Client Update – Foreign Funds
Approved Stock Exchanges for the Purpose of Double Listing of Foreign Funds

The Israeli Ministry of Finance has recently published a proposed amendment to the “Joint Investment Trust Regulations (Foreign Fund Unit Offerings) 2016” (the “Proposed Regulations“). If approve, the amendment will serve as a significant step towards opening the Israeli market to the largest and most professional asset managers in the world.

Under the current regulatory framework, only securities of corporations that are listed on exchanges specified in the Securities Law may be listed in a double listing. Pursuant to the Proposed Regulations, listing of traded foreign funds will not be limited to funds that are traded on stock exchanges specified in the Securities Law. Instead the Israel Securities Authority (“ISA”) will examine the stock exchange outside Israel in which the foreign fund is traded in order to determine whether to grant a permit to offer units of a traded foreign fund to the public in Israel.

The examination will be based upon various quantitative parameters such as volume of trading, number of funds traded, and value of assets in each exchange, as well as the relevant laws applicable to the foreign fund and the ISA’s familiarity with the relevant regulator of each exchange.

This amendment, if approved, will create an opportunity for traded foreign funds managers, whose funds are listed on stock exchanges not currently specified in the Securities Law, to reconsider and examine listing for trading in Israel.

Herzog, Fox & Neeman represent the vast majority of global asset managers, mutual funds and ETFs that are currently registered in Israel, and will be happy to be at your service for any issue in these areas.

Liat Maidler | Partner
Head Of Capital Markets & Securities Regulation
maidlerl@herzoglaw.co.il

Limor Tshuva | Associate
Capital Markets & Securities Regulation
tshuval@herzoglaw.co.il