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 E: Supervision of the Activity of a Company Operating a Central Pension Clearing System
Supervision by the Commissioner§
31r.
(a)In the fulfilment of its functions and duties pursuant to this Law, a company operating a central pension clearing system shall be subject to the supervision of the Commissioner.
(b)The Commissioner may, for the purpose of supervision as referred to in subsection (a) –
(1)give directions relating to the modes of operation and management of a company operating a central pension clearing system, of office holders therein and of every person employed by it, all in order to ensure the proper management and efficiency of the company, the quality of the service provided by it and the protection of the interests of the users of the system and the customers, in order to prevent harm to the ability of the company to fulfil its obligations, and in order to support the stability of the financial system and its orderly operation; such directions may be given in relation to all companies operating a central pension clearing system or in relation to a particular class of such companies;
(2)give directions regarding the manner of use of a central pension clearing system by the users of the system and by the customers; such directions in relation to users may be given in relation to all users or in relation to a particular class of users.
(c)The provisions of sections 50 to 50c, 60 to 62, 65, 67 to 78 and 97 of the Insurance Supervision Law, and the provisions of section 102 of that Law in relation to a decision pursuant to section 62(a) of that Law, shall apply in respect of a company operating a central pension clearing system, with the necessary modifications.
Reports, Notices and Information§
31s.
The provisions of sections 42, 42a and 48a of the Insurance Supervision Law shall apply in respect of a company operating a central pension clearing system, with the necessary modifications; the Commissioner may direct reliefs in respect of the application of the provisions of those sections 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 prescribing that those provisions, in whole or in part, shall not apply to it.
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Contact Us →Chapter VI: Financial Sanction and Civil Fine
Financial sanction§
32.
(a)In this section, "the basic amount" – an amount as set out below, as the case may be:
(1)in respect of an institutional body, a banking corporation and a company operating a central pension clearing system – NIS 207,630;
(2)in respect of a corporation that is not an institutional body, is not a banking corporation and is not a company operating a central pension clearing system – NIS 103,820;
(3)in respect of an individual who is not a licence holder – NIS 34,610;
(4)in respect of an individual who is a licence holder – NIS 17,300.
(b)If the Commissioner has reasonable grounds to assume that a pension counsellor or a pension marketing agent did not submit to the Commissioner a report pursuant to section 30(b), or that a licence holder or an office holder therein did not comply with a requirement issued to him pursuant to the provisions of section 50 of the Insurance Supervision Law, as applied under section 31(c), he may impose upon him a financial sanction at a rate of three percent of the basic amount for each day on which the breach continues.
(b1)If the Commissioner has reasonable grounds to assume that a company operating a central pension clearing system or an office holder therein did not comply with a requirement issued to them pursuant to the provisions of sections 50 or 73 of the Insurance Supervision Law, as applied under section 31r(c), or did not submit to the Commissioner reports and notices pursuant to the provisions of section 42 of that Law as applied under section 31s, he may impose upon them a financial sanction at a rate of three percent of the basic amount for each day on which the breach continues.
(c)If the Commissioner has reasonable grounds to assume that a licence holder did one of the following, he may impose upon him a financial sanction in the basic amount:
(1)did not transmit to the client a written document setting out the reasons for his recommendation, contrary to the provisions of section 14;
(2)published notice of his engagement in the provision of pension counselling in relation to pension products to which a particular institutional body has a nexus, contrary to the provisions of section 23;
(3)did not conclude a pension counselling agreement in writing with a client prior to the commencement of the provision of pension counselling, contrary to the provisions of section 27(a), did not include in such an agreement the particulars listed in section 27(b)(1) to (8), did not conclude the agreement in accordance with the instructions issued pursuant to section 27(c), or did not update the client's particulars contrary to the provisions of section 27(d);
(4)did not maintain records of a pension counselling transaction, a pension marketing transaction or the execution of a transaction on behalf of a client, or did not retain such records, contrary to the provisions of section 29(a) or contrary to the Commissioner's instructions pursuant to section 29(b).
(d)If the Commissioner has reasonable grounds to assume that a licence holder, an office holder therein or a person employed by him breached an instruction of the Commissioner's instructions issued pursuant to section 31(b), he may impose upon him a financial sanction in the basic amount.
