Joint Investments in Trust Law, 5754-1994
חוק השקעות משותפות בנאמנות, תשנ"ד-1994
Published: 1994-08-23Consolidated Hebrew text as of 2026-01-01 · Last amended 2026-08-02✓ Amendment status checked against the Knesset legislation record on 2026-09-28
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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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Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.
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 XI: Penalties
121.§
(Repealed — תיקון מס' 17, 2011)
122.§
(Repealed — תיקון מס' 17, 2011)
123.§
(Repealed — תיקון מס' 17, 2011)
Offences of Criminal Intent§
124.
(a)A person who has done any of the following is liable to imprisonment of one year or a fine of six times the fine prescribed in section 61(a)(4) of the Penal Law:
(1)breached the provisions of section 3;
(2)served as a trustee or fund manager without having received the approval of the Chairperson of the Authority or after the approval expired;
(3)breached provisions pursuant to section 21;
(4)served as a director or appointed a director or performed a function or employed a person, contrary to the provisions of the section, after the Authority had suspended that person from their function under section 23(a);
(5)offered units otherwise than pursuant to a prospectus the publication of which the Authority had permitted;
(6)(Repealed);
(7)breached the provisions of section 58;
(8)breached provisions pursuant to section 67;
(9)breached the provisions of section 68;
(10)breached the provisions of section 69;
(11)breached the provisions of section 76(a) or (d);
(12)breached provisions pursuant to section 79;
(13)breached the provisions of section 80;
(14)breached the provisions of section 81;
(15)(Repealed);
(16)breached the provisions of section 99(b);
(17)breached the provisions of section 108(e);
(18)breached a provision listed in the Third Schedule or in the First Schedule, other than a rule of the Authority's rules prescribed pursuant to section 129c or a provision of the Authority's provisions prescribed pursuant to the sections listed in section 129d(a);
(19)(Repealed).
(b)A person who has done something with intent to prevent or frustrate breach investigation proceedings or administrative enforcement proceedings under Chapter VIII-D of the Securities Law as applied in Chapter X-A is liable to imprisonment of three years or a fine of two and a half times the fine referred to in section 61(a)(4) of the Penal Law, and if that person is a corporation – five times the fine referred to in that section.
Offences with Intent to Mislead or Deceive§
125.
A person who has committed one of the offences listed in section 124 with intent to deceive or mislead a unit holder or a person considering the purchase, redemption, buying or selling of a unit is liable to imprisonment of five years or a fine of ten times the fine referred to in section 61(a)(4) of the Penal Law.
Fine for a Continuing Offence§
126.
For a continuing offence, the court may impose, in addition to any other penalty, a fine for each day on which the offence continued, at a rate of one fiftieth of the fine that the court is empowered to impose for that offence.
Liability of an Office Holder in a Corporation§
126a.
(a)An office holder in a corporation is obliged to supervise and do everything possible to prevent offences under section 124(a) by the corporation or by any of its employees; a person who breaches this provision is liable to half the fine prescribed for that offence; for the purposes of this section, "office holder" – an active manager in the corporation, a partner other than a limited partner, or an officer responsible on behalf of the corporation for the area in which the offence was committed.
(b)If an offence under section 124(a) was committed by a corporation or by any of its employees, it shall be presumed that an office holder in the corporation has breached the duty imposed on that office holder under subsection (a), unless that office holder proves that he or she did everything possible to fulfil that duty.
127.§
(Repealed — תיקון מס' 17, 2011)
128.§
(Repealed — תיקון מס' 17, 2011)
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Contact Us →Chapter XI-A: Arrangement for Refraining from or Discontinuing Proceedings, Subject to Conditions
Definitions§
128a.
In this Chapter –
"proceedings" – an infringement examination proceeding or an administrative enforcement proceeding, pursuant to Chapter VIII-D of the Securities Law as applied in Chapter X-A, or a criminal investigation pursuant to section 56c of the Securities Law as applied in section 97a(c), as the case may be;
"infringement", "offence" – as defined in section 97a(a).
Authority of the Chairperson of the Authority or District Prosecutor to Enter into an Arrangement for Refraining from or Discontinuing Proceedings Subject to Conditions§
128b.
The authority vested in the Chairperson of the Authority and in a District Prosecutor to enter into an arrangement for refraining from or conditionally discontinuing proceedings, as the case may be, pursuant to the provisions of Chapter IX-A of the Securities Law, shall be vested in them in respect of an infringement or an offence, and the provisions of that Chapter shall apply in that regard, with the necessary modifications.
