Recently, the Israeli Securities Authority ("ISA") issued a proposed draft for public comments, the purpose of which is to regulate the ability of portfolio management companies to manage their clients’ portfolios via trading platforms.

In the proposed amendment, the ISA expresses the opinion that the current wording of the law does not, on a practical basis, permit portfolio management via trading platforms. According to the proposed amendment, the wording of the law will be amended in order to allow portfolio managers, to manage their client’ portfolios via trading platforms. In addition, the proposed amendment stipulates that in order to create a complete segregation between portfolio management companies and trading platforms, there must be no affiliation between the portfolio management company and the trading platform.

For the full proposed draft (Hebrew) – click here

The proposed draft is a version which has been published for public comments that are to be provided by June 03, 2016. Since the proposed draft has significant consequences for entities which provide portfolio management or trading platforms services, we strongly recommend such entities to properly examine the proposed draft and its potential consequences for their activities. Our firm takes pride in playing an active part in shaping regulation in various financial areas and accordingly, any interested entity or individual can send comments to us, after which we will collate all comments and provide them to the ISA.