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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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More
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Chapter II: Licensing
Section A: Obligation to Hold a Licence or Approval
Obligation to hold a licence or approval§
2.
(a)A person not enumerated in subsection (b) shall not engage in the provision of a financial information service unless a licence therefor has been granted to that person by the Authority pursuant to the provisions of Section B, and in accordance with the conditions of the licence and the provisions under this Law.
(b)An information source enumerated in paragraphs (1) to (7) of the definition "information source", a credit bureau and a business information bureau shall not engage in the provision of a financial information service unless an approval therefor has been granted to them by the information source's regulator or the Commissioner for Credit Data Sharing, as the case may be, pursuant to the provisions of Section D, and in accordance with the conditions of the approval and the provisions under this Law.
(c)Notwithstanding the provisions of subsections (a) and (b), the Minister, with the approval of the Economics Committee, may prescribe additional categories of bodies engaged in the financial field whose financial activity is supervised by law, to which the licence obligation under subsection (a) shall not apply and to which the approval obligation under subsection (b) shall apply; Regulations under this subsection shall be made pursuant to the proposal of the regulator of the body so prescribed or in consultation with that regulator, with the consent of the Minister of Justice and in consultation with the Authority, and in relation to a body supervised by the Bank of Israel – pursuant to the proposal of the Governor or with the Governor's consent, with the consent of the Minister of Justice and in consultation with the Authority.
Exemption from licence and approval§
3.
(a)Notwithstanding the provisions of section 2, a financial body, a representative or another body prescribed pursuant to section 29(f)(2)(b), that has received financial information from a service provider pursuant to the provisions of section 29, is exempt from a licence or approval in respect of the use of the information for the purpose for which it was transferred to them in accordance with the provisions of section 29.
(b)The Minister, with the consent of the Minister of Justice and the Governor, in consultation with the Authority and with the approval of the Economics Committee, may prescribe additional bodies that shall be exempt from the obligation to hold a licence or approval pursuant to section 2, generally or in relation to a specific service that they provide, as prescribed; in Regulations under this subsection, the Minister may prescribe conditions that shall apply to the provision of the service by an exempt body as aforesaid.
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Contact Us →Section B: Licence from the Authority
Conditions for granting a licence§
4.
(a)The Authority may grant a licence for the provision of a financial information service to an applicant in whom all of the following conditions are met:
(1)the applicant is a company as defined in the Companies Law or is registered as a foreign company pursuant to section 346 of the Companies Law;
(2)control of the applicant's business and its management are exercised in Israel, and if they are not exercised in Israel – the applicant is capable of complying with all the provisions under this Law and those provisions can be enforced against the applicant;
(3)the applicant has appropriate technological means for the purpose of providing the financial information service it seeks to provide and proficiency in operating them, in a manner that ensures the reliability of the systems by means of which the service will be provided and compliance with the provisions under this Law, including the provisions relating to privacy protection, information security, cyber protection and risk management;
(4)the business plan and the declaration regarding its financial means that the applicant attached to its application pursuant to section 5 attest to its ability to provide the financial information service it seeks to provide and to comply with the provisions under this Law;
(5)the applicant meets the requirements in relation to insurance, minimum equity capital or other security, as required of a licence holder pursuant to section 36(a);
(6)no order for the opening of proceedings pursuant to the Insolvency and Economic Rehabilitation Law, 5778-2018 is pending against the applicant, the court has not appointed a receiver for the applicant or ordered its winding-up, and the applicant has not resolved to wind itself up voluntarily;
(7)if a controlling shareholder exists – the conditions for receiving a control permit pursuant to section 9 are met in that person.
(b)If the Authority has found that an applicant for a licence is not fit to engage in the provision of a financial information service, on grounds relating to the public interest or on grounds relating to the trustworthiness of the applicant, the trustworthiness of a controlling shareholder in the applicant, or the trustworthiness of a senior office holder in the applicant or in a controlling shareholder in the applicant, the Authority may, by a reasoned written decision, decline to grant a licence to the applicant even if the conditions in subsection (a) are met in the applicant, provided that the Authority has given the applicant an opportunity to present its arguments before the Authority or before a person among its employees whom the Authority has authorised for that purpose, in the manner the Authority has directed.
