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

חוק הפיקוח על שירותים פיננסיים (שירותים פיננסיים מוסדרים), תשע"ו-2016

Published: 2016-08-01Consolidated Hebrew text as of 2026-07-26 · Last amended 2026-07-22✓ Amendment status checked against the Knesset legislation record on 2026-09-17
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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 XIV: Miscellaneous Provisions

Confidentiality§

96.

The Supervisor, an employee subordinate to the Supervisor or a person acting on the Supervisor's behalf, and also a member of the Committee, shall not disclose information or a document that came to that person's knowledge in the course of performing that person's function or during the course of that person's work, and shall not make any use thereof except for the purpose of performing that person's function under this Law, for the purpose of criminal proceedings, or pursuant to a court order.

Preservation of Documents§

96a.

The Supervisor may give directives in respect of the preservation of documents by a financial service provider, including in respect of the manner of preservation and the period of preservation, and may give such directives generally or for particular classes of financial service providers.

Publication of Commission and Interest Data§

97.

Notwithstanding the provisions of section 96, the Supervisor may publish data concerning –

(1)the amounts and rates of commissions charged by financial service providers for classes of services, in a manner that will enable the comparison of commissions;
(2)the rates of interest actually charged to customers by each of the holders of licences to provide credit, holders of licences to provide deposit and credit services or holders of licences to operate a credit intermediation system, in respect of providing credit, in a manner that will enable the comparison of interest rates.

Disclosure of Information to a Supervisory Authority in Israel§

98.
(a)Notwithstanding the provisions of section 96 –
(1)the Supervisor may disclose information or show a document to the competent authority within the meaning of section 29 of the Anti-Money Laundering Law, to the Commissioner of Capital Markets, Insurance and Savings, to the Securities Authority within the meaning of section 2 of the Securities Law, to the Registrar, to the Bank of Israel, to the Financial Stability Committee as defined in the Bank of Israel Law, 5770-2010, and to the Supervisor of Banks (in this section – the transferee body), provided that the Supervisor is satisfied that the information or document is sought for the purpose of performing the functions of the transferee body;
(2)where the Supervisor finds that a financial service provider is acting contrary to sections 21 and 22a of the Banking Law (Licensing), the Supervisor shall notify the Supervisor of Banks accordingly;
(3)where the Supervisor finds that the volume of activity of a holder of a licence to provide deposit and credit services constitutes a banking volume of activity as defined in section 25a, the Supervisor shall notify the Supervisor of Banks accordingly.
(b)A person shall not disclose information or show a document that was transmitted to that person pursuant to the provisions of this section.

Disclosure of Information to a Supervisory Authority in a Foreign State§

99.
(a)Notwithstanding the provisions of section 96, the Supervisor may transmit information or a document in the Supervisor's possession to a competent authority in a foreign state whose function is to supervise persons engaged in providing financial services in that state.
(b)The Supervisor shall not transmit information or a document pursuant to the provisions of subsection (a) unless satisfied that all of the following conditions are met:
(1)the information or document is sought for the purpose of performing the functions of the competent authority in supervising persons engaged in providing financial services as referred to in subsection (a);
(2)the competent authority has confirmed that it is subject to a duty of confidentiality similar to the provisions of section 96, or has undertaken not to transmit the information or document to another;
(3)the competent authority has undertaken to use the information or document only for the purpose listed in paragraph (1).
(c)The Supervisor shall not transmit information or a document pursuant to the provisions of this section if it has been determined that their transmission is liable to harm a pending investigation or the security of the State.

Application of the Provisions of the Co-operative Societies Ordinance, the Companies Ordinance and the Companies Law to a Holder of a Licence to Provide Deposit and Credit Services§

