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Financial Services Supervision Law (Pension Counselling, Marketing and Clearing System), 5765-2005

חוק הפיקוח על שירותים פיננסיים (ייעוץ, שיווק ומערכת סליקה פנסיוניים), תשס"ה-2005

Published: 2005-08-10Consolidated Hebrew text as of 2026-07-27 · Last amended 2026-07-22✓ 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

This English text was translated from the official Hebrew using a range of translation tools, and it undergoes ongoing checks and updates. It is not a certified translation.

Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.

Chapter I: Definitions

Definitions§

1.

In this Law –

"bank", "foreign bank" and "banking corporation" – as defined in the Banking (Licensing) Law;

"interested party" – as defined in the Securities Law;

"licence holder" – any of the following:

(1)a pension counsellor;
(2)a pension agent;

"means of control", "institutional body", "holding", "insurer", "insurance agent", "relative" and "control" – as defined in the Insurance Supervision Law;

"default interest" and "shekel interest" – as defined in the Interest and Linkage Adjudication Law;

"the Committee" – as defined in the Insurance Supervision Law;

"the Commissioner" – the Commissioner of Capital Markets, Insurance and Savings as defined in the Insurance Supervision Law;

"Supervisor of Banks" – as defined in the Banking Ordinance;

"nexus", of a person, to a pension product – any of the following:

(1)that person is a managing company of a provident fund that is not an insurance provident fund, including a training fund, which is the pension product;
(2)that person is an insurer managing an insurance provident fund or operating an insurance plan, which is the pension product;
(3)in respect of a person who is not one of those listed in paragraphs (1) and (2), also any of the following:
(a)that person is an employee of, or is employed by, or is an office holder in, an institutional body in respect of which the provisions of paragraphs (1) or (2) apply;
(b)that person is entitled to a benefit in connection with the execution of a transaction in the pension product, other than the receipt of a commission pursuant to the provisions of section 19(a)(2);

for the purposes of this definition, "person" – includes one who controls that person or who is controlled by any of them, and an office holder in any of them;

"company operating a central pension clearing system" – a company that has received a licence to operate a central pension clearing system;

"managing company", "index", "employer", "member", "self-employed member", "salaried member", "provident fund", "personal provident fund for severance pay", "insurance provident fund", "investment provident fund", "pension provident fund", "savings provident fund", "benefit provident fund" and "training fund" – as defined in the Provident Funds Supervision Law;

"Banking (Licensing) Law" – the Banking (Licensing) Law, 5741-1981;

"Companies Law" – Companies Law, 5759-1999;

"Investment Advice Occupation Regulation Law" – the Investment Advice, Investment Marketing and Investment Portfolio Management Occupation Regulation Law, 5755-1995;

"Penal Law" – Penal Law, 5737-1977;

"Insurance Supervision Law" – the Financial Services Supervision Law (Insurance), 5741-1981;

"Provident Funds Supervision Law" – the Financial Services Supervision Law (Provident Funds), 5765-2005;

"Joint Investments Law" – the Joint Investments in Trust Law, 5754-1994;

"Securities Law" – the Securities Law, 5728-1968;

"Interest and Linkage Adjudication Law" – the Interest and Linkage Adjudication Law, 5721-1961;

"savings", by means of a pension product – including the continued transfer of amounts to savings by means of a pension product or the leaving of accumulated amounts in such savings;

"benefit" – a benefit given, not by a client, to a person or to another on that person's behalf or for that person's benefit, directly or indirectly;

"pension counsellor" – the holder of a pension counsellor licence granted to that person pursuant to section 5;

"pension counselling" – the provision of advice to an individual regarding the advisability of savings, of that individual or of that individual's relative, as a salaried member, as a self-employed member or as an insured, by means of a pension product in which the advice provider has no nexus;

"client" – an individual to whom pension counselling or pension marketing is provided that relates to savings, of that individual or of that individual's relative, as a salaried member, as a self-employed member or as an insured, and for the purposes of the definition "central pension clearing system" and the provisions of Chapter V-A – such an individual as well as a member and an insured;

