Financial Services Supervision Law (Regulated Financial Services), 5776-2016

In this Law –

"association" – a registered association as defined in the Co-operative Societies Ordinance;

"means of control", in a corporation – a right that is one of the following:

"person of influence", in a financial service provider that is an individual – a person who is capable of directing the activities of the financial service provider, directly or indirectly, except for a capability arising solely from the performance of the function of an office holder in the financial service provider; for this purpose, a person who finances more than 50% of the volume of activity of the financial service provider, or a lower percentage determined by the Minister, shall be deemed a person of influence in that provider;

"interested party", in a financial service provider – any of the following:

"director" or "board of directors" – a director or board of directors in a company, a member of a committee or a committee in an association, and any office holder or body performing a function equivalent or similar to the said function, even if the title is different;

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

"equity capital" –

"holding" or "acquisition" – whether alone or together with others, whether directly or indirectly, including through an agent or trustee or through a controlled corporation; for the purposes of this definition, "together with others" – together with others in permanent cooperation; without derogating from the generality of the foregoing, the following shall be deemed to cooperate permanently: in respect of an individual – that individual, his relative and a corporation controlled by either of them; and in respect of a corporation – that corporation, the person who controls it and a corporation controlled by either of them;

"extensive scope of activity" – (Repealed)

"the Committee" – the Advisory Committee appointed pursuant to section 6;

"stock exchange member" – a person who is a member of the stock exchange in accordance with the stock exchange's articles, within the meaning of section 46 of the Securities Law, excluding a banking corporation;

"Anti-Money Laundering Law" – the Prohibition of Money Laundering Law, 5760-2000;

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

"Payment Services Regulation Law" – the Regulation of the Engagement in Payment Services and Payment Initiation Law, 5783-2023;

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

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

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

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

"Penal Law" – the Penal Law, 5737-1977;

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

"the Supervisor" – within the meaning of section 2;

"Supervisor of Banks" – a person appointed pursuant to section 5 of the Banking Ordinance, 1941;

"provision of credit" – (Repealed)

"office holder", in a financial service provider –

"financial service provider" – the holder of a licence for the provision of financial services;

"financial asset" – (Repealed)

"credit portfolio" – (Repealed)

"relative", of a person – a spouse, parent, grandparent, son or daughter and their spouses, brother or sister and their children, brother-in-law, sister-in-law, uncle or aunt and their children, father-in-law, mother-in-law (paternal), father-in-law, mother-in-law (maternal), son-in-law, daughter-in-law, grandson or granddaughter, including step-relatives, and also any person dependent on that person;

"licence" – (Repealed)

"basic licence" and "extended licence" – as defined in sections 11a, 25a or 25q, as the case may be;

"issuance licence" – (Repealed)

"licence for the operation of a credit intermediation system" – as defined in section 25q;

"licence for the provision of credit" and "licence for the provision of a service in a financial asset" – as defined in section 11a;

"licence for the provision of deposit and credit services" – as defined in section 25a;

"licence for the provision of financial services" – any of the following:

"the Registrar" – the Registrar of Co-operative Societies as defined in the Co-operative Societies Ordinance;

"service in a financial asset" – (Repealed)

"financial service" – any of the following:

"control" – the ability, whether alone or together with others, to direct the activities of a corporation, except for an ability arising solely from the performance of the function of a director or other office holder in the corporation; without derogating from the generality of the foregoing, a person shall be deemed to control a corporation if any of the following applies:

for the purposes of this definition, "together with others" – together with others in permanent cooperation; without derogating from the generality of the foregoing, the following shall be deemed to cooperate permanently: in respect of an individual – that individual, his relative and a corporation controlled by either of them; and in respect of a corporation – that corporation, the person who controls it and a corporation controlled by either of them;

"banking corporation" and "ancillary corporation" – as defined in the Banking Law (Licensing);

"the Minister" – the Minister of Finance.

In performing his functions and exercising his powers under law, including the issuance of directives pursuant to section 4, the Supervisor shall take into account, inter alia, the following matters:

The existence of the Committee, its powers and the validity of its decisions shall not be affected by reason of a vacancy among its members or by reason of a defect in the appointment or continued service of a member.