99a.
(a)The provisions under the Co-operative Societies Ordinance (in this section – the Ordinance) shall apply to a holder of a licence to provide deposit and credit services (in this section – a deposit and credit association), with the following modifications:
(1)sections 20, 26, 27, 27a, 36, 37, 38, 39, 40, 42 and 44 of the Ordinance shall not apply;
(2)section 5 of the Ordinance shall apply in respect of a deposit and credit association with the necessary modifications and with the following modification: instead of "one fifth of the share capital" read "2.5% of the share capital" and instead of "one fifth of the capital" read "2.5% of the capital";
(3)in respect of section 12 of the Ordinance, the Registrar shall not refuse to register an amendment to the rules of a deposit and credit association if the amendment results from a requirement of the Supervisor;
(4)notwithstanding the provisions of section 16 of the Ordinance, each member of an association shall have one vote in a vote at the general meeting of a deposit and credit association;
(5)the rules of a deposit and credit association in respect of the redemption of shares, including any form of participation in the capital of the association, pursuant to sections 17 and 31 of the Ordinance, shall be subject to the directives of the Supervisor under this Law, provided that the redemption shall not be at an amount higher than the nominal value of the share linked to the Consumer Price Index published by the Central Bureau of Statistics;
(6)the Supervisor may prescribe restrictions in respect of the number of members of a deposit and credit association;
(7)the right of set-off pursuant to section 24 of the Ordinance shall apply only in respect of a member of a deposit and credit association who has the right to redeem a share, including any form of participation in the capital of the association;
(8)the Registrar shall not hold, in respect of a deposit and credit association, the powers pursuant to section 43 of the Ordinance in all matters relating to an investigation into its financial position;
(9)in respect of section 64 of the Ordinance –
(a)regulations under that section in respect of financial reports and the management of financial affairs shall not apply in respect of a deposit and credit association; for this purpose the Registrar may, for the purpose of performing the Registrar's function, receive all the financial reports that the association has submitted to the Supervisor under this Law;
(b)the model regulations under that section, in respect of a deposit and credit association, shall be made with the consent of the Supervisor.
(b)Regulations or directives of the Supervisor under this Law, in respect of a deposit and credit association, that conflict with regulations prescribed under the Ordinance, shall be prescribed in consultation with the Minister of Economy and Industry or with the Registrar, as the case may be; where regulations or directives of the Supervisor under this Law have been prescribed after such consultation, they shall prevail over the conflicting regulations under the Ordinance.
(c)The provisions of the Ordinance in respect of the winding up of an association shall not apply to a deposit and credit association, and the provisions of the Companies Ordinance [New Version], 5743-1983, and the provisions of Chapter III of Part 9 of the Companies Law shall apply to such an association in this respect, with the necessary modifications and with the following modification: a special resolution on voluntary winding up requires a quorum of 75% of the members of the association and shall be passed by a majority of 80% of those participating in the vote.
(d)The provisions of sections 87 to 89 of the Companies Law shall apply, with the necessary modifications, in respect of voting at the general meeting of a deposit and credit association.
(e)Section 345 of the Companies Law shall not apply to a deposit and credit association.

Transfer of an Asset or Liability of a Deposit and Credit Association to a Related Party§

99b.

Notwithstanding the provisions of any law, a deposit and credit association shall not sell or transfer a material asset or a material liability to a related party, except with the approval of the Supervisor; for this purpose, "related party" – a person determined by the Supervisor in directives for this purpose.

Exercise of the Registrar's Powers§

99c.

The powers of the Registrar under any law shall be exercised in respect of a holder of a licence to provide deposit and credit services, after hearing the position of the Supervisor in that regard.

Fees§

100.
(a)The Minister, with the approval of the Finance Committee of the Knesset, may prescribe fees as set out below:
(1)a fee for the submission of an application for a licence or a permit under this Law;
(2)an annual fee for a financial service provider.
(b)In Regulations under subsection (a) the Minister may prescribe the manner of payment of fees and the dates of payment, and may prescribe interest and linkage differentials to be paid on a fee not paid on time.

Prohibition of Transfer§

101.

A licence or permit granted under this Law is not transferable.

Supervisor's Approval for a Merger of a Financial Service Provider§

101a.

A merger of a financial service provider that is a corporation with another corporation requires, in addition to the requirements of any law, also the approval of the Supervisor.

Extension of Time Limits§

102.

The Supervisor may extend, for a class of cases or for a particular case, any time limit prescribed in this Law or in Regulations thereunder, except for a time limit prescribed in sections 70(d) and 89(a).

Implementation and Regulations§

103.

The Minister of Finance is responsible for the implementation of this Law and may make Regulations on any matter relating to its implementation.

Amendment of Schedules§

103a.
(a)The Minister, with the approval of the Finance Committee of the Knesset, may, by Order, amend the First Schedule.
(b)The Minister, with the consent of the Minister of Justice and the approval of the Economy Committee of the Knesset, may, by Order, prescribe in the Second Schedule provisions the breach of which shall entitle the Supervisor to impose a financial penalty, and may also amend the Second Schedule in the said manner.

