Regulatory Alerts2023-07-19
Proper Conduct of Banking Business Directive No. 461: A Banking Corporation’s Activities as a Broker-Dealer
The Bank of Israel issued Proper Conduct of Banking Business Directive No. 461 to establish a comprehensive regulatory framework for banking corporations engaging in broker-dealer activities. The Directive mandates strict corporate governance, risk management, and internal audit standards while requiring banks to align operations with client profiles and ensure best execution of trades. It further imposes rigorous obligations regarding professional qualifications, conflict of interest mitigation, transaction documentation, and automated monitoring to protect clients and maintain market integrity.
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