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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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.
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Chapter VII: Penalties
Rate of the basic fine§
37.
In this Chapter, "the basic fine" – an amount as set out below, as the case may be:
(1)in respect of an individual who is a licence holder – the amount prescribed in section 61(a)(4) of the Penal Law;
(2)in respect of an individual who is not a licence holder – twice the amount prescribed in section 61(a)(4) of the Penal Law;
(3)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 – eight times the amount prescribed in section 61(a)(4) of the Penal Law;
(4)in respect of an institutional body, a banking corporation and a company operating a central pension clearing system – sixteen times the amount prescribed in section 61(a)(4) of the Penal Law.
Penalties§
38.
(a)A person who did one of the following is liable to one year's imprisonment or the basic fine:
(1)did not fulfil a condition of the conditions set in a pension counsellor's licence, contrary to the provisions of section 2, or did not fulfil a condition of the conditions set in a pension marketing agent's licence, contrary to the provisions of section 3(a)(2);
(2)did not disclose to the client a matter prescribed pursuant to paragraphs (1) or (2) of section 21(a) as being material in respect of a licence holder who is a pension agent, or disclosed such a matter otherwise than in the manner prescribed in those paragraphs, or did not disclose to the client a matter that the Commissioner prescribed pursuant to the provisions of section 21(b) as being material to the pension counselling, the pension marketing or the transaction;
(3)breached the duty of confidentiality, contrary to the provisions of section 22;
(4)determined the calculation of the fee and reimbursement of expenses to be charged to a client in respect of pension counselling, or the distribution commission to be charged to an institutional body, with dependence on the identity of the institutional body or the type of pension product, or collected from the client a fee and reimbursement of expenses as part of management fees or reimbursement of expenses to the institutional body, or collected from an institutional body a distribution commission that is not part of the management fees, all contrary to the provisions of section 28(a);
(5)collected a fee and reimbursement of expenses from a client calculated as a proportion of the amounts transferred or accumulated in savings by means of the pension product, or a distribution commission from an institutional body, other than during the pension counselling period prescribed in the pension counselling agreement, contrary to the provisions of section 28(b);
(6)collected a distribution commission calculated as a proportion of the management fees collected by an institutional body, contrary to the provisions of section 28(c);
(7)did not notify the client of a benefit he receives in respect of insurance brokerage, during the period in which he was required to do so, contrary to the provisions of section 49(b).
(8)used the word combination "pension clearing system" or "pension clearing house" or a combination of derivatives of these words, in the name under which he conducts his business or in a publication on his behalf, without a permit from the Commissioner, and is not a company operating a central pension clearing system, contrary to the provisions of section 42a.
(b)A person who commits any of the following shall be liable to two years' imprisonment or a fine of one and a half times the basic fine:
(1)engaged in pension counselling without holding a pension counsellor's licence, contrary to the provisions of section 2(a), or engaged in pension counselling while his licence was suspended, contrary to the provisions of section 10(e);
(2)engaged in pension marketing, and is not one of those listed in paragraphs (1) to (3) of section 3(a), or engaged in pension marketing otherwise than in accordance with the conditions set out in those paragraphs or contrary to the provisions of section 3(b);
(3)engaged in pension counselling in respect of a pension product to which an institutional body that holds more than ten percent of a particular class of means of control in the counsellor or in his employer has a nexus, contrary to the provisions of section 11(d);
(4)engaged in pension counselling as a banking corporation or on its behalf otherwise than in the structure referred to in section 11(e);
(5)controlled, as a banking corporation, a pension counsellor, or held an interest in him, contrary to the provisions of section 11(f);
(6)entered into an agreement, as a banking corporation or on its behalf, with a workers' committee that is not a workers' organisation, in respect of the provision of pension counselling, contrary to the provisions of section 11(g);
(7)executed a transaction on behalf of a client otherwise than as part of pension counselling or pension marketing and in continuation thereof, or executed a transaction as aforesaid the execution of which entails ongoing actions in savings by means of the pension product, contrary to the provisions of section 13;
(8)failed to notify a client of the existence of a conflict of interests between himself or the corporation in which he is employed or is a partner and the client, or performed an act involving a conflict of interests, contrary to the provisions of section 17(a);
(9)entered into an exceptional agreement with an institutional body without having received approval therefor, contrary to the provisions of section 18 or contrary to the provisions of section 52(a)(2);
(10)received a benefit in connection with pension counselling or in connection with the execution of a transaction on behalf of a client, contrary to the provisions of section 19(a) and (b);