Report to the Knesset§

104.
(a)At the end of eight months from the day of publication of this Law, the Minister shall submit to the Finance Committee of the Knesset a report on the preparations for its implementation.
(b)The Supervisor shall report to the Finance Committee of the Knesset, at the end of one year and at the end of two years from the day of commencement of this Law pursuant to section 114(a), on the implementation of the Law; such a report shall include details of the directives given in respect of the manner of operation and management of financial service providers, the number of licences and permits granted, suspended or revoked, and financial penalties imposed on violators of the provisions of the Law.
(c)The Supervisor and the Supervisor of Banks shall report to the Finance Committee of the Knesset, at the end of six months from the day of commencement within the meaning of section 114(a), on agreed principles that they have formulated in respect of the manner of operation and actions to be taken against a holder of a licence to provide deposit and credit services, including suspension or revocation of a licence, upon the occurrence of what is stated in section 25i(a)(2).
(d)During a period of two years from the day of commencement of the Financial Services Supervision Law (Regulated Financial Services) (Amendment No. 4), 5777-2017, the Supervisor and the Supervisor of Banks shall report to the Finance Committee of the Knesset, every six months, on the implementation of the agreed principles they have formulated in respect of the management of an account in a banking corporation by a credit intermediation system.

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Chapter XV: Indirect Amendments

Amendment of the Banking Ordinance – No. 30§

105.

In the Banking Ordinance, 1941, in section 15a2(a), after "in section 2 of the Securities Law, 5728-1968," there shall come "to the Supervisor of financial service providers appointed pursuant to the Financial Services Supervision Law (Regulated Financial Services), 5776-2016".

Amendment of the Income Tax Ordinance – No. 228§

106.

In the Income Tax Ordinance [New Version], in section 141a –

(1)in subsection (a) –
(a)instead of "a foreign currency service provider required to register pursuant to section 11c(a)(1) to (5) and (7) of the Anti-Money Laundering Law, 5760-2000" there shall come "a person required to hold a licence pursuant to the Regulated Financial Services Law";
(b)before the definition "transaction" there shall come:

""Regulated Financial Services Law" – the Financial Services Supervision Law (Regulated Financial Services), 5776-2016;";

(2)instead of subsection (n) there shall come:

"(n) The Supervisor of financial service providers appointed pursuant to the Regulated Financial Services Law shall report in writing, every half year, to the Constitution, Law and Justice Committee of the Knesset, on the number of persons registered in the financial service providers registry maintained pursuant to section 5a of that Law, at the beginning and at the end of the said period.".

Amendment of the Banking Law (Customer Service) – No. 21§

107.

In the Banking Law (Customer Service), 5741-1981, in section 7a(c), in paragraph (2), instead of "who is not registered in the registry of currency service providers under the Prohibition of Money Laundering Law, 5760-2000, even though a registration obligation applies to him" there shall come "who does not hold a licence under the Financial Services Supervision Law (Regulated Financial Services), 5776-2016, even though a licensing obligation applies to him".

Amendment of the Consumer Protection Law – No. 48§

108.

In the Consumer Protection Law, 5741-1981, in section 39, at the end thereof there shall come:

"(3) a financial service provider as defined in the Financial Services Supervision Law (Regulated Financial Services), 5776-2016.".

Amendment of the Financial Services Supervision Law (Insurance) – No. 31§

109.

In the Financial Services Supervision Law (Insurance), 5741-1981, in section 50b(a), after "in section 2 of the Securities Law, 5728-1968" there shall come "a Supervisor of Financial Service Providers appointed under the Financial Services Supervision Law (Regulated Financial Services), 5776-2016,".

Amendment of the Administrative Affairs Courts Law – No. 101§

110.

In the Administrative Affairs Courts Law, 5760-2000, in the First Schedule –

(1)item 18 – (Repealed);
(2)in item 21, at the end thereof there shall come:

"(28) the Financial Services Supervision Law (Regulated Financial Services), 5776-2016, except for a decision of the Supervisor that sets rules or guidelines under that Law.".

Amendment of the Prohibition of Money Laundering Law – No. 17§

111.

