Investment Advice, Investment Marketing and Investment Portfolio Management Law, 5755-1995
חוק הסדרת העיסוק בייעוץ השקעות, בשיווק השקעות ובניהול תיקי השקעות, תשנ"ה-1995
Published: 1995-08-10Consolidated Hebrew text as of 2026-07-19 · Last amended 2026-03-31✓ 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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Part 2
(1)employed a person in that person's name in investment advice, investment marketing or portfolio management contrary to an undertaking under section 7(b)(2) or (4) or (c)(1) or (2) or under section 8(b)(2) or (3), as the case may be;
(1a)failed to comply with a requirement issued to that person under section 4a(e);
(1b)failed to submit to the Authority a report or notice, in accordance with the provisions prescribed by the Authority, contrary to the provisions of section 3(a4)(3), including failing to include a particular that was required to be included therein, provided that a special requirement to state that particular was prescribed in those provisions;
(1c)failed to disclose to a client, by way of adequate disclosure, a material matter prescribed under section 14(b) as applied by section 3(a4)(1)(a), contrary to the provisions made under those sections;
(2)received a benefit, directly or indirectly, in connection with investment advice, investment marketing, the execution of a transaction or the refraining from executing a transaction, other than remuneration and reimbursement of expenses from the client as set out in an agreement under section 13(b)(3), contrary to the provisions of section 17(a);
(3)gave to an employee, a branch or a unit, in connection with investment advice, investment marketing, the execution of a transaction or the refraining from its execution, a benefit determined by reference to the identity of the body by which the securities that are the subject of the advice, marketing or transaction are issued, or by reference to the identity of the body that has a connection to the financial assets that are the subject of the advice, marketing or transaction, contrary to the provisions of section 17(c);
(4)determined the calculation of the remuneration or reimbursement of expenses with which a client is to be charged in respect of investment advice, while making such calculation dependent on the identity of the body in respect of the securities issued by it or in respect of the financial assets to which it has a connection that the advice relates, or dependent on the client's payment to such a body, contrary to the provisions of section 17(d);
(5)used the word "advice" or any word derived therefrom, in the name under which that person conducts business or in a publication on that person's behalf, contrary to the provisions of section 20b;
(6)failed to submit to the Authority a report or failed to deliver to it a notice, explanation, details, information or documents, in the manner or at the time prescribed therefor, contrary to the provisions made under sections 10g, 27, 27a, 27c, 42, or contrary to the provisions made under sections 52aa, 52bh, 54c(c) or 54f of the Securities Law as applied by sections 38a, 38g and 40c, respectively, or failed to include in a report a particular that was required to be included therein in accordance with the provisions made under section 27c(2), provided that a special requirement to state that particular was prescribed under that section.
(7)contravened the provisions of section 24c(a) regarding the appointment of a chairperson of the board of directors;
(8)contravened the provisions of section 24f(1) regarding the appointment of a chief executive officer;
(9)contravened the provisions of section 24f(3) regarding the appointment of an internal auditor;
(10)contravened the provisions of section 24h(a) regarding the appointment of an audit committee.
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Contact Us →Third Schedule (section 38b(a))
1.§
In respect of a company holding a portfolio management licence –
| Total asset value (in new shekels) | Breach of a provision listed in Part 1 of the Second Schedule | Breach of a provision listed in Part 2 of the Second Schedule | ||
|---|---|---|---|---|
| Rate of sanction as a proportion of total asset value | Minimum sanction amount | Rate of sanction as a proportion of total asset value | Minimum sanction amount | |
| For each shekel of total asset value up to 64,308,000 | 1/1,000 | 26,000 | 1/400 | 64,000 |
| For each shekel of total asset value from 64,308,001 to 643,078,000 | 1/9,000 | — | 1/3,600 | — |
| For each shekel of total asset value from 643,078,001 to 6,430,779,000 | 1/90,000 | — | 1/36,000 | — |
| For each shekel of total asset value above 6,430,779,000 | 1/450,000 | — | 1/180,000 | — |
| Maximum sanction amount | 257,000 | 643,000 |
2.§
(Repealed)
3.§
In respect of a corporation holding an investment advice or investment marketing licence –
(1)breach of a provision listed in Part 1 of the Second Schedule – the product of NIS 32,000 multiplied by the number of licence holders employed by it, up to a maximum amount of NIS 257,000;
(2)breach of a provision listed in Part 2 of the Second Schedule – the product of NIS 64,000 multiplied by the number of licence holders employed by it, up to a maximum amount of NIS 643,000.