(11)gave a benefit to an employee of a pension counsellor, to one of its branches or to one of its units, determined with regard to the type of pension product in respect of which pension counselling was given or with regard to the identity of an institutional body that has a nexus to a pension product in respect of which pension counselling was given, contrary to the provisions of section 19(c);
(12)gave a pension counsellor a benefit in connection with pension counselling or in connection with the execution of a transaction, contrary to the provisions of section 19(d);
(12a)received a benefit in connection with pension marketing or in connection with the execution of a transaction on behalf of a client, contrary to the provisions of section 19a(a);
(12b)gave a pension insurance agent a benefit in connection with pension marketing or in connection with the execution of a transaction, contrary to the provisions of section 19a(c);
(13)entered into an agreement with an employer or with an employers' organisation in respect of the provision of pension counselling to an employee of that employer or to an employee of a person who is a member of, or is represented by, the employers' organisation, contrary to the provisions of section 20(a);
(14)as a pension counsellor, was a party to an insurance made for a group of persons who are not his employees, or entered into an agreement in respect of such insurance, contrary to the provisions of section 20(b);
(15)a pension agent who used the word "counselling" or any word derived therefrom in the name under which he conducts his business or in advertising on his behalf, contrary to the provisions of section 24(a), or used the combination of the words "counselling" and "pension" or the combination of derivatives of those words, in the name under which he conducts his business or in advertising on his behalf, contrary to the provisions of section 24(b);
(16)collected from a client fees and reimbursement of expenses in connection with pension counselling, or collected a distribution commission at rates or amounts exceeding the rates or amounts set by the Minister pursuant to the provisions of section 28(d) or exceeding the rates or amounts prescribed in section 28(c);
(17)failed to notify the Commissioner immediately that a condition of the conditions for the grant of a pension counsellor's licence or for the grant of a pension marketing agent's licence had ceased to be fulfilled in his case, or that a condition had been fulfilled in his case by reason of which the Commissioner is entitled to revoke such a licence, suspend it or attach conditions to it, contrary to the provisions of section 30(a);
(18)failed to notify the client or failed to publish notice of the imposition of the financial sanction or the civil fine, in accordance with the Commissioner's instructions under section 92k of the Insurance Supervision Law, as applied by section 36.
(19)operated a central pension clearing system without a licence, contrary to the provisions of section 31a;
(20)acted contrary to an instruction given to him by the Commissioner in accordance with the provisions of section 23(b) of the Insurance Supervision Law, as applied by section 31e(b), concerning the conduct of his business after the revocation of a licence to operate a central pension clearing system;
(21)held means of control in a company operating a central pension clearing system or controlled such a company without holding a permit, contrary to the provisions of section 31f;
(22)transferred means of control in a company operating a central pension clearing system knowing that the transferee requires a permit and does not hold a permit, contrary to the provisions of section 33 of the Insurance Supervision Law, as applied by section 31f(c);
(23)transferred information or data concerning the information by means of a central pension clearing system, accessed them without access rights, used them or stored them in the system, otherwise than for the purpose of implementing the provisions under sections 31i and 31p, contrary to the provisions of section 31q(b);
(24)failed to remedy a deficiency in accordance with an instruction given by the Commissioner, pursuant to the provisions of section 62(a) of the Insurance Supervision Law, as applied by section 31r(c);
(25)failed to comply with an instruction given by the Commissioner to remedy a defect or to prevent harm pursuant to the provisions of section 65 of the Insurance Supervision Law, as applied by section 31r(c);
(26)contravened an instruction given by the Commissioner pursuant to the provisions of sections 67 or 68 of the Insurance Supervision Law, as applied by section 31r(c);
(27)served as an office holder or other employee in a company operating a central pension clearing system even though his authority had been suspended or restricted pursuant to the provisions of section 68 of the Insurance Supervision Law, as applied by section 31r(c), or served as an office holder in such a company even though he had been suspended or removed from his position pursuant to the provisions of that section;
(28)included a misleading particular in a report or notice, contrary to the provisions of section 42a of the Insurance Supervision Law, as applied by section 31s, or gave his consent for a report or document he had prepared to be included in a report or notice as aforesaid, knowing that they contain a misleading particular.
Offence with Intent to Mislead or Deceive§
39.
A person who commits an offence from among those listed in section 38 with intent to deceive or mislead a client shall be liable to five years' imprisonment or a fine of three times the fine prescribed for that offence.
Fine for a Continuing Offence§
40.
In the case of a continuing offence, the court may impose, for each day on which the offence continues, in addition to any other penalty, a fine at the rate of one-fiftieth of the fine it is entitled to impose for that offence.
Duty of Supervision§
41.
(a)An office holder in a corporation is obliged to supervise and do all that is possible to prevent an offence under section 38 from being committed by the corporation or by any of its employees; a person who contravenes this provision shall be liable to the fine prescribed for that offence if imposed on an individual.