(d1)If the Commissioner has reasonable grounds to assume that an institutional body did one of the following, he may impose upon it a financial sanction in the basic amount:
(1)refused to enter into an agreement with a pension counsellor for the execution of a transaction in the circumstances referred to in paragraphs (1) or (2) of the definition of "unreasonable refusal" to enter into an agreement with a pension counsellor for the execution of a transaction, in section 28a(c), or terminated an engagement under such an agreement in the circumstances referred to in those paragraphs;
(2)refused to enter into an agreement with a pension counsellor for the execution of a transaction in the circumstances prescribed by the Minister pursuant to paragraph (3) of the definition of "unreasonable refusal" to enter into an agreement with a pension counsellor for the execution of a transaction, in section 28a(c), or terminated an engagement under such an agreement in those circumstances;
(3)discriminated between licence holders contrary to the Commissioner's instructions pursuant to section 28b(b).
(e)If the Commissioner has reasonable grounds to assume that a company operating a central pension clearing system did one of the following, he may impose upon it a financial sanction in the basic amount:
(1)did not fulfil a condition of the conditions set in the licence to operate a central pension clearing system, contrary to the provisions of section 31a;
(2)did not appoint an organ, an office holder or another position holder in the company operating a central pension clearing system, in accordance with the instructions pursuant to Section A-1 of Chapter IV of the Insurance Supervision Law, as applied under section 31g, or appointed an organ, an office holder or a position holder as aforesaid otherwise than in accordance with those instructions;
(3)breached an instruction of the instructions prescribed by the Minister or issued by the Commissioner pursuant to Section A-1 of Chapter IV of the Insurance Supervision Law, as applied under section 31g, or issued by the Commissioner pursuant to section 31r(b);
(4)did not hold the minimum equity capital prescribed pursuant to section 31h;
(5)did not act to fulfil the conditions and requirements applicable to the system, contrary to the provisions of section 31j;
(6)did not enable an institutional body, a pension counsellor, a pension agent, an employer, another company operating a central pension clearing system or a client, to perform through the central pension clearing system transactions for which they are authorised in accordance with the provisions of section 31i, contrary to the provisions of section 31k;
(7)collected usage fees from a user otherwise than in accordance with the instructions pursuant to section 31n(a), or collected payments from a client otherwise than in accordance with the instructions pursuant to section 31n(b) or (c), as the case may be;
(8)did not include in the minutes of the general meeting of a company operating a central pension clearing system the particulars required pursuant to the provisions of section 48a(a) of the Insurance Supervision Law, as applied under section 31s.
(f)If the Commissioner has reasonable grounds to assume that a person served as an office holder or as another position holder in a company operating a central pension clearing system, or acted in the framework of such a role, contrary to the instructions pursuant to Section A-1 of Chapter IV of the Insurance Supervision Law, as applied under section 31g, he may impose upon him a financial sanction in the basic amount.
(g)If the Commissioner has reasonable grounds to assume that a person did one of the following, he may impose upon him a financial sanction in the basic amount:
(1)did not report the holding of means of control pursuant to the provisions of section 34a of the Insurance Supervision Law, as applied under section 31f(c), even though a duty to report as aforesaid applied to him;
(2)breached a condition in a permit issued to him pursuant to section 31f, contrary to the provisions of that section;
(3)was present at or voted in a general meeting of a company operating a central pension clearing system and did not provide the Commissioner with particulars, upon his demand, in accordance with the provisions of section 48a(b) of the Insurance Supervision Law, as applied under section 31s.
(h)If the Commissioner has reasonable grounds to assume that a user, other than a user who is an employer, did one of the following, he may impose upon him a financial sanction in the basic amount:
(1)did not receive or transmit information or funds through the central pension clearing system even though the Commissioner obligated him to do so, contrary to the provisions of section 31l(a);
(2)did not carry out all of the actions required for connecting to the central pension clearing system and for using it, pursuant to the system's rules, contrary to the provisions of section 31l(c);
(3)breached an instruction of the Commissioner's instructions issued pursuant to section 31r(b)(2).
Update of financial sanction§
33.
(a)The Commissioner may update the amount of the financial sanction on 1 January of each year, according to the rate of change that occurred in the index, from the last index published before the date of change compared to the index for November 2005; the Commissioner may also round the amount of the financial sanction to the nearest amount that is a multiple of NIS 10.
(b)The Commissioner shall publish, by notice in Reshumot (Official Gazette), the updated amount of the financial sanction.
Civil fine§
34.
(a)If the Commissioner has reasonable grounds to assume that an act or omission was committed in respect of which an offence is prescribed under section 38, he may impose upon the person who committed the act or omission a civil fine at a rate of ten percent of the fine prescribed pursuant to that section.
(b)The Commissioner shall report to the Attorney General, once every six months, on civil fines imposed pursuant to this section in respect of an offence under paragraphs (10) and (12) of section 38(b); the report shall be drawn up in a format and shall include particulars, as the Attorney General shall direct.
Reduced amounts§
35.
(a)The Commissioner may not impose a financial sanction or a civil fine lower than the financial sanction or civil fine prescribed in this Chapter except pursuant to the provisions of subsection (b).
(b)The Minister, with the consent of the Minister of Justice, may prescribe categories of cases, circumstances and considerations by reason of which the Commissioner may impose a financial sanction or a civil fine lower than the sanction or fine prescribed in this Chapter, at rates to be prescribed by him.
Continuing breach and repeated breach§
36.
(a)In the case of a continuing breach, other than a breach as referred to in section 32(b), there shall be added to the financial sanction or to the civil fine prescribed for that breach one-fiftieth thereof for each day on which the breach continues.
(b)In the case of a repeated breach, there shall be added to the financial sanction or to the civil fine that could have been imposed in respect thereof had it been a first breach, an amount equal to one half of such financial sanction or fine; for this purpose, "repeated breach" – a breach of an instruction from among the instructions set out in sections 32 and 38, within two years of a prior breach of the same instruction in respect of which a financial sanction or a civil fine was imposed on the offender or in respect of which he was convicted.
Demand for financial sanction or civil fine and payment thereof§
36a.
A financial sanction or a civil fine shall be paid upon the demand of the Commissioner, within thirty days from the date of its delivery; the demand shall be issued after notice has been given to the person to whom the demand is addressed of the intention to issue it and he has been given an opportunity to state his arguments; such notice shall state that in respect of a continuing breach the offender shall be liable to an additional financial sanction or civil fine pursuant to the provisions of section 36.
Updated amounts of financial sanction and civil fine§
36b.
The financial sanction and the civil fine shall be according to the updated amount on the date of the demand for payment, and if an appeal was filed and the court hearing the appeal ordered a stay of payment – according to the updated amount on the date of the decision on the appeal.
Shekel interest and default interest§
36c.
If a financial sanction or a civil fine was not paid on time, shekel interest and default interest shall be added thereto for the period of the default, until payment, and the provisions of the Interest and Linkage Adjudication Law shall apply, with the necessary modifications.
Collection§
36d.
A financial sanction and a civil fine shall be collected for the State Treasury, and the Tax Ordinance (Collection) shall apply to their collection.
Preservation of criminal liability§
36e.
(a)Payment of a civil fine shall not derogate from a person's criminal liability in respect of a breach.
(b)If an indictment is filed against a person for an offence under this Law, he shall not be liable to pay a civil fine in respect thereof, and if he has paid – the amount paid shall be refunded to him together with shekel interest from the date of payment to the date of refund, and the provisions of the Interest and Linkage Adjudication Law shall apply in respect of such interest, with the necessary modifications.
Publication of imposition of sanction or fine§
36f.
If a financial sanction or a civil fine has been imposed pursuant to this Chapter, the Commissioner may direct the person liable to pay the sanction or fine to notify clients or to publish in a newspaper or in any other manner that he shall direct, the fact of the imposition of the sanction or fine, the name of the person liable to pay, the nature of the breach in respect of which it was imposed and its circumstances, and the amount of the sanction or fine.
Appeal§
36g.
(a)A demand for payment of a financial sanction or a civil fine may be appealed before the Magistrate's Court within thirty days from the date on which the demand was delivered.
(b)The filing of an appeal shall not stay the payment of a financial sanction or a civil fine, unless the Commissioner has agreed thereto or the court has otherwise ordered.
(c)If the appeal is upheld, the amount paid shall be refunded, together with shekel interest from the date of payment to the date of refund, and the provisions of the Interest and Linkage Adjudication Law shall apply in respect of such interest, with the necessary modifications.
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