In the Prohibition of Money Laundering Law, 5760-2000 –

(1)in section 1 –
(a)after the definition "Securities Law" there shall come:

""Regulated Financial Services Law" – the Financial Services Supervision Law (Regulated Financial Services), 5776-2016;";

(b)instead of the definition "currency service provider" there shall come:

""financial service provider" – a financial service provider as defined in the Regulated Financial Services Law, and also a person whose occupation is the provision of a financial service as defined in that Law who does not hold a licence under that Law, excluding a banking corporation and any other body listed in the Third Schedule;";

(c)the definition "currency services" – shall be deleted;
(2)in Chapter III, in the heading of Section A, instead of "financial service providers" there shall come "financial bodies";
(3)in section 7, in the marginal heading, instead of "financial service providers" there shall come "financial bodies";
(4)Chapter IV-A – (Repealed);
(5)in section 11m(a), instead of paragraph (6) there shall come:

"(6) in respect of a financial service provider – the Supervisor of Financial Service Providers appointed under the Regulated Financial Services Law;";

(6)in section 11n(b)(3), instead of "Chapters III and IV-A" there shall come "Chapter III";
(7)in section 11o, subsection (a) – (Repealed);
(8)in section 31b(a), paragraph (4) – shall be deleted;
(9)in section 32 –
(a)in subsection (a)(1), instead of "and Chapters IV-A and IV-B", there shall come "and Chapter IV-B";
(b)subsection (a1) – (Repealed);
(10)in the Third Schedule, instead of item 5 there shall come:

"5. a financial service provider.".

Amendment of the Class Actions Law – No. 11§

112.

In the Class Actions Law, 5766-2006, in the Second Schedule, after item 3 there shall come:

"3a. A claim against a financial service provider, as defined in the Financial Services Supervision Law (Regulated Financial Services), 5776-2016, in connection with a matter between it and a customer, whether or not they entered into a transaction.".

Amendment of the Bank of Israel Law – No. 2§

113.

In the Bank of Israel Law, 5770-2010, in section 1, in the definition "financial body", after item (8) there shall come:

"(8a) a financial service provider as defined in the Financial Services Supervision Law (Regulated Financial Services), 5776-2016.".

Amendment of the Co-operative Societies Ordinance§

113a.

In the Co-operative Societies Ordinance, in section 6, at the end thereof there shall come:

"(5) Notwithstanding the provisions of this section, the following provisions shall apply in respect of membership in an association whose purpose is the provision of deposit and credit services as defined in section 25a of the Financial Services Supervision Law (Regulated Financial Services), 5776-2016 (in this paragraph – a deposit and credit association):

(a)The following may be members of the association:
(1)an individual who has attained the age of eighteen;
(2)a person who, at the time of being admitted as a member of the association, is a corporation employing up to 50 employees, and whose total income from current activity in the tax year preceding that date is less than NIS 25 million; the Minister of Finance may, for the purposes of this subsection, prescribe a different number of employees or a different total income, generally or for a particular class of corporations;
(3)a person who, at the time of being admitted as a member of the association, is a non-profit association, a public benefit company, or an association, even if that person does not meet the conditions set out in paragraph (2);
(b)A deposit and credit association may not be registered under this Ordinance unless it consists of at least seven members, or unless one of its members is a registered association, and the conditions set out in sub-paragraph (a) are met in respect of its members;
(c)Membership in the association shall not lapse by reason of a bankruptcy order being made in respect of a member of the association, and in respect of a member that is a corporation – by reason of a winding-up order being made in respect of it, unless otherwise provided in the rules of the association with the approval of the Registrar.".

Amendment of the Law for the Regulation of the Engagement in Investment Advice, Investment Marketing and Investment Portfolio Management§

113b.

In the Law for the Regulation of the Engagement in Investment Advice, Investment Marketing and Investment Portfolio Management, 5755-1995 –

(1)in section 1, before the definition "foreign exchange" there shall come:

""deposit and credit association" – a co-operative association holding a licence for the provision of deposit and credit services, as defined in the Financial Services Supervision Law (Regulated Financial Services), 5776-2016;";

(2)in section 2(a), instead of "or as an employee or partner in a partnership that holds an adviser's licence" there shall come "as an employee or partner in a partnership that holds an adviser's licence or as an employee of a deposit and credit association";
(3)in section 7, after subsection (b) there shall come:

"(b1) The Authority shall grant an adviser's licence to an applicant that is a deposit and credit association, if it is satisfied that all of the following conditions are met in respect of it:

(1)the association has undertaken that the persons who engage on its behalf in investment advice are its employees who hold an appropriate licence, or that at least one employee holds an appropriate licence;
(2)the association has undertaken that no person who, to its knowledge, has been convicted of an offence, and no person to whom a prohibition on serving as an office holder applies by reason of an enforcement measure as referred to in section 52bd of the Securities Law, imposed on that person under Chapter VIII-D of the Securities Law, under Chapter VII-B of this Law or under Chapter X-A of the Joint Investments Law – shall serve as an office holder in it, for the period during which that prohibition applies to that person;
(3)the association has equity capital in an amount not less than the amount to be prescribed in Regulations;
(4)the association holds insurance, or a bank guarantee, or a deposit or securities in the amounts, rates and conditions to be prescribed in Regulations.".

Amendment of the Financial Services Supervision Law (Pension Counselling, Marketing and Clearing System)§

113c.

In the Financial Services Supervision Law (Pension Counselling, Marketing and Clearing System), 5765-2005, in section 5, after subsection (b) there shall come:

"(b1) The Commissioner shall grant a pension counselling licence to an applicant that is an association holding a licence for the provision of deposit and credit services as defined in the Financial Services Supervision Law (Regulated Financial Services), 5776-2016, if the Commissioner is satisfied that all of the following conditions are met in respect of it:

(1)the association has undertaken that the persons who engage on its behalf in pension counselling are its employees who hold a pension counselling licence;
(2)the association has undertaken that no person who, to its knowledge, has been convicted of an offence shall serve as an office holder in it.".

Amendment of the Banking Law (Licensing)§

113d.

In the Banking Law (Licensing), 5741-1981 –

(1)in section 21(b), in paragraph (2) of the definition "extension of credit", after "to buyers" there shall come "including by a settlement association to its members", and at the end thereof there shall come "for this purpose, "settlement association" – a collective kibbutz, a renewed kibbutz or a collective moshav as defined in the Regulations under section 65 of the Co-operative Societies Ordinance;";
(2)after section 22 there shall come:

"Providers of deposit and credit services below the banking activity threshold

22a. (a) The exclusive activity provision in section 21(a)(1) shall not apply to an association engaged in the provision of deposit and credit services, at a volume below the banking activity threshold.

(b)In this section, "association", "banking activity threshold" and "deposit and credit services" – as defined in sections 1 and 25a of the Financial Services Supervision Law (Regulated Financial Services), 5776-2016, as the case may be.";
(3)(Repealed)

Amendment of the Payment Systems Law§

113e.

In the Payment Systems Law, 5768-2008 –

(1)in section 8, in paragraph (1), instead of the latter part commencing with the words "and including" there shall come "and including in respect of the following matters:
(a)fair requirements for connection to the system for those requesting to participate in it;
(b)the continued participation in the system of a participant against whom winding-up proceedings are being conducted;
(c)measures for the enforcement of the said rules;";
(2)in section 11, after subsection (a) there shall come:

"(a1) The exercise of the Governor's power under subsection (a) in respect of a holder of a licence for the provision of deposit and credit services and in respect of a holder of an issuance licence shall be effected in accordance with the following provisions:

(1)the exercise of the power in respect of the fulfilment of a controlled system operator's obligation to formulate rules under section 8(1)(a) in relation to holders of such licences shall be effected with the consent of the Supervisor of Financial Service Providers;
(2)the exercise of the power in respect of the fulfilment of a controlled system operator's obligation to connect holders of such licences to the system, in accordance with the rules formulated pursuant to section 8(1)(a), shall be effected with the consent of the Supervisor of Financial Service Providers;

In this subsection –

"Financial Services Supervision Law (Regulated Financial Services)" – the Financial Services Supervision Law (Regulated Financial Services), 5776-2016;

"Supervisor of Financial Service Providers" – the Supervisor of Financial Service Providers within the meaning of section 2 of the Financial Services Supervision Law (Regulated Financial Services);

"issuance licence" and "licence for the provision of deposit and credit services" – as defined in the Financial Services Supervision Law (Regulated Financial Services).".

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