(b)Where an offence under section 38 has been committed by a corporation or by any of its employees, it shall be presumed that an office holder in the corporation has contravened his duty referred to in subsection (a), unless he proves that he did all that was possible to prevent the offence.
(c)In this section, "office holder" means an active manager in a corporation, a partner, excluding a limited partner, or an officer responsible on behalf of the corporation for the field in which the offence was committed.
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Contact Us →Chapter VIII: Miscellaneous Provisions
Fees§
42.
(a)The Minister may prescribe, with the approval of the Finance Committee of the Knesset, fees as set out below, as well as provisions in respect of such fees, including the times for their payment:
(1)a fee for the submission of an application for a pension counsellor's licence or for a pension marketing agent's licence;
(2)an annual fee for a pension counsellor and for a pension marketing agent.
(3)a fee for the submission of an application for a licence to operate a central pension clearing system;
(4)an annual fee for a company operating a central pension clearing system.
(b)In Regulations made under subsection (a), the Minister may prescribe provisions concerning linkage differentials and interest and an increased fee, to be paid in respect of arrears in the payment of a fee under those Regulations (in this section – a fee supplement).
(c)The Tax Collection Ordinance shall apply to the collection of a fee and a fee supplement under this section.
(d)Where a pension counsellor, a pension marketing agent or a company operating a central pension clearing system has failed to pay a fee that they were required to pay under the provisions of subsection (a) within one year of the time prescribed for its payment under the provisions of that subsection, their licence shall be suspended from the time prescribed therefor in a warning given to them by the Commissioner, until payment of the fee and the fee supplement; a pension counsellor or pension marketing agent whose licence has been suspended shall immediately notify his clients thereof; a company operating a central pension clearing system whose licence has been suspended shall immediately notify the users of the system thereof; where the licence of a company operating a central pension clearing system has been suspended, the Commissioner may, during the period of suspension, act in accordance with his powers as referred to in section 68 of the Insurance Supervision Law, as applied by section 31r(c).
(e)The renewal of a pension counsellor's licence, a pension marketing agent's licence or a licence to operate a central pension clearing system that has expired, been revoked or been suspended shall be conditional upon the payment of the debts of the licence holder or the company operating a central pension clearing system, as the case may be, in respect of fees and fee supplements that have not been paid by them.
Restriction on Use of the Combination of Words "Pension Clearing System" or "Pension Clearinghouse"§
42a.
(a)No person, other than a company operating a central pension clearing system, shall use the combination of words "pension clearing system" or "pension clearinghouse" or the combination of derivatives of those words, in the name under which he conducts his business or in advertising on his behalf, except under a permit from the Commissioner.
(b)The Commissioner may instruct any person, after consultation with the Committee and after that person has been given an opportunity to present his arguments before the Committee, to delete, within a time prescribed by the Commissioner, from the name under which he conducts his business, the combination of words "pension clearing system" or "pension clearinghouse" or any combination derived therefrom.
Publication of Commissioner's Instructions§
43.
(a)Instructions of the Commissioner given by virtue of this Law, other than instructions under sections 21(b), 31i and 31l, are not required to be published in Reshumot (Official Gazette); however, the Commissioner shall publish in Reshumot (Official Gazette) a notice of the giving of instructions as aforesaid that are of legislative effect, and of the date of their commencement.
(b)Instructions of the Commissioner given by virtue of this Law that are of legislative effect, and any amendment thereto, shall be made available for public inspection at the offices of the Commissioner and shall be published on the website of the Ministry of Finance, and the Minister may prescribe additional means of publishing them.
Implementation and Regulations§
44.
The Minister is charged with the implementation of this Law and may make Regulations on any matter relating to its implementation.
Amendment of the Income Tax Ordinance – No. 149§
45.
In the Income Tax Ordinance [New Version], after section 47b the following shall be inserted:
"Fees and reimbursement of expenses paid to a pension counsellor as payments to a provident fund
47c.§
(a)The Minister of Finance may prescribe conditions upon the fulfilment of which fees and reimbursement of expenses paid to a pension counsellor shall be treated, for the purposes of sections 3(e3), 17(5a), 45a and 47, as payments made to a provident fund; where the Minister of Finance has so prescribed, the conditions, ceilings and restrictions prescribed in those sections shall apply, with the necessary modifications, to fees and reimbursement of expenses paid as aforesaid.
(b)In this section, "pension counsellor" – as defined in the Financial Services Supervision Law (Pension Counselling, Marketing and Clearing System), 5765-2005."
46. In the Administrative Courts Law, 5760-2000, in the First Schedule, in item (21), after paragraph (2) the following shall be inserted:
"(2a) A decision of the Commissioner under sections 5, 6, 9(a) and (c), and 10(a) and (d) of the Financial Services Supervision Law (Pension Counselling, Marketing and Clearing System), 5765-2005.".
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