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Contact Us →Chapter XII: Miscellaneous Provisions
Keeping of Fund Records and Authority's Demand for Information§
129.
(a)A fund manager shall maintain the fund's records in a manner that includes all information pertaining to the fund, and shall retain them for at least seven years; for this purpose, "fund's records" – a place in which particulars pertaining to the fund, the assets held therein, transactions carried out on its behalf, decisions taken in connection with its management are recorded, including computer reports containing particulars of the types referred to above, as well as additional particulars prescribed by the Minister of Finance.
(b)The Authority may direct the manner in which a fund manager is to retain data from the fund's records; a directive as aforesaid shall be published in Reshumot (Official Gazette).
(b1)The Authority or an employee whom it has authorised for that purpose may demand from a fund manager information connected with it or with the fund, and data contained in the fund's records, and may direct the manner in which such information or data shall be provided and set a time limit for their provision.
(c)(Repealed).
129a.§
(Repealed — תיקון מס' 23, 2014)
Service of Documents from the Authority by Secure Electronic Mail§
129b.
The provisions pursuant to Chapter VII-B of the Securities Law shall apply, with the necessary modifications, to any notice, directive, demand and any other document that the Authority or an employee whom it has authorised for that purpose is entitled to serve under this Law on a fund manager or a fund trustee.
Money Market Fund§
129c.
Notwithstanding the provisions of sections 26, 42(e), 43(b), 46(e), 50(b), 59, 62(b), 64(a), 65(b), 72(a) and 73(c)(3) and (c1), in respect of a money market fund the provisions of those sections shall apply with the following modifications:
(1)in respect of section 26, the Authority shall be vested with the power to prescribe rules in the matters referred to in that section, and may also prescribe in such rules particulars that may be completed at a date later than the date of publication of the prospectus;
(2)in respect of section 42(e), the Authority shall be vested with the power to prescribe provisions in respect of the manner and times for the publication of unit prices and redemption prices pursuant to that section;
(3)in respect of sections 43(b), 46(e), 50(b), 59, 62(b), 64(a), 65(b), 72(a) and 73(c)(3), the Authority shall be vested with the power to prescribe provisions in the matters referred to in those sections;
(4)in respect of section 73(c1), the Authority shall be vested with the power to prescribe rules in the matters referred to in that section.
Service of Documents from the Authority by Secure Electronic Mail§
129d.
(a)Directives of the Authority pursuant to sections 47, 73(b)(1), 97(b) and 129c(2) and (3) – there is no obligation to publish them in Reshumot (Official Gazette); however, the Authority shall publish in Reshumot (Official Gazette) a notice of the issuance of such directives and the date of their commencement.
(b)Directives of the Authority as referred to in subsection (a), and any amendment thereto, shall be made available for public inspection at the offices of the Authority and shall be published on its website.
Transitional Provision§
130.
(a)
(1)A trust agreement signed pursuant to the provisions of the Joint Investments in Trust Law, 5721-1961, shall be read, from its date of commencement, as a fund agreement;
(2)If a fund agreement does not satisfy the provisions of section 5 within twelve months from the day of commencement of this Law, the Chairperson of the Authority may apply to the court for an order directing the fund manager and the trustee to amend the fund agreement as required under this Law.
(b)The tenure of a company that served as trustee on the eve of the commencement of this Law shall terminate at the end of twelve months from the date of commencement of Regulations under section 9, if at that time the provision pursuant to section 9 is not satisfied in respect of it; if a fund has more than one trustee, the tenure of the trustee in respect of whom a provision of section 9(d) is not satisfied shall terminate at the end of ninety days from the day of commencement of this Law.
(c)If a company that served as fund manager on the eve of the commencement of this Law does not satisfy a provision pursuant to section 13 within twelve months from the date of commencement of Regulations under section 13, the Chairperson of the Authority may apply to the court for an order as referred to in section 15(c)(2).
(d)The commencement of the provisions of sections 16(a) to (c), 17(b) and 19(a) and (c) shall be six months after the commencement of this Law.
(e)If at the date of commencement of Regulations under section 62, a fund manager holds, in a fund or funds under its management, securities, foreign securities or units (hereinafter – assets) at rates exceeding the rates prescribed in such Regulations –
(1)it shall not acquire any of those assets so long as the rate it holds of them exceeds the permitted rate;
(2)it shall sell those assets in a manner such that at the end of twelve months from the commencement of the Regulations their rate does not exceed the permitted rate.
(f)Nothing in the provisions of this Law shall affect the validity of a participation certificate lawfully issued before its commencement.
Fees§
130a.
The Minister of Finance may prescribe provisions in respect of fees to be paid to the Authority.
130b.§
(a)The fund manager shall submit to the Authority and to the distributor through whom the units are held, not later than three business days after the publication of the Law Amending the Income Tax Ordinance [New Version] (Amendment No. 132) (Amendment), 5763-2002 (hereinafter – the Amendment), a report in which the tax track chosen for the fund shall be specified, as well as an information letter detailing the principal characteristics of each of the tax tracks, unless such a report and information letter were submitted before the publication of the Amendment.
(b)The fund manager shall send notice of the tax track chosen for the fund and the information letter, as referred to in subsection (a) (in this section – the notice of track selection), to the unit holders holding units through it, and the distributor shall send the notice of track selection to the unit holders holding units through it, according to their addresses known at that time, not later than seven business days from the date of submission of the notice of track selection to the Authority; where the fund manager has submitted to the Authority a report on a change of the tax track of the fund, the fund manager and the distributor shall send the notice of change of track to the unit holders not later than three business days from the date of submission of the report to the Authority.
Implementation and Regulations§
131.
(a)The Minister of Finance is charged with the implementation of this Law and may make Regulations in respect of all matters relating to its implementation, on the proposal of the Authority or after consultation with it, and with the approval of the Finance Committee of the Knesset.
(b)The Minister of Justice may make Regulations in respect of rules of procedure for applications to be submitted to the court under this Law.
Amendment to Securities Law – No. 14§
132.
In the Securities Law –
(1)in section 1, the definition of "corporation" – shall be deleted; in the definition of "securities", the words "including participation certificates of a joint investment fund in trust" – shall be deleted; in the definition of "Joint Investments Law", the existing text shall be replaced by "Joint Investments in Trust Law, 5754-1994";
(2)in section 24(b), the closing part beginning with the words "and in respect of a prospectus" – shall be deleted;
(3)in section 52k(a), the words "or a provision of the Joint Investments Law or Regulations made thereunder" – shall be deleted;
(4)in section 54(b), at the end thereof the following shall be added: "including units of a closed-ended fund pursuant to the Joint Investments in Trust Law".
(5)in section 54a(a), at the end thereof the following shall be added: "For the purpose of this section, a fund manager as defined in section 4 of the Joint Investments in Trust Law, 5754-1994, shall be deemed to hold a security held in the fund".
Repeal§
133.
The Joint Investments in Trust Law, 5721-1961 – is repealed; however –
(1)section 10 of that Law shall continue in force until the commencement of Regulations to be made under sections 42 and 43 of this Law;
(2)section 14 of that Law shall continue in force until the commencement of Regulations to be made under section 62 of this Law.
Savings§
134.
The Regulations listed below shall remain in force as in their text on the date of commencement of this Law or as amended pursuant thereto, so long as they have not been revoked:
(1)Securities Regulations (Particulars, Structure and Form of a Prospectus of a Trust Investment Fund), 5730-1969;
(2)Joint Investments in Trust Regulations (Methods of Publication of Unit Prices, Redemption Prices and List of Fund Assets), 5722-1961;
(3)Joint Investments in Trust Regulations (Preparation of Annual Financial Report), 5730-1970;
(4)Securities Regulations (Periodic and Immediate Reports of a Trust Investment Fund), 5748-1987;
(5)Joint Investments in Trust Regulations (Holding of Foreign Currency), 5741-1980;
(6)Joint Investments in Trust Regulations (Purchase of Foreign Securities), 5749-1989.
Commencement§
135.
(a)This Law, except for section 82, shall commence on the 27th of Tishrei 5755 (2 October 1994).
(b)Section 82 shall commence on the date of publication of this Law in Reshumot (Official Gazette).
Publication§
136.
This Law shall be published in Reshumot (Official Gazette) within 30 days of its adoption.
