision among the provisions under this Law as detailed in Part 1 of the Eighth Schedule, the information source regulator may impose upon it a financial sanction, in accordance with the provisions of this Chapter, in the basic amount, and if the information source has breached a provision among the provisions under this Law as detailed in Part 2 of that Schedule – the information source regulator may impose upon it a financial sanction, in accordance with the provisions of this Chapter, at a rate of double the basic amount.
(d)Where a financial body, other than a stock exchange member, has breached a provision among the provisions of section 29(c) as detailed in the Ninth Schedule, the financial body regulator may impose upon it a financial sanction, in accordance with the provisions of this Chapter, at a rate of double the basic amount.
(e)Where a control permit holder has failed to report to the Authority on the occurrence of a circumstance among the circumstances listed in section 27(c)(1) to (6) of the Investment Advice Law, in relation to itself or in relation to a senior office holder therein, in contravention of the provisions of section 20(a)(2), the Authority may impose upon it a financial sanction, in accordance with the provisions of this Chapter, in the basic amount.
Application of the Financial Sanction Mechanism to Violators§
51.
In respect of a financial sanction under section 50 regarding each of those listed below, the provisions listed alongside shall apply:
(1)in relation to a licence holder, a portfolio manager licence holder, a payment company and a control permit holder – the provisions under sections 52p to 52ac and section 56h of the Securities Law, with the necessary modifications;
(2)in relation to a bank, an auxiliary corporation and a holder of a stability payment services provider licence – the provisions under sections 14i to 14o of the Banking Ordinance, with the necessary modifications;
(3)in relation to a holder of a licence to provide deposit and credit services, a holder of a credit-granting licence and a holder of a licence to operate a credit intermediation system – the provisions under sections 72(d) and 74 to 93 of the Supervised Financial Services Law, with the necessary modifications;
(4)in relation to a credit bureau and a trader information bureau – the provisions under sections 93 to 105 of the Credit Data Law, with the necessary modifications;
(5)in relation to an insurer – the provisions under sections 92a1 to 92l, 92n, 92p to 92t, 92v and 92w of the Insurance Supervision Law, with the necessary modifications;
(6)in relation to a managing company – the provisions under section 47 of the Provident Funds Supervision Law, with the necessary modifications;
(7)in relation to another body engaged in the financial field prescribed pursuant to section 2(c), as referred to in paragraph (8) of the definition "information source" or in paragraph (10) of the definition "financial body" – provisions regarding financial sanctions in accordance with the powers of the regulator of that body under the law by virtue of which it supervises the financial activity of that body, as detailed in the Tenth Schedule.
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Contact Us →Chapter VI: Imposition of Administrative Enforcement Measures by the Administrative Enforcement Committee
Chapter VI – Definitions§
52.
In this Chapter –
"the Committee" – the Administrative Enforcement Committee appointed pursuant to section 52af(a) of the Securities Law;
"breach" – a breach of the provisions of this Law, listed in the Eleventh Schedule.
Powers of the Administrative Enforcement Committee§
53.
Where a person has committed a breach, the provisions of Chapter VIII-D of the Securities Law that apply in relation to a violator and in relation to a breach of a provision listed in Part 3 of the Seventh Schedule to that Law shall apply, with the necessary modifications, in relation to the violator and in relation to the breach; however, the Committee shall be entitled to impose upon a violator a financial sanction under this Chapter, in accordance with the provisions of section 52ba(a) of the Securities Law, in a maximum amount as set out below, as the case may be:
(1)in relation to a violator who is an individual who is an employee of a licence holder and is not a senior office holder therein – in a maximum amount of NIS 25,000;
(2)in relation to a violator who is another individual – in a maximum amount of NIS 1,000,000;
(3)in relation to a violator who is a corporation – in a maximum amount of NIS 5,000,000.
Authority of the Chairperson of the Authority or a District Prosecutor to Enter into an Arrangement for Refraining from Instituting Proceedings, Discontinuing Proceedings or Refraining from Prosecution, Subject to Conditions§
54.
(a)The authority vested in the Chairperson of the Authority or in a district prosecutor to enter into an arrangement for refraining from instituting proceedings, discontinuing proceedings or refraining from prosecution, as the case may be, subject to conditions, in accordance with the provisions of Chapter IX-A of the Securities Law, shall be vested in them in relation to a breach or an offence, and the provisions of that Chapter shall apply in relation thereto with the necessary modifications.