"pension product" – any product included in one of the types of pension product;

"employer" – including a person authorised on that person's behalf to deposit funds on behalf of that person's employees;

"central pension clearing system" or "the System" – a central system intended for the transfer of information about clients or of funds from all institutional bodies and between them, to or from all pension counsellors and pension agents, or for the transfer of information from all institutional bodies to clients, all in respect of a pension product or an insurance plan as defined in section 31i(g);

"user", of the System – an institutional body, pension counsellor, pension agent, employer or another company operating a central pension clearing system, that makes use of the System;

"office holder" – as defined in the Companies Law, and in respect of a company operating a central pension clearing system – including any employee directly subordinate to that office holder;

"type of pension product" – any of the following, including any combination thereof:

(1)a pension provident fund that is not an insurance provident fund;
(1a)a savings provident fund;
(2)a benefit provident fund that is not an insurance provident fund;
(3)a personal provident fund for severance pay that is not an insurance provident fund;
(4)a pension provident fund that is an insurance provident fund;
(4a)(Repealed)
(5)a benefit provident fund that is an insurance provident fund;
(6)a personal provident fund for severance pay that is an insurance provident fund;
(7)a training fund;
(7a)an investment provident fund;
(8)insurance policies under which members of a provident fund are insured pursuant to section 16(d)(6) of the Provident Funds Supervision Law, pursuant to an insurance plan permitted by the Commissioner that is included in a provident fund listed in paragraphs (1) to (7) or sold in conjunction with one of them;
(9)any other type of product prescribed by the Minister;

"pension agent" – a person who is entitled to engage in pension marketing pursuant to the provisions of section 3;

"offence" – any of the following:

(1)an offence under one of the laws listed below, other than an offence punishable by a fine only: this Law; the Provident Funds Supervision Law; the Investment Advice Occupation Regulation Law; the Companies Ordinance; the Securities Law; the Banking (Licensing) Law; the Banking Ordinance; the Banking (Service to Customer) Law, 5741-1981; the Insurance Supervision Law; the Currency Control Law, 5738-1978; the Income Tax Ordinance [New Version]; the Value Added Tax Law, 5736-1976; the Customs Ordinance; the Trade Levies Law, 5751-1991; the Prohibition on Money Laundering Law, 5760-2000;
(2)an offence that, by reason of its nature, gravity or circumstances, renders the person who committed it unfit to engage in pension counselling or pension marketing, or to serve as an office holder in a corporation that is a pension counsellor, as the case may be;

"transaction" – an engagement of a client or of that client's relative with an institutional body, in respect of savings by means of a pension product in which the institutional body has a nexus pursuant to paragraphs (1) or (2) of the definition "nexus", as well as the performance of actions in that pension product;

"Banking Ordinance" – the Banking Ordinance, 1941;

"Bankruptcy Ordinance" – the Bankruptcy Ordinance [New Version], 5740-1980;

"licence to operate a central pension clearing system" – a licence to operate a central pension clearing system, as defined in section 31a;

"partnership" and "limited partner" – as defined in the Partnerships Ordinance [New Version], 5735-1975;

"pension marketing" – the provision of advice to an individual regarding the advisability of savings, of that individual or of that individual's relative, as a salaried member, as a self-employed member or as an insured, by means of a pension product in which the advice provider has a nexus;

"the Minister" – the Minister of Finance.