Application for a licence§
5.
(a)An application for a licence shall be submitted to the Authority; in the application, the licence applicant shall specify the type of financial information service that the applicant wishes to provide.
(b)Documents attesting to the fulfilment of the conditions for obtaining a licence as set out in section 4 shall be attached to the application for a licence, including a declaration regarding the financial means of the licence applicant and the applicant's business plan; the Authority shall determine, by rules, the particulars to be included by the applicant in the declaration and the business plan as aforesaid, and it may also determine, by rules, additional particulars, documents and reports to be included in or attached to the application.
(c)The chairperson of the Authority or an employee of the Authority whom the chairperson has authorised for that purpose may require the licence applicant to provide additional particulars, documents or reports beyond those referred to in subsections (a) and (b), if it appears to the chairperson that this is necessary for the examination of whether a condition for the grant of the licence is fulfilled and for reaching a decision on the application.
Conditions in a licence§
6.
(a)The licence shall set out, inter alia, the type of financial information service that the licence holder is authorised to provide, and the Authority may prescribe in the licence conditions that shall apply to the licence holder.
(b)The Authority may vary the conditions it has prescribed in a licence as referred to in subsection (a), provided that it has notified the licence holder of its reasons and has given the licence holder an opportunity to present arguments before it or before a person it has authorised for that purpose from among its employees, in the manner it has directed.
Cancellation or suspension of a licence§
7.
(a)The Authority may, by a reasoned decision in writing, cancel a licence or suspend it for a period not exceeding one year or — for special reasons — for a period not exceeding five years, if it has found that one of the following applies:
(1)the licence was granted on the basis of false or incorrect information;
(2)a condition for the grant of a licence as referred to in section 4(a) has ceased to be fulfilled in respect of the licence holder, or the licence holder has breached a condition prescribed in the licence pursuant to section 6;
(3)the licence holder has breached a provision of this Law;
(4)a circumstance listed in the list prescribed pursuant to subsection (b) exists that attests to a defect in trustworthiness as referred to in that subsection; such circumstances shall be examined in respect of the licence holder, a controlling shareholder therein, and a senior office holder in the licence holder or in a controlling shareholder therein;
(5)reasons of public interest justify the cancellation or suspension of the licence.
(b)The Authority shall prescribe a list of circumstances capable of attesting to a defect in the trustworthiness of a licence holder, of a controlling shareholder therein, or of a senior office holder therein or in a controlling shareholder therein (in this subsection — the list); the list shall be published on the Authority's website and need not be published in Reshumot (Official Gazette); the list shall enter into force upon the expiry of 30 days from the date of publication, however a change in the list shall not apply to a pending proceeding pursuant to subsection (a)(4); notice of the publication of the list and of every change thereto and the date of their commencement shall be published in Reshumot (Official Gazette).
(c)If the chairperson of the Authority considers that a defect referred to in subsection (a)(1) to (5) on account of which the Authority is authorised to take measures as referred to in that subsection is capable of rectification, the chairperson may direct the licence holder to rectify it, and may direct the manner and time of rectification; if the said time has elapsed and the defect has not been rectified to the satisfaction of the chairperson of the Authority, the Authority may take measures as referred to in subsection (a).
(d)The Authority shall not cancel or suspend a licence as referred to in subsection (a) unless it has given the licence holder an opportunity to present arguments before it or before a person it has authorised for that purpose from among its employees, in the manner it has directed; however, the chairperson of the Authority may, by a reasoned decision in writing, suspend a licence immediately if special reasons justifying this exist, provided that the chairperson gives the licence holder an opportunity to present arguments before the Authority as aforesaid, as soon as possible after the suspension of the licence and no later than 30 days after such suspension.
(e)Where the Authority has cancelled or suspended a licence pursuant to this section, it shall publish a notice to that effect on the Authority's website, and in the case of a suspension of a licence — it shall also publish, in the said manner, the period of suspension.