(b)In this Section, "proceedings" – a breach investigation proceeding or an administrative enforcement proceeding, under Chapter VIII-D of the Securities Law as applied in section 53, or a criminal investigation under section 56c of the Securities Law as applied in section 63(c), as the case may be.
Prohibition of Indemnification and Insurance§
55.
The provisions of section 56h of the Securities Law shall apply in relation to a proceeding under this Chapter.
Restriction on Application of the Provisions of Chapter VI§
56.
The provisions of this Chapter shall not apply to a person upon whom the duty of approval under section 2(b) or (c) applies, nor to a holder of such an approval.
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Contact Us →Chapter VII: Penalties
Penalties§
57.
(a)A person who does any of the following is liable to two years' imprisonment or a fine of two and a half times the fine referred to in section 61(a)(4) of the Penal Law, and if the person is a corporation – twelve and a half times the fine referred to in that section:
(1)engaged in the provision of a financial information service without holding a licence therefor or otherwise than in accordance with the conditions of the licence, in contravention of the provisions of section 2(a);
(2)engaged in the provision of a financial information service without holding an approval therefor or otherwise than in accordance with the conditions of the approval, in contravention of the provisions of section 2(b);
(3)included a misleading detail in an application, report or other information submitted to the Authority, in contravention of the provisions of section 36(d).
(b)A person who, in the course of a business, accesses, by means of an online system, financial information concerning a customer held by an information source, using the customer's access credentials to the customer's account that are intended to verify the customer's identity to the information source, for the purpose of providing a service to the customer relating to the customer's economic conduct, in contravention of the provisions of section 60, is liable to one year's imprisonment or a fine as referred to in section 61(a)(4) of the Penal Law, and if the person is a corporation – double the said fine.
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Contact Us →Chapter VIII: Miscellaneous Provisions
Prevention of Duplication of Administrative Enforcement Measures and Coordination of Proceedings for Their Imposition§
58.
(a)In this Section, "administrative enforcement measure" – any of the following:
(1)a financial sanction;
(2)an administrative warning or a demand for an undertaking to refrain from a breach, in lieu of a financial sanction;
(3)administrative enforcement measures under Section C of Chapter VIII-D of the Securities Law.
(b)In respect of a single act that constitutes a breach of a provision among the provisions under this Law as referred to in section 50 and a breach of a provision among the provisions under another law, no more than one administrative enforcement measure shall be imposed.
(c)
(1)In this subsection, "another regulator" – a regulator that has granted the service provider a licence for the purpose of engaging in its financial activity under another law, or a regulator that administers a register pursuant to section 67(a)(4) of the Credit Data Law;
(2)Where the Authority has sought to open proceedings for the imposition of an administrative enforcement measure under this Law against a service provider who is a licence holder and who also holds a licence under another law for the purpose of engaging in its financial activity or who is registered pursuant to section 67(a)(4) of the Credit Data Law, in relation to a breach for which another regulator is also entitled under another law to impose an administrative enforcement measure on the service provider, the Authority shall notify the other regulator before opening such proceedings;
(3)Where another regulator has sought to open proceedings for the imposition of an administrative enforcement measure under another law against a service provider as referred to in paragraph (2), and considers that the relevant breach is directly related to the service provider's activity as a service provider, the other regulator shall notify the Authority before opening such proceedings.
Fees§
59.
The Minister, upon the proposal of the Authority or in consultation with it and with the approval of the Economic Affairs Committee, may prescribe fees to be paid to the Authority, which shall apply to an applicant for a licence under section 5 and to a licence holder, as well as provisions regarding linkage differentials and interest to be paid in respect of late payment of fees under this Section, and regarding the application of the Tax (Collection) Ordinance to the collection of fees and linkage differentials and interest as aforesaid.
Prohibition of Access Using the Customer's Access Credentials§
60.
No person, including a service provider, shall access financial information concerning a customer held by an information source for the purpose of providing a service to the customer relating to the customer's economic conduct, where such access is effected in the course of a business, by means of an online system, and using the customer's access credentials to the customer's account that are intended to verify the customer's identity to the information source.
Information Defect§
61.
(a)In this Section, "information defect" – a defect in financial information, including a defect in information security that led to the exposure of information concerning the customer or a defect in the reliability of the information.