4.§
In respect of a banking corporation –
(1)breach of a provision listed in Part 1 of the Second Schedule – NIS 514,000;
(2)breach of a provision listed in Part 2 of the Second Schedule – NIS 1,286,000.
s4i4a.§
In respect of a corporation that is not a licence holder and is not a banking corporation –
(1)breach of a provision listed in Part 1 of the Second Schedule – NIS 64,000;
(2)breach of a provision listed in Part 2 of the Second Schedule – NIS 129,000.
5.§
In respect of an individual –
(1)breach of a provision listed in Part 1 of the Second Schedule – NIS 13,000;
(2)breach of a provision listed in Part 2 of the Second Schedule – NIS 19,000.
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Contact Us →Fourth Schedule (section 38f)
(1)the person violated a provision of the provisions set out in the Second Schedule applicable to that person, and in the three years preceding the commission of the said violation that person violated, on at least two occasions, the same provision, and the Authority notified that person of the commission of each of the said violations, separately, whether or not it imposed a financial penalty on that person for the commission of the violation;
(2)during a period of one year, the person violated the same provision of the provisions set out in the Second Schedule applicable to that person, in relation to a number of clients as set out below, as the case may be:
(a)in relation to a violator who is a banking corporation or who is a licence holder with at least 50 clients – in relation to at least 20 clients;
(b)in relation to a violator who is a licence holder with at least 20 clients but fewer than 50 clients – in relation to at least 10 clients;
(c)in relation to a violator who is a licence holder with fewer than 20 clients – in relation to the majority of that person's clients;
(3)the person engaged in investment advice without holding an adviser's licence, or engaged in investment advice other than as an individual or as an employee of a company that is the holder of an adviser's licence or the holder of a portfolio manager's licence that also engages in advice, or other than as an employee or partner in a partnership that is the holder of an adviser's licence, in contravention of the provisions of section 2(a);
(4)the person engaged in investment portfolio management without holding a portfolio manager's licence, or engaged in portfolio management other than in a company that is the holder of an investment portfolio manager's licence, in contravention of the provisions of section 2(b);
(5)the person engaged in investment marketing without holding a marketer's licence, or engaged in investment marketing other than as an individual or as an employee of a company that is the holder of a marketer's licence or the holder of a portfolio manager's licence that also engages in marketing, or other than as an employee or partner in a partnership that is the holder of a marketer's licence, in contravention of the provisions of section 2(b1);
(6)the person employed in its name, in investment marketing in respect of financial assets managed by it or issued or released by it, a person who is not the holder of a marketer's licence or the holder of a portfolio management licence, in contravention of the provisions of section 2(b2);
(6a)the person did not notify the client of the existence of a conflict of interests in accordance with the provisions prescribed by the Authority, in contravention of the provisions under section 3(a4)(2);
(6b)the person did not submit to the Authority a report or notice in accordance with the provisions under section 3(a4)(3), and ought to have known that such failure was capable of misleading a reasonable investor;
(7)a person who is not a licence holder, who gave investment advice in the media without including a notice as to whether or not that person has a personal interest in the matter or a notice that the giving of the advice is not a substitute for advice that takes into account the particular data and needs of each person, in contravention of the provisions of section 3(b), unless that person delivered the said notices to the media and received its written undertaking to include the said notices in the publication;
(8)the person approached with a proposal to provide services in contravention of the provisions of section 3a;
(9)(Repealed)
(10)(Repealed)
(10a)the person controlled a portfolio manager that is a significant financial body, or held means of control in such a portfolio manager, in contravention of the provisions of section 4a;
(11)the person engaged in portfolio management, in contravention of the provisions of section 9(a);
(12)the person employed in its name in investment advice a person who is not among those enumerated in section 9(b);
(13)the person served as an office holder in an authorised corporation that is a related corporation of a banking corporation, while serving as an office holder or employee in the banking corporation or in another related corporation thereof, in contravention of the provisions of section 9(d);
(14)the person engaged in investment marketing other than as referred to in section 9(g1), in contravention of the provisions of section 9(f);
(15)the person preferred that person's own personal interests or the interests of another over the interests of that person's clients, or preferred the interests of one client over another client, in contravention of the provisions of section 11;
(16)the person did not adapt the advice or marketing that person provides to a client or the nature of the transactions that person executes on behalf of a client to the needs or instructions of the client, in contravention of the provisions of section 12;
(17)the person did not disclose to the client, by way of proper disclosure, all matters material to the advice or marketing given by that person or to the proposed transaction, in contravention of the provisions under section 14 or under that section as applied by section 3(a4)(1)(a);
(18)the person did not notify the client of the existence of a conflict of interests between that person or the authorised corporation in which that person is employed or a partner and the client, in the manner prescribed under section 15(a) or (b), or performed an act involving a conflict of interests without obtaining the client's prior written consent thereto in the manner prescribed under section 15(a);
(19)in giving investment advice or in managing investment portfolios, the person preferred securities or financial assets of that person's own or of a corporation related to the corporation in which that person is employed or a partner, by reason of the said relationship, in contravention of the provisions of section 16(a);
(20)the person included a notice stating that that person has no personal interest in the matter, at a time when that person had a personal interest in the matter, in contravention of the provisions of section 16a(d);
(21)the person gave advice or executed a transaction in a financial asset to which an institutional body holding ten per cent or more of any class of means of control in the adviser has a connection, in contravention of the provisions of section 17a;
(22)the person entered into an exceptional agreement with an institutional body without obtaining the prior written approval of the Chairperson of the Authority therefor, and if that person is a banking corporation – also of the Supervisor of Banks, in contravention of the provisions of section 17b(a);
(23)the person did not notify the client of the special risk involved in executing a transaction that is not among the transactions listed in section 18(c), in contravention of the provisions of section 18(a);
(24)the person executed on behalf of a client a transaction that is not among the transactions listed in section 18(c) and the execution of which involves a special risk, without the client having given prior written approval for that transaction or for transactions involving the same type of risk, in contravention of the provisions of section 18(b);
(25)the person engaged in underwriting in contravention of the provisions of section 20d(a), or engaged in an occupation that is not among the occupations enumerated in section 8(b)(1), in contravention of the provisions of section 20d(b);
(26)the person did not furnish the client with a report in contravention of the provisions under section 26, and ought to have known that such failure was capable of misleading the client;
(27)the person did not submit to the Authority, in the manner or within the time prescribed therefor, a report or did not provide it with a notice, explanation, particulars, information or documents, in contravention of the provisions under section 27, 27a, 27c or section 42, or in contravention of the provisions under sections 52aa, 52bh, 54c(c) or 54f of the Securities Law, as applied by sections 38a, 38g and 40c, respectively, and ought to have known that such failure was capable of misleading a reasonable investor;
(28)the person included a misleading particular in a report in contravention of the provisions of section 26(d) or section 27c and ought to have known that such inclusion was capable of misleading the client or a reasonable investor, as the case may be;
(29)the person disclosed the contents of information or a document that came into that person's possession by virtue of that person's position, in contravention of the provisions of section 28(d)(2).
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