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Contact Us →First Schedule
(Sections 114, 115 and 124(a)(18))
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Contact Us →Part 1
(1)did not include in the fund agreement a particular that was required to be included therein in accordance with the provisions of section 5;
(2)did not submit the fund agreement to the Authority for registration before the issuance of the first unit, or did not submit to the Authority an amended fund agreement before the date of entry into force of the amendment, contrary to the provisions of section 8(a);
(3)did not make the fund agreement available for public inspection at the principal offices of the fund manager or of the trustee, contrary to the provisions of section 8(b);
(4)did not provide a copy of the fund agreement or of any amendment thereto to a unit holder upon request, contrary to the provisions of section 8(c);
(5)did not submit to the Authority a report, notice, document, explanation, particulars or information, by the time prescribed for that purpose, contrary to provisions pursuant to sections 16(a1), 34(a), 52, 54(b), 61(c), 71(a) or (b), 72, 77(c), 78(e), 80(c), 100(f), 101(d), 110(1), 112(d), 112a or 112b, or pursuant to section 72a as applied in section 129c(3), or submitted a report, notice, prospectus or other document not in accordance with the provisions pursuant to sections 72a and 131(a), or did not include in a report, notice, document or other information submitted to the Authority a particular that was required to be included therein in accordance with the provisions pursuant to the said sections, provided that a specific requirement to state the particular has been prescribed under those sections;
(5a)served as a director or as a member of an investment committee in more than two additional investment management companies at the same time, contrary to the provisions of sections 16(c) and 20(b2), or served as a member of an audit committee contrary to the restrictions prescribed in section 20a(d);
(5b)did not draw up minutes of a board of directors meeting as required by section 17(c), of a board committee meeting as required by section 19(d), or of an audit committee meeting as required pursuant to section 20a(j);
(5c)did not comply with a demand issued to it pursuant to section 23b2(e);
(5d)purchased or sold a security traded on an exchange, contrary to provisions pursuant to section 21, as prescribed in regulations 2 and 3 of the Joint Investments in Trust (Personal Restrictions on a Director, Member of an Investment Committee and Employee of a Fund Manager) Regulations, 5759-1999;
(6)did not furnish to the fund manager or to the Chairperson of the Authority a report on the holding of means of control in a fund manager or other particulars prescribed by the Chairperson of the Authority, by the time prescribed for that purpose, contrary to provisions pursuant to section 23f;
(7)did not include in the prospectus a particular that was required to be included therein in accordance with the provisions pursuant to sections 26(a), 27(a) or 29(d) or pursuant to section 26(a) as applied in section 129c(1);
(8)did not give special prominence to a particular brought in the prospectus, in the form directed by the Authority, contrary to the provisions pursuant to section 27(b);
(9)did not publish in a newspaper a notice or report, by the time prescribed for that purpose, contrary to the provisions pursuant to sections 31(b), 61(c), 72(a) or 112a, or pursuant to section 72(a) as applied in section 129c(3), or did not include in such a publication a particular that was required to be included therein in accordance with the provisions pursuant to those sections;
(10)did not publish the unit prices or the redemption prices of an open-ended fund in accordance with the provisions pursuant to section 42(e) or pursuant to that section as applied in section 129c(2), or did not publish the unit value of a closed-ended fund in accordance with the provisions pursuant to section 50(b) or pursuant to that section as applied in section 129c(3), or published unit prices or redemption prices of an open-ended fund or the unit value of a closed-ended fund that were calculated not in accordance with the provisions pursuant to section 43(b) or 50(b) or pursuant to those sections as applied in section 129c(3), as the case may be;
(10a)offered units of a closed-ended fund or allotted units so offered to subscribers, contrary to the provisions pursuant to section 54a, responded to a subscription for fund units in an amount or at a rate exceeding an amount or rate prescribed pursuant to section 58b, or breached a provision of the provisions pursuant to section 56(g) in respect of the redemption of units in a closed-ended fund;
(11)did not submit to the fund manager a notice of the units held by it or of a change in their number, in the manner and by the time prescribed for that purpose, contrary to the provisions pursuant to section 71(c);
(12)was present at or voted in a deliberation on the matter of approving a transaction in securities issued by a corporation in which it is an interested party, contrary to the provisions of section 81a;
(13)did not notify the trustee or did not notify at a general meeting of unit holders that a unit holder sold or redeemed units after having received confirmation from a stock exchange member in respect of their holding, contrary to the provisions of section 111(e)(2);
(14)insured, indemnified or paid a financial sanction on behalf of another, contrary to the provisions of section 120b.
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