(b)Where a customer has approached a service provider with whom the customer has entered into an agreement, or an information source, regarding an information defect in respect of which access was granted to a service provider under this Law, the service provider or the information source shall investigate the matter and notify the customer of the results of the investigation, within a reasonable time in the circumstances of the matter.
(c)Where the service provider or the information source has become aware, following an investigation under subsection (b) or otherwise, that an information defect as referred to in that subsection has occurred and that it is responsible for the defect, it shall notify the customer thereof and shall act to correct the defect and to reduce the harm to the customer at the time it became aware of the defect; where the service provider or the information source is not responsible for the defect, it shall take reasonable measures to ascertain who is the party responsible for the defect and to ensure that that party corrects it as aforesaid.
(d)The service provider or the information source shall compensate or indemnify the customer, upon the customer's demand, in respect of damage or expense caused to the customer due to an information defect as referred to in subsection (b) for which it is responsible; where the service provider or the information source is not responsible for the defect, it shall take reasonable measures to ensure that the party responsible for the defect compensates or indemnifies the customer as aforesaid.
Powers Vested in a Regulator§
62.
(a)In this Section –
"the regulator", of a supervised financial body – the information source regulator, the service provider regulator or the financial body regulator, as the case may be;
"supervised financial body" – an information source, a service provider or a financial body.
(b)A regulator may, in accordance with its authority under law, prescribe provisions on matters regulated in this Law, which shall apply to the supervised financial body under its supervision.
(c)Where the Minister has made Regulations under this Law on a particular matter, applicable to a supervised financial body, the regulator of that body may prescribe, in regulator's instructions, detailed provisions on that matter subject to the Regulations prescribed by the Minister.
(d)For the purpose of supervising the implementation of the provisions under this Law, administrative investigation relating to such provisions and their enforcement, the powers vested in the regulator under the law applicable to the supervised financial body shall be vested in the regulator.
Special Provisions Regarding the Powers of the Authority in Relation to Licence Holders§
63.
(a)In the discharge of their duties under this Law, licence holders shall be subject to the supervision of the Authority.
(b)
(1)For the purpose of supervision as referred to in subsection (a), the Authority may issue instructions relating to the modes of operation of licence holders, of senior office holders therein and of those they employ, all for the purpose of ensuring the proper management of licence holders and the safeguarding of customers' interests; such instructions may be issued to all licence holders or to licence holders of a particular type;
(2)Instructions under paragraph (1) do not require publication in Reshumot (Official Gazette); however, the Authority shall publish in Reshumot (Official Gazette) a notice of the issuance of such instructions and of the date of their commencement; such instructions and any amendment thereto shall be made available for public inspection at the offices of the Authority and shall be published on the Authority's website, and the Authority may direct additional modes of publication thereof.
(c)The powers under sections 52aq, 56a, 56a2, 56b, 56b1, 56c, 56c1, 56d and 56e of the Securities Law shall be vested in the Authority for the purpose of supervising the implementation of the provisions under this Law, administrative investigation relating to such provisions or the enforcement of the provisions of this Law in relation to a breach or an offence, all as the case may be and with the necessary modifications; for this purpose –
"breach" – as defined in section 52;
"offence" – any of the following:
(1)an offence under this Law, other than an offence under section 57(a)(2) and an offence under section 57(b) committed by a body required to obtain an approval under section 2(b);
(2)an offence under sections 284, 290, 291, 415, 423, 424, 424a and 425 of the Penal Law, committed in connection with an offence under paragraph (1);
(3)an offence under sections 3 and 4 of the Prohibition of Money Laundering Law, 5760-2000, committed in connection with an offence under paragraphs (1) or (2);
(4)an offence under sections 240, 242, 244, 245 or 246 of the Penal Law, committed in connection with an investigation or judicial proceeding in respect of an offence under paragraphs (1) to (3).
Service of Documents by the Authority§
64.
In respect of a notice, instruction, demand and any other document that the Authority or an employee authorised by it may serve under this Law upon a licence holder or upon a person who has submitted an application for a licence, the provisions under Chapter VII-B of the Securities Law shall apply, with the necessary modifications.
Restriction on Application of the Law§
65.
(a)The duty to provide access under section 39 shall not apply to the types of accounts listed in the Twelfth Schedule in relation to the financial information contained therein.