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Chapter II: Engagement in Pension Counselling and Pension Marketing

Section A: Licensing Requirement

Engagement in Pension Counselling§
2.
(a)No person shall engage in pension counselling unless he holds a pension counsellor licence and in accordance with the conditions of the licence.
(b)An individual holding a pension counsellor licence may engage in pension counselling as an individual, as an employee in a company or partnership that holds a pension counsellor licence, or as a partner in a partnership that holds such a licence.
Engagement in Pension Marketing§
3.
(a)No person shall engage in pension marketing unless he is one of those listed in paragraphs (1) to (3) below and in accordance with the conditions set out therein:
(1)the holder of an insurance agent licence in the branch of pension insurance as defined in section 28(a)(3) of the Insurance Supervision Law, granted to him pursuant to section 25 or 26 of that Law (in this Law – a pension insurance agent) – in accordance with the conditions of the licence;
(2)the holder of a pension marketing agent licence granted to him pursuant to section 6 (in this Law – a pension marketing agent), who is an employee of an institutional body as referred to in paragraph (3) – in the framework of such employment and in accordance with the conditions of the licence;
(3)an institutional body – in respect of pension products in which it has a nexus pursuant to paragraphs (1) or (2) of the definition "nexus", provided that every person who engages in pension marketing on its behalf is one of those listed in paragraphs (1) or (2).
(b)A person engaged in pension marketing or a related body shall not provide operational services to an employer on behalf of whose employees they provide pension marketing, unless all of the following conditions are met:
(1)the pension insurance agent shall collect from the employer alone, each month, clearing fees for operational services in respect of each employee, which shall not be less than the higher of the following:
(a)0.6 percent of the total payments deposited by the employer into provident funds for the employee, plus value added tax;
(b)NIS 10.50 plus value added tax; this amount shall be updated annually on 1 January, according to the rate of increase of the index known at that date compared with the index known on 1 January 2016;
(2)
(a)notwithstanding any law or agreement, the distribution commission paid by an institutional body to the pension insurance agent shall be reduced by the rate of the clearing fees paid to him by the employer pursuant to paragraph (1), or to 0, whichever is higher;
(b)the management fees paid by an employee in respect of whom clearing fees were paid as referred to in sub-paragraph (a) shall be reduced by the rate of the reduction in the distribution commission pursuant to that sub-paragraph;
(3)a default provident fund has been selected for the employees pursuant to section 20 of the Provident Funds Supervision Law.
(c)In this section –

"related body" – any of the following, all at a rate of five percent or more of a particular type of means of control:

(1)one who holds an interest in a person engaged in pension marketing;
(2)one in whom a person engaged in pension marketing holds an interest;
(3)a corporation in which one who holds an interest therein also holds an interest in a person engaged in pension marketing;

"person engaged in pension marketing" – any of those listed in paragraphs (1) to (3) of subsection (a);

"operational services" – at least one of the following:

(1)the deposit of funds for the employer's employees into an institutional body;
(2)the transfer of information in connection with the deposit of funds as referred to in paragraph (1);
(3)the handling of feedback for control between the institutional body and an employer in connection with the deposit of funds as referred to in paragraph (1);
(4)additional operational actions prescribed by the Commissioner.
Limitation on Application§
4.

Nothing in the provisions of sections 2 and 3 shall prevent a person who holds a licence as defined in the Investment Advice Occupation Regulation Law from engaging in investment advice or investment marketing, as the case may be, as defined in that Law, in respect of a training fund.

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Section B: Pension Counsellor Licence and Pension Marketing Agent Licence

