Israel Securities Authority Publishes Directive for Payment Companies Regarding the Implementation of an Open Banking Standard

We wish to bring to your attention that on June 7, 2026, the Israel Securities Authority (the “Authority”) published a Directive for Payment Companies Regarding the Implementation of an Open Banking Standard (the “Directive”).

As you may recall, in January 2026, the Authority published a draft of this Directive for public comments (the “Draft Directive”). The final version now published incorporates changes made in response to the comments received.

The purpose of the Directive is to regulate the activities of payment companies in connection with their obligation to provide access to their customers’ financial information in accordance with the requirements of the Financial Information Service Law, 2021 (the “FIS Law”), and their obligