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
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Section B: Provisions regarding Control of a Company Operating a Central Pension Clearing System, its Organs and Office Holders, and Equity Capital
Control and holding of means of control in a company operating a central pension clearing system§
31f.
(a)No person shall hold more than five per cent of a particular type of means of control in a company operating a central pension clearing system, except under a permit granted by the Commissioner, and if that person is a user, other than an employer — the Commissioner shall not grant a permit as aforesaid for the holding of more than 15 per cent of a particular type of means of control as aforesaid.
(b)No person shall control a company operating a central pension clearing system except under a permit granted by the Commissioner.
(c)The provisions under Section F of Chapter III of the Insurance Supervision Law that apply in respect of control and means of control in an insurer, other than the provisions under sections 31a, 32(a), (b), (b2), (c1) and (f) and 33a(a)(2), shall apply, with necessary modifications, in respect of control and means of control in a company operating a central pension clearing system, including in respect of a permit granted under subsections (a) or (b).
(d)The Minister, with the approval of the Labour, Welfare and Health Committee of the Knesset, may prescribe reliefs in respect of the application of the provisions referred to in subsection (c) to a company operating a central pension clearing system, by way of prescribing modifications and adjustments to the application of those provisions, in whole or in part, to such a company, or by providing that those provisions, in whole or in part, shall not apply to it.
Organs and other office holders in a company operating a central pension clearing system§
31g.
(a)The provisions under Section A-1 of Chapter IV of the Insurance Supervision Law in respect of organs and other office holders in an insurer, other than sections 41b, 41d and 41e and other than other provisions under that Section relating to an actuary, risk manager or investment committee, shall apply in respect of organs and such office holders in a company operating a central pension clearing system, with necessary modifications and with the following modification: notwithstanding the provisions of section 41i(a) of the Insurance Supervision Law, the Minister may, with the approval of the Labour, Welfare and Health Committee of the Knesset, prescribe that the provisions of that section shall not apply to such office holders or persons in particular occupations as the Minister has prescribed, subject to their compliance with the restrictions prescribed by the Minister as aforesaid in respect of their tenure in the company, to the extent prescribed.
(b)Notwithstanding the provisions of subsection (a), the Minister may, with the approval of the Labour, Welfare and Health Committee of the Knesset, prescribe modifications and adjustments to the application of the Regulations made under the Section referred to in that subsection, in whole or in part, in respect of a company operating a central pension clearing system, or provide that those provisions, in whole or in part, shall not apply to it, and may prescribe in their place other provisions that shall apply in respect of the company.
Minimum equity capital§
31h.
The Minister may prescribe the minimum equity capital required of a company operating a central pension clearing system.
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Contact Us →Section C: Use of a Central Pension Clearing System, its Mode of Operation and Payments
Use of a Central Pension Clearing System§
31i.
(a)A central pension clearing system shall serve all of the following purposes, in respect of a pension product or in respect of an insurance plan, and for those purposes only:
(1)the transfer of information about customers, at their request, from all institutional bodies to any pension counsellor or pension agent, for the purpose of conducting pension counselling or pension marketing;
(2)the provision of information to customers pursuant to subsection (c); the provision of such information shall commence upon the expiry of 12 months from the date on which the transfer of information pursuant to paragraph (1) first commenced, by any system, unless the Commissioner has directed an earlier date;
(3)the performance of at least one of the operations set out in subsection (d) or (e), provided that operations set out in subsection (e) shall not commence until the expiry of 12 months from the date on which the transfer of information pursuant to paragraph (1) first commenced, by any system.
(b)Notwithstanding the provisions of subsection (a), a pension clearing system may serve to perform the operations set out in subsection (e), in whole or in part, without serving to perform the other operations referred to in subsection (a), provided that it shall not commence the performance of such operations until the expiry of 12 months from the date on which the transfer of information pursuant to subsection (a)(1) first commenced, by any system.
(c)A central pension clearing system shall provide a customer, upon request, with information relating to that customer in respect of a pension product or an insurance plan, from all institutional bodies; nothing in the provisions of this subsection shall derogate from the right of a customer to receive information relating to that customer by any other means available to that customer by law.
(d)Subject to the provisions of subsection (a)(3), a central pension clearing system may perform at least one of the following operations:
(1)the transfer of information about a customer, at that customer's request, from a pension counsellor or pension agent to an institutional body, for the purpose of executing a transaction on behalf of the customer;
(2)the transfer of a customer's request to an institutional body for the performance of operations on behalf of the customer;
(3)the transfer of a balance report from an institutional body to an employer, in respect of deposits to the severance pay component that do not take the place of severance pay under section 14 of the Severance Pay Law, 5723-1963, and with reference to the period of the employer's liability;
(4)the transfer of information other than that referred to in paragraphs (1) to (3), as determined by the Minister with the approval of the Labour, Welfare and Health Committee of the Knesset, provided that such transfer is made at the request of a customer, in connection with an occupation that is subject to supervision by the Commissioner under any law;
(5)the transfer of control feedback between the users of the system in respect of operations performed as referred to in this subsection or in subsection (a)(1), or the transfer of control feedback in respect of an operation performed as referred to in subsection (a)(2).
(e)Subject to the provisions of subsection (a)(3) or (b), a central pension clearing system may perform at least one of the following operations:
(1)the transfer of funds between different institutional bodies pursuant to section 23 of the Provident Funds Supervision Law, and the transfer of information between those bodies in connection with such transfer of funds, in accordance with the provisions of that section, as well as the transfer of information between institutional bodies pursuant to the provisions of section 24b(a) of the Provident Funds Supervision Law, for the purpose of locating funds registered in the name of a non-depositing member, as defined in section 24b(c) of that Law, in accounts in a pension fund and transferring them to the pension fund that the member joined; the Commissioner may, with the approval of the Labour, Welfare and Health Committee of the Knesset, direct the commencement of the performance of an operation referred to in this paragraph, even if 12 months have not yet elapsed as referred to in subsection (a)(3) or (b), as the case may be;
(2)the deposit of funds on behalf of a customer with an institutional body, and the transfer of information in connection with such deposit, by a pension counsellor, pension agent or employer;
(3)the transfer of funds other than that referred to in paragraphs (1) or (2), as determined by the Minister with the approval of the Labour, Welfare and Health Committee of the Knesset, provided that such transfer is made at the request of a customer, in connection with an occupation that is subject to supervision by the Commissioner under any law;
(4)the transfer of control feedback between the users of the system in respect of operations performed as referred to in this subsection.
(f)The Commissioner may give directions regarding the types of information that may be transferred pursuant to the provisions of subsections (a) to (e), and shall give directions regarding the transfer of the information referred to in subsection (c), having regard to the fact that the information is intended for the customer.
(g)In this section, "insurance plan" – any of the following, provided that in respect of an insurance plan referred to in paragraph (2), only information regarding the very existence of an insurance plan and its validity shall be transferred:
(1)an insurance plan against the risk of death or against the risk of loss of work capacity, in respect of which the Commissioner has granted a permit pursuant to the provisions of section 40(b) of the Insurance Supervision Law, which was purchased for the benefit of a customer;
(2)an insurance plan against the risk of accidental death, accidental disability, occupational disability, general disability, waiver of premium upon loss of work capacity, monthly compensation upon loss of work capacity, insurance in the event of the death of a spouse, critical or terminal illness, or other health or nursing insurance, or another insurance plan directed by the Commissioner, all provided that the plan was included in a pension product, and excluding an insurance plan in which the sole beneficiary is a business entity, concluded in connection with the purchase of a product from that entity.
Responsibility of a Company Operating a Central Pension Clearing System§
31j.