Conditions for the Grant of a Pension Counsellor Licence§
5.
(a)The Commissioner shall grant a pension counsellor licence to an applicant who is an individual, if he is satisfied that all of the following conditions are fulfilled in respect of that applicant:
(1)he is of full age;
(2)he is an Israeli citizen or a resident of Israel;
(3)he has not been convicted of an offence;
(4)he has passed professional examinations, the subjects and procedures of which were prescribed in Regulations;
(5)he has completed an internship, for a period and in accordance with procedures prescribed in Regulations.
(b)The Commissioner shall grant a pension counsellor licence to an applicant that is a partnership, if he is satisfied that all of the following conditions are fulfilled in respect of it:
(1)the partners hold pension counsellor licences;
(2)the partnership has undertaken that those who will engage in pension counselling on its behalf are its employees or partners therein who hold pension counsellor licences.
(b1)The Commissioner shall grant a pension counsellor licence to an applicant that is a cooperative society holding a licence to provide deposit and credit services as defined in the Financial Services Supervision Law (Regulated Financial Services), 5776-2016, if he is satisfied that all of the following conditions are fulfilled in respect of it:
(1)the cooperative society has undertaken that those who will engage in pension counselling on its behalf are its employees who hold pension counsellor licences;
(2)the cooperative society has undertaken that no person known to it to have been convicted of an offence shall serve in it as an office holder.
(c)The Commissioner shall grant a pension counsellor licence to an applicant that is a company as defined in the Companies Law, if he is satisfied that all of the following conditions are fulfilled in respect of it:
(1)the company has undertaken that those who will engage in pension counselling on its behalf are its employees who hold pension counsellor licences;
(2)the company has undertaken that no person known to it to have been convicted of an offence shall serve in it as an office holder.
(d)The Commissioner shall not grant a pension counsellor licence to an applicant, even if the conditions set out in subsections (a) to (c) are fulfilled in respect of that applicant, if the applicant is any of the following:
(1)a pension agent or an institutional body;
(2)an insurance agent;
(3)an investment marketer as defined in the Investment Advice Occupation Regulation Law;
(4)one who controls or holds more than ten percent of a particular type of means of control in any of those listed in paragraphs (1) to (3), other than a banking corporation that controls an insurance agent in accordance with the provisions of section 11(b)(2) of the Banking (Licensing) Law;
(5)an employers' organisation;
(6)one who is controlled by or employed by any of those listed in paragraphs (1) to (5); however, a banking corporation controlled by one who holds more than ten percent of a particular type of means of control in an institutional body, or controlled by one who controls an institutional body, shall be entitled to receive a pension counselling licence subject to conditions prescribed by the Commissioner to prevent conflicts of interest in the provision of advice, and such a licence shall be deemed to state that the banking corporation is prohibited from engaging in pension counselling in relation to pension products in respect of which the said institutional body has a nexus;
(7)one in whom any of those listed in paragraphs (1) to (5) holds more than ten percent of a particular type of means of control, other than a banking corporation.
Conditions for the Grant of a Pension Marketing Agent Licence§
6.
(a)The Commissioner shall grant a pension marketing agent licence to an applicant, if he is satisfied that all of the following conditions are fulfilled in respect of that applicant:
(1)he is an individual;
(2)he is of full age;
(3)he is an Israeli citizen or a resident of Israel;
(4)he has not been convicted of an offence;
(5)he has passed professional examinations, the subjects and procedures of which were prescribed in Regulations;
(6)he has completed an internship, for a period and in accordance with procedures prescribed in Regulations.
(b)The Commissioner shall not grant a pension marketing agent licence to an applicant, even if the conditions set out in subsection (a) are fulfilled in respect of that applicant, if the applicant is any of the following:
(1)a pension counsellor;
(2)an investment adviser as defined in the Investment Advice Occupation Regulation Law;
(3)an individual employed by one who is not entitled to receive a pension insurance agent licence pursuant to the provisions of section 28a of the Insurance Supervision Law.
Regulations regarding Examinations and Internship§
7.
(a)Regulations regarding sections 5(a)(4) and (5) and 6(a)(5) and (6) shall be made by the Minister, generally or for categories of applicants.
(b)The Minister may prescribe cases in which an applicant shall be exempt from examinations or from the obligation to complete an internship pursuant to sections 5(a)(4) or (5) or 6(a)(5) or (6), or from both obligations together.
Application for a Licence§
8.