(b)The provisions under this Law shall not apply to the following:
(1)the transfer of financial information pursuant to the provisions of sections 5b1, 7e(a) and 7g(a) of the Banking (Customer Service) Law and the use of that information by a person to whom that information was transferred pursuant to the provisions of those sections;
(2)the transfer of financial information to a credit data repository pursuant to the Credit Data Law, the transfer of any information originating from the repository to another person pursuant to that Law, and the use of that information by a person to whom that information was transferred pursuant to the provisions of that Law;
(3)the transfer of financial information to the pension clearing house pursuant to the provisions of Chapter V-A of the Pension Advice, Marketing and Clearing System Law, its transfer by the clearing house to another person pursuant to that Law, and the use of that information by a person to whom that information was transferred pursuant to that Chapter;
(4)the transfer of financial information that constitutes charges and credits of suppliers effected by means of debit cards to an aggregator, as defined in section 28(a) of the Regulation of Engagement in Payment Services Law, in accordance with the provisions of that section, and the use by an aggregator of that information transferred to it pursuant to that section;
(5)the transfer of financial information pursuant to instructions of a regulator of a payment account manager to a payer as defined in the Regulation of Engagement in Payment Services Law, prescribed pursuant to section 41(a)(4) of that Law.
(c)The Minister, with the consent of the Minister of Justice and in consultation with the Authority and the Governor, may prescribe that the provisions of this Law shall not apply to a transfer under another law of financial information not listed in subsection (b), as the Minister shall prescribe, and to the use of such information transferred pursuant to the provisions of that other law.
Preservation of Powers of a Public Authority§
66.
Nothing in the provisions of this Law shall derogate from the powers vested under law in a public authority, including the Central Bureau of Statistics and the Authority for the Prohibition of Money Laundering and Terror Financing.
Amendment of Schedules§
67.
(a)The Minister may, by Order, amend the First Schedule.
(b)The Minister, upon the proposal of the information source regulator or in consultation with it, may, by Order, amend the Second Schedule, and may prescribe in such an Order characteristics of a system to serve all information sources or a particular type of information source; however, an Order as aforesaid in relation to information sources supervised by the Bank of Israel shall be made in consultation with the Governor, and in relation to a system that at the time of making the Order is not in use by any of the supervised information sources – with the consent of the Governor.
(c)The Minister, in consultation with the Authority and the information source regulator and with the approval of the Economic Affairs Committee, and in relation to an information source supervised by the Bank of Israel – the Governor, with the consent of the Minister, in consultation with the Authority and with the approval of the Economic Affairs Committee, may, by Order, amend the Third Schedule.
(d)The Minister, in consultation with the service provider regulator, may, by Order, amend the Fourth Schedule.
(e)The Minister, in consultation with the service provider regulator and the information source regulator and with the approval of the Economic Affairs Committee, and in relation to an information source supervised by the Bank of Israel – also with the consent of the Governor, may, by Order, amend the Fifth Schedule.
(f)The Minister, with the consent of the Minister of Justice and the Governor, in consultation with the relevant regulator and with the approval of the Economic Affairs Committee, may, by Order, amend the Sixth Schedule, the Seventh Schedule, the Eighth Schedule and the Ninth Schedule, provided that the basic amount under the Sixth Schedule shall not exceed NIS 300,000.
(g)The Minister, with the consent of the Minister of Justice, may, by Order, amend the Tenth Schedule.
(h)The Minister, upon the proposal of the Authority or in consultation with it, with the consent of the Minister of Justice and with the approval of the Economic Affairs Committee, may, by Order, amend the Eleventh Schedule.
(i)The Minister, in consultation with the information source regulator and with the approval of the Economic Affairs Committee, and in relation to an information source supervised by the Bank of Israel – the Governor, with the consent of the Minister and with the approval of the Economic Affairs Committee, may, by Order, amend the Twelfth Schedule.
Designation of Additional Financial Bodies, Representatives and Information Sources§
68.
(a)The Minister, with the approval of the Economics Committee, may designate by Order an additional financial body beyond those listed in the definition of "financial body", provided that it operates in the financial field and that its activity in that field is supervised under law.
(b)The Minister, with the consent of the Minister of Justice, after consulting the regulator of the information source and the regulator of the service provider, and with the approval of the Economics Committee, may designate by Order an additional representative beyond those listed in the definition of "representative", provided that its occupation requires a licence under another law and that professional ethics rules under law apply to that occupation.
