2009 Regulations for the Establishment and Operation of Financial Advisory and Investment Advice Companies

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2009 Regulations for the Establishment and Operation of Financial Advisory and Investment Advice Companies

1. Short Title These regulations shall be known as the 2009 Regulations for the Establishment and Operation of Financial Advisory and Investment Advice Companies.

2. Definitions In these regulations: "Financial Advisory Company" means a company licensed under the Securities Law, 5728-1968, to provide financial advisory services; "Investment Advice Company" means a company licensed under the Securities Law, 5728-1968, to provide investment advice; "The Law" means the Securities Law, 5728-1968.

3. Amendment to the Regulations for the Establishment and Operation of Financial Advisory and Investment Advice Companies, 1999 The Regulations for the Establishment and Operation of Financial Advisory and Investment Advice Companies, 1999 (hereinafter - "the 1999 Regulations") are amended as follows:

4. Addition of a new regulation A new regulation 5A shall be added to the 1999 Regulations, which reads: "5A. (a) A Financial Advisory Company or an Investment Advice Company shall not provide financial advisory services or investment advice, as the case may be, unless it is licensed to do so under the Law. (b) A Financial Advisory Company or an Investment Advice Company shall not provide financial advisory services or investment advice, as the case may be, to a client unless it has entered into a written agreement with the client regarding the provision of such services or advice. (c) A Financial Advisory Company or an Investment Advice Company shall not provide financial advisory services or investment advice, as the case may be, to a client unless it has provided the client with a written document setting out the nature of the services or advice, the fees payable for such services or advice, and any other material information required by the Authority."

5. Addition of a new regulation A new regulation 5B shall be added to the 1999 Regulations, which reads: "5B. (a) A Financial Advisory Company or an Investment Advice Company shall maintain records of all financial advisory services or investment advice provided by it, including the identity of the client, the nature of the services or advice, the fees payable, and the date of provision. (b) A Financial Advisory Company or an Investment Advice Company shall retain the records referred to in paragraph (a) for a period of seven years from the date of provision of the services or advice."

6. Repeal The Regulations for the Establishment and Operation of Financial Advisory and Investment Advice Companies, 1999 are hereby repealed.

*. (6029) The Registrar of Companies, 1 Iyun HaYehudim Street, Jerusalem 2009

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5. Addition of a new regulation A new regulation 5B shall be added to the 1999 Regulations, which reads: "5B. (a) A Financial Advisory Company or an Investment Advice Company shall maintain records of all financial advisory services or investment advice provided by it, including the identity of the client, the nature of the services or advice, the fees payable, and the date of provision. (b) A Financial Advisory Company or an Investment Advice Company shall retain the records referred to in paragraph (a) for a period of seven years from the date of provision of the services or advice."

6. Repeal The Regulations for the Establishment and Operation of Financial Advisory and Investment Advice Companies, 1999 are hereby repealed.

/ The Registrar of Companies