(a)A person applying to receive a pension counsellor licence or a pension marketing agent licence shall submit an application to the Commissioner for the appropriate licence.
(b)An application for a licence as referred to in subsection (a) shall include such particulars, documents and reports as the Commissioner may direct.
The Commissioner's Decision on an Application§
9.
(a)If the Commissioner is of the opinion that the application pursuant to section 8 should be granted, he shall issue to the applicant a pension counsellor licence or a pension marketing agent licence, as the case may be; if the Commissioner is of the opinion that conditions should be attached to such a licence, he shall notify the applicant of his reasons and afford the applicant an opportunity to state his arguments before the decision is made.
(b)The Commissioner may grant a pension counsellor licence or a pension marketing agent licence to an applicant, even though a condition set out in sections 5(a)(4) or (5) or 6(a)(5) or (6), as the case may be, is not fulfilled in respect of that applicant, if he is satisfied that, for special reasons, the applicant may be regarded as qualified to receive such a licence, having regard to his education and professional experience.
(c)The Commissioner may refuse to grant a pension counsellor licence or a pension marketing agent licence to an applicant, even if the conditions set out in section 5 or section 6, as the case may be, are fulfilled in respect of that applicant, if any of the following applies to the applicant:
(1)he has been declared legally incompetent, or has been declared bankrupt and has not yet been granted a discharge as referred to in section 62 of the Bankruptcy Ordinance [New Version], 5740-1980, and if the applicant is a corporation – a provisional winding-up order has been made in respect of it or a receiver has been appointed for it, or an application for any of these has been submitted, provided that the applicant has been afforded an opportunity to state his arguments before the decision is made;
(2)an indictment has been filed against him for an offence and a final judgment has not yet been given in the matter, or a criminal investigation is being conducted against him on suspicion of the commission of an offence, provided that the applicant has been afforded an opportunity to state his arguments before the decision is made;
(3)the Commissioner is of the opinion, after consultation with the Committee, and after the applicant has been afforded an opportunity to state his arguments before it in the manner it has directed, that there exist circumstances by reason of which the applicant is not fit to serve as the holder of a pension counsellor licence or as the holder of a pension marketing agent licence, having regard to the requirements of the profession, and if the applicant is a corporation – that such circumstances exist in relation to an office holder therein or to one who controls it.
Revocation of a Licence, Suspension thereof or Imposition of Conditions thereon§
10.
(a)The Commissioner may revoke a pension counsellor licence or a pension marketing agent licence, suspend it for a period to be determined by the Commissioner, impose conditions thereon or vary any of its conditions, upon the occurrence of any of the following:
(1)the licence was granted on the basis of false information;
(2)any of the conditions for the grant of the licence has ceased to be fulfilled;
(3)the licence holder has breached a condition of the licence;
(4)the licence holder has breached a provision of legislation or has breached an administrative instruction under this Law, in a manner that is capable of impairing the licence holder's reliability or professionalism;
(5)the licence holder has been declared legally incompetent, or has been declared bankrupt and has not yet been granted a discharge as referred to in section 62 of the Bankruptcy Ordinance, and if the licence holder is a corporation – a provisional winding-up order has been made in respect of it, a receiver has been appointed to it, or it has resolved to wind itself up voluntarily;
(6)the Commissioner was of the opinion that circumstances exist by reason of which the licence holder is not fit to serve as a holder of a pension counsellor licence or a holder of a pension marketing agent licence, having regard to the requirements of the profession, and if the licence holder is a corporation – that such circumstances exist in relation to an office holder therein or to a person who controls it.
(b)Revocation of a licence, suspension thereof or imposition of conditions thereon under subsection (a) shall be effected after the licence holder has been given an opportunity to state arguments, and in respect of paragraphs (4) or (6) – after consultation with the Committee and after the licence holder has been given an opportunity to state arguments before it.
(c)A pension counsellor or pension marketing agent who has ceased to engage in the occupation that is the subject of the licence may request the Commissioner, in writing, that the licence be revoked or suspended for a period to be requested.
(d)Where an indictment has been filed against a pension counsellor or against a pension marketing agent in respect of an offence, or an application has been filed for a declaration of the counsellor's or agent's legal incompetence or for a declaration of bankruptcy, and if the licence holder is a corporation – an application has been filed for a winding-up order or for the appointment of a receiver, the Commissioner may, after having given the counsellor or agent an opportunity to state arguments, suspend the licence until the conclusion of the proceedings.