Supervision of a person whose licence has been cancelled or suspended§
8.
(a)A person whose licence has been cancelled or suspended is required to comply with all provisions applicable to a licence holder under this Law, for as long as commitments given to customers prior to the cancellation or suspension of the licence remain outstanding.
(b)The chairperson of the Authority or an employee of the Authority whom the chairperson has authorised for that purpose may give directions to a person whose licence has been cancelled or suspended regarding the management of that person's business, to the extent that appears to the chairperson to be necessary in order to protect customers who entered into an engagement with the licence holder prior to the cancellation or suspension of the licence; nothing in such a direction shall relieve a person whose licence has been cancelled or suspended of responsibility for fulfilment of commitments given to customers prior to the cancellation or suspension of the licence.
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Contact Us →Section C: Permit for Control of a Licence Holder
Control permit§
9.
(a)No person shall exercise control over a licence holder except pursuant to a control permit from the Authority.
(b)The Authority may decline to grant a control permit pursuant to this section, for the following reasons only:
(1)an order to open proceedings pursuant to the Insolvency and Economic Rehabilitation Law, 5778-2018 has been made in respect of the permit applicant, or one of the following applies to the applicant, as the case may be:
(a)in respect of an applicant who is an individual — the applicant has been declared legally incompetent;
(b)in respect of an applicant that is a corporation — an order for its winding up has been made or a receiver has been appointed over its assets or a material part thereof due to non-payment of a debt;
(2)for reasons relating to the public interest or to the trustworthiness of the permit applicant or of a senior office holder therein.
(c)The provisions of subsection (a) shall not apply to a person who became a controlling shareholder in a licence holder by virtue of a transfer of means of control by operation of law.
Transfer of means of control§
10.
A person holding means of control in a licence holder shall not transfer them to another person who is required to hold a control permit and does not hold such a permit.
Cancellation of a control permit§
11.
(a)The Authority may cancel a control permit, by a reasoned decision in writing, if it has found that one of the following applies:
(1)the matter referred to in section 9(b)(1) applies;
(2)a circumstance listed in the list prescribed by the Authority pursuant to section 7(b) exists, attesting to a defect in the trustworthiness of the permit holder or of a senior office holder therein;
(3)reasons of public interest justify the cancellation of the permit.
(b)If the chairperson of the Authority considers that a defect referred to in subsection (a)(1) to (3) on account of which the Authority is authorised to cancel the control permit is capable of rectification, the chairperson may direct the control permit holder to rectify it, and may direct the manner and time of rectification; if the said time has elapsed and the defect has not been rectified to the satisfaction of the chairperson of the Authority, the Authority may cancel the control permit.
Directions to a person who acted without a control permit§
12.
(a)If the chairperson of the Authority finds that a person is a controlling shareholder in a licence holder without a control permit, the chairperson may, by a reasoned decision in writing, after giving that person an opportunity to present arguments, direct —
(1)that the means of control held by that person, in whole or in part, be sold within a period to be directed, so that the person shall no longer be a controlling shareholder;
(2)that voting rights or rights to appoint a director or general manager by virtue of means of control held by that person without a control permit shall not be exercised;
(3)that a vote by virtue of means of control held by that person without a control permit shall not be counted in the tally of votes;
(4)that the appointment of a director or general manager effected by that person be cancelled.
(b)Where a person became a controlling shareholder in a licence holder by virtue of a transfer of means of control by operation of law, the Authority may, after giving that person an opportunity to present arguments, direct that person to sell the said means of control, in whole or in part, within a period to be directed, so that the person shall no longer be such a controlling shareholder.
(c)Where the Authority has directed pursuant to subsection (b) that means of control be sold, it may give a direction as referred to in subsection (a)(2) to (4), with the necessary modifications.
(d)Where a controlling shareholder has not sold the means of control in accordance with the directions of the chairperson of the Authority or the Authority pursuant to subsections (a) or (b), the court may, upon the application of the Authority, appoint a receiver to sell the said means of control.
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