(c)The Minister may designate by Order an additional information source beyond those listed in the definition of "information source", provided that it operates in the financial field and that its financial activity is supervised under law; an Order as aforesaid shall be made after consulting the regulator of that body and with the approval of the Economics Committee, and in relation to a body as aforesaid whose activity is supervised by the Bank of Israel – with the consent of the Governor and with the approval of the Economics Committee.
Designation of Small Scale of Activity for Information Sources§
69.
(a)The Governor, with the consent of the Minister, may prescribe by Order –
(1)in relation to the value of the assets of an information source that is a bank – a rate other than the rate prescribed in paragraph (1) of the definition of "small scale of activity";
(2)in relation to an information source supervised by the Bank of Israel that is not a bank – a scale of activity below which the scale of activity shall be considered a small scale of activity as referred to in paragraph (2) of the definition of "small scale of activity".
(b)The Minister, after consulting the regulator of the information source, may prescribe by Order –
(1)in relation to the credit portfolio of an information source that is a holder of a credit-granting licence or a holder of a licence to operate a credit intermediation system – an amount other than the amount prescribed in paragraph (3) of the definition of "small scale of activity";
(2)in relation to the deposit portfolio or credit portfolio of an information source that is a holder of a licence to provide deposit and credit services – an amount other than the amount prescribed in paragraph (3) of the definition of "small scale of activity";
(3)in relation to the amount of funds received by an information source that is a payment company for the purpose of providing payment services to its customers in the calendar year preceding the date of submission of an application as referred to in section 41(c)(1), or in relation to the amount of funds transferred by an information source that is a payment company for the purpose of providing payment services to its customers in the calendar year preceding the date of submission of an application as referred to in section 41(c)(1) – an amount other than the amount prescribed in paragraph (3a) of the definition of "small scale of activity".
(c)The Minister, after consulting the Authority and the regulator of the information source and with the approval of the Economics Committee, may prescribe by Order, in relation to an information source not listed in paragraphs (1) to (3a) of the definition of "small scale of activity", a scale of activity below which the scale of activity shall be considered a small scale of activity as referred to in paragraph (4) of the definition of "small scale of activity".
Implementation and Regulations§
70.
(a)The Minister is responsible for the implementation of this Law and may make Regulations for its implementation.
(b)Regulations under this Law in relation to service providers or information sources may be made generally or for categories of service providers or information sources; where this Law provides that such Regulations shall be made after consulting the regulator of the service provider or the regulator of the information source, the consultation shall be conducted with the regulator of the service provider or the regulator of the information source, as the case may be.
(c)The Minister may prescribe by Order a technological means other than the Internet in relation to the definition of "online".
Coordination between Regulators and Maintenance of Uniformity§
71.
(a)Where the Authority seeks to prescribe regulator's instructions under this Law that will apply to service providers who are also bodies supervised by the Commissioner of Capital Markets, Insurance and Savings or by the Supervisor of Providers of Financial Services, it shall do so after consulting the Commissioner or the Supervisor as aforesaid, or a person authorised by the Commissioner or the Supervisor from among their employees for that purpose, as the case may be; the Commissioner, the Supervisor or the person so authorised shall submit their position within fourteen days of the date of the Authority's approach to conduct the consultation; if the position is not submitted within that time, the Authority may prescribe the regulator's instructions without such consultation.
(b)The Minister may make Regulations on matters in respect of which a regulator has been granted the power to prescribe regulator's instructions under this Law, where one of the following applies:
(1)the Minister has found it appropriate to do so in order to maintain uniformity in instructions under this Law applicable to different bodies supervised by different regulators or applicable to a single body supervised by several regulators;
(2)the Minister has found it appropriate to do so in order to protect the interests of customers;
(3)no regulator's instructions have been prescribed under this Law.
(c)Regulations under subsection (b) shall be made after consulting the regulator of the service provider or the regulator of the information source, as the case may be; Regulations in relation to section 24(2) shall also be made after consulting the Minister of Justice, and Regulations in relation to sections 27(c)(1), 29(c)(3), 29(g), 35(b)(3) and 48(a)(1) and (2) – also with the consent of the Minister of Justice.
(d)Where the Minister has made Regulations under subsection (b), the regulator may prescribe, in regulator's instructions, provisions on the same matters in respect of which such Regulations were made, subject to those Regulations.
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