(e)A person whose licence has been suspended shall not be entitled to engage in pension counselling or pension marketing during the period of suspension.
(f)Notice of the revocation of a pension counsellor licence or a pension marketing agent licence, or of its suspension, shall be published by the Commissioner or by the licence holder, all as the Commissioner shall direct.
(g)A person whose licence has been revoked and the ground for revocation has been remedied may apply to the Commissioner to renew the licence; the provisions of sections 5 to 9 shall apply to the renewal of the licence, with the necessary modifications.
Engagement in Pension Counselling by a Banking Corporation§
11.
(a)The Commissioner shall not grant a pension counsellor licence to a banking corporation, even if it is entitled to receive a pension counsellor licence under the provisions of section 5, unless all of the following conditions are also fulfilled:
(1)the banking corporation is of a type of banking corporation permitted to engage in pension counselling under the provisions of the Banking (Licensing) Law;
(2)the banking corporation does not hold more than five per cent of a particular type of means of control in an insurer and does not hold more than ten per cent of a particular type of means of control in another corporation that controls the insurer or in a corporation that holds more than twenty-five per cent of a particular type of means of control in the insurer;
(3)the banking corporation does not hold means of control in a managing company and does not hold more than ten per cent of a particular type of means of control in another corporation that controls a managing company or that holds more than twenty-five per cent of a particular type of means of control therein;
(4)the banking corporation does not hold means of control in a manager of a joint investment fund in trust, as defined in the Joint Investments Law, and does not hold more than ten per cent of a particular type of means of control in another corporation that controls a manager of a joint investment fund in trust or that holds more than twenty-five per cent of a particular type of means of control therein;
(5)the Commissioner was satisfied that granting the said licence would not materially harm the development of competition and the prevention of concentration in Israel, in the field of pension counselling, in the field of intermediation activity between clients and institutional bodies, and in the field of banking.
(b)The Commissioner's decision under subsection (a)(5) shall be made after consultation with the Commissioner of Competition as defined in the Economic Competition Law, 5748-1988, and in respect of considerations concerning the development of competition and the prevention of concentration in the field of banking – also after consultation with the Supervisor of Banks.
(c)Notwithstanding the provisions of subsection (a)(2) to (4), the Commissioner shall be entitled to permit a banking corporation that holds more than ten per cent in another corporation that controls an insurer or a managing company, or in another corporation that holds more than twenty-five per cent of a particular type of means of control in any of the foregoing, to continue to engage in pension counselling for a period and on conditions to be determined, provided that the deviation from the provisions of the said sections was caused solely as a result of acts of the other corporation in which the banking corporation holds means of control.
(d)A banking corporation or a person engaging in pension counselling on its behalf shall not provide pension counselling in respect of a pension product to which an institutional body that holds more than ten per cent of a particular type of means of control in the banking corporation has a nexus; for this purpose, "institutional body" – including a person who controls it, or a person who is controlled by any of them.
(e)Notwithstanding the provisions of any law, a banking corporation or a person engaging in pension counselling on its behalf shall not engage in pension counselling except at a fixed and permanent premises at which the banking corporation lawfully receives monetary deposits as defined in the Banking (Licensing) Law and in respect of which a branch permit has been granted under section 28 of that Law.
(f)A banking corporation shall not control and shall not be an interested party in a corporation that is a pension counsellor and is not a banking corporation.
(g)A banking corporation shall not enter into a contract with a workers' representation in respect of the provision of pension counselling to employees represented by that workers' representation.

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LawCorporate & Business

חוק הפיקוח על שירותים פיננסיים (ייעוץ, שיווק ומערכת סליקה פנסיוניים), תשס"ה-2005

Pension Counselling Law

Pension Marketing Law

Pension Clearing System Law

Financial Services Supervision Law

Pikuach Sherutim Pinansiyim

Pension Advisor Regulation

Pension Services Law 2005

Financial Services Pension Law

Pension Clearing Regulation