A company operating a central pension clearing system shall be responsible for the fulfilment of the conditions and requirements applicable to the system pursuant to the provisions of this Chapter, including, inter alia –
(1)it shall formulate rules that ensure the stability, efficiency and proper functioning of the central pension clearing system and the quality of service provided to its users, including the means for the enforcement of those rules (in this Chapter – the system rules), and shall act in accordance with those rules;
(2)it shall ensure the existence of means for the security of information transferred through the central pension clearing system and for the management of risks that exist or may exist in the system, for the prevention thereof, to the extent possible, or for their limitation;
(3)it shall formulate backup arrangements and a plan for the continuity and uninterrupted nature of the service provided by means of the central pension clearing system, and shall operate those arrangements as necessary.
Duty to Provide Service by means of a Central Pension Clearing System§
31k.
(a)A company operating a central pension clearing system shall enable every institutional body, pension counsellor, pension agent, employer or other company operating a central pension clearing system, as well as every customer, to perform the operations that they are authorised to perform in accordance with the provisions of section 31i.
(b)Notwithstanding the provisions of subsection (a), the Commissioner may exempt a company operating a central pension clearing system from providing service to a particular user, after that user has been given an opportunity to state their arguments and for reasons that shall be recorded, and the Commissioner may exempt such a company from providing service to a customer in circumstances that the Commissioner shall direct.
Imposition of an Obligation to Use a Central Pension Clearing System§
31l.
(a)The Commissioner may require an institutional body, pension counsellor, pension agent or other company operating a central pension clearing system to receive and transmit information or funds by means of a central pension clearing system as referred to in section 31i, in the manner that the Commissioner shall direct.
(b)Notwithstanding the provisions of subsection (a), the Commissioner shall not require a pension counsellor or pension agent to perform operations as referred to in section 31i(d)(1) or (e)(2) except with the approval of the Labour, Welfare and Health Committee of the Knesset.
(c)Where the Commissioner has required a party to use a central pension clearing system as referred to in subsection (a) or (b), that party shall perform all actions necessary for the purpose of connecting to the central pension clearing system and using it, in accordance with the system rules.
Duty of Loyalty and Care§
31m.
(a)In operating a central pension clearing system, in providing service to its users and customers, and in the fulfilment of its other functions pursuant to the provisions of this Chapter, the company shall act with care, in good faith and with diligence for the benefit of each of the users and customers, shall not prefer any interest or consideration over their benefit, and shall not discriminate between users or between customers.
(b)The provisions of this section shall apply to every person engaged on behalf of the company in operating the central pension clearing system.
Payments for Operations in a Central Pension Clearing System§
31n.
(a)
(1)The Commissioner may give directions to any company operating a central pension clearing system regarding the usage fees that the company is permitted to collect from users of the system for using it, regarding the payment for connecting to the system, and regarding the payment arrangements and dates of payment, including the collection of payments at different rates for different operations;
(2)the Minister, with the approval of the Labour, Welfare and Health Committee of the Knesset, may prescribe the maximum rate of usage fees referred to in paragraph (1).
(b)The Minister shall prescribe, with the approval of the Labour, Welfare and Health Committee of the Knesset, the maximum amount to be collected from a customer for an operation of providing information as referred to in section 31i(c), and may prescribe payments at different rates for different types of information.
(c)The Commissioner may give directions regarding the payment that may be collected from the customer for the provision of data upon the customer's request as referred to in section 31p(c)(3), and the Minister may, with the approval of the Labour, Welfare and Health Committee, prescribe a maximum amount that may be collected as aforesaid.
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Contact Us →Section D: Confidentiality and Information Security
Duty of Confidentiality§
31o.
A company operating a central pension clearing system and every person acting on its behalf shall keep confidential any information that came to their knowledge through the central pension clearing system, shall not disclose it to another person and shall not make any use of it, except pursuant to the provisions of this Law or any other law, or pursuant to an order of a court.
Provisions Regarding Information Security, Storage and Accessibility§
31p.
(a)The technological system that serves the central pension clearing system shall minimise, to the extent possible and having regard to accepted technological alternatives, the risk of harm to the privacy of customers.
