Media Centre

An update to the Conditions of a General Permit under Section 49A to the Securities Law

18 January 2024

Dear clients,


We would like to inform you that the Israel Securities Authority (the “ISA”) has updated the conditions for obtaining a “General Permit” under section 49A of the Securities Law, 1968 (the “Updated Conditions” and the “Securities Law”, respectively).


By way of background, according to Section 49A of the Securities Law, the offering of “securities trading services” (e.g. brokerage services) in exchanges that operate outside of Israel, requires a permit from the ISA. In 2018, the ISA published a set of conditions that make applicants (almost) automatically eligible for a permit (a permit granted based on such conditions is referred to as a “General Permit”).  These “General Permit” conditions have now been updated.


The Updated Conditions impose the following set of additional requirements, on permit holders that act through third-parties which communicate with investors in Israel (“External Marketers”):

  1. Ensuring that the “External Marketers” are not involved in the receipt and transfer of clients’ orders, are not otherwise involved in the execution of the clients’ transactions, or in the purchase or sale of securities in order to execute clients’ orders;
  2. Ensuring that the “External Marketers” do not hold, and are not otherwise involved in handling or transferring investors’ funds or assets;
  3. Supervising and monitoring the “External Marketers”, approving them in advance after assessing their qualification to communicate with investors, monitoring the information they provide to investors and their satisfaction of the above conditions;
  4. Maintaining an updated list of “External Marketers” that act on the permit holder’s behalf, publishing this list on the marketing website directed at investors in Israel, and providing the list to the ISA prior to receipt of the permit and after every change that is made to the list.


If these conditions are satisfied, the “External Marketer” is exempt from the requirement to hold a permit. Employees of the permit holder, and other permit holders, are not considered “External Marketers”.


These conditions apply to both existing permit holders and those seeking a permit. The Updated Conditions will become effective on February 10th, 2024. 


For the full publication >> click here


We understand that some of these conditions may pose challenges. We invite our clients to reach out to us for assistance in assessing the application of these rules to their activity, or understating how to comply therewith.


Our team has vast experience in financial regulation and representing foreign and local broker-dealers. Our firm is in direct contact with the ISA and has assisted many entities in granting general permits. We will be happy to be at your service and assist with any issue, as well as in any questions or clarifications during these times.

Best regards,


Capital Markets & Securities Regulation

Banking Department

Herzog Fox & Neeman 


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