(b)
(1)In this section –
"metadata" – data that record the use of the clearing house as directed by the Commissioner, after consultation with the Head of the Privacy Protection Authority, including details of the times of requesting and providing information, the identity of those requesting and receiving the information, the identity of those providing the information, the customer to whom the information relates, the subject matters of the information transferred and its integrity;
"audit period" – a period prescribed by the Minister pursuant to the provisions of subsection (d), which shall not exceed 30 days;
(2)information transferred by means of a central pension clearing system shall be retained by the company operating the system, at the time of its transfer and during the audit period following the transfer, in accordance with directions pursuant to subsection (d), in a manner that ensures protection against the use, corruption, disclosure or copying of the information without lawful authorisation, prevents its use contrary to the provisions pursuant to this Chapter, and ensures that access to the information is only in accordance with the provisions pursuant to subsection (c);
(3)metadata in respect of information transferred by means of the clearing system as well as data in respect of funds transferred through the system shall be recorded and retained by the company operating the system, at the time of the transfer of the information or funds and also after their transfer, in accordance with directions pursuant to subsection (d), in a manner that ensures protection against the corruption of the data or the information and against their use contrary to the provisions pursuant to this Chapter.
(c)Information transferred by means of a central pension clearing system, metadata and data in respect of funds transferred through the system shall be accessible only in accordance with the following provisions –
(1)during a period prescribed by the Minister pursuant to the provisions of subsection (d), the information shall be accessible to the user or customer to whom the information is addressed, until its delivery to that user or customer and for the purpose for which it was transferred; during that period and during the audit period following it, the information shall be accessible to a person who has received specific prior written authorisation from the Commissioner to access the information, for the purpose of resolving disputes that have arisen between users of the system or between a customer and a user, for the purpose of the Commissioner's supervision pursuant to the provisions of this Chapter, or for the purpose of monitoring the operation of the system;
(2)metadata and data in respect of funds transferred through the system shall be accessible for the purpose of resolving disputes that have arisen between users of the system or between a customer and a user, for the purpose of providing information to a customer pursuant to paragraph (3), or for the purpose of the Commissioner's supervision pursuant to the provisions of this Chapter;
(3)the company shall provide a customer, upon request, with metadata in respect of information transferred pursuant to requests to receive information relating to that customer.
(d)The Minister, after consultation with the Minister of Justice, shall prescribe provisions in respect of the following matters:
(1)the manner of access to information transferred in a central pension clearing system, including the identification means required of a user of the system or of a person acting on behalf of a user, for the purpose of accessing the system, including the performance of operations therein, the manner of verifying the existence of a request from the customer or of a power of attorney, or the existence of a duty to locate funds as referred to in section 31i(e)(1), and the period during which the information in the system shall be accessible to a user or customer, as well as provisions regarding the manner of access for the purpose of monitoring the operation of the system; the Minister may prescribe as aforesaid special provisions regarding the identification means required of a customer for the purpose of accessing the system and provisions regarding the provision of information to the customer as referred to in section 31i(c);
(2)the manner of use of information transferred in the central pension clearing system and its security;
(3)the manner of storage of information transferred in the central pension clearing system, the type of information to be stored, the periods for its storage, the audit period, and the deletion of surplus information upon the expiry of the audit period as aforesaid;
(4)the periods for the storage of metadata;
(5)the manner of storage of data in respect of funds transferred in the central pension clearing system, the type of data to be stored and the periods for their storage;
(6)the manner of collecting and recording data, the nature of their compilation as an institutional record and its production, and the existence of reasonable protective measures against intrusion into computer material and against disruption of the operation of the system, in accordance with the provisions of section 36 of the Evidence Ordinance [New Version], 5731-1971.
Restrictions Regarding Information Transferred in a Central Pension Clearing System§
31q.
(a)The transfer of information by means of a central pension clearing system, access thereto, its use and storage in the system, shall be for the purpose of carrying out the provisions pursuant to sections 31i and 31p, and to the extent required for that purpose only; these provisions shall also apply in respect of metadata as defined in section 31p(b)(1).
(b)A person shall not transfer information or metadata by means of a central pension clearing system, shall not access them without access rights, and shall not use them or store them in the system, except for the purpose of carrying out the provisions pursuant to sections 31i and 31p and to the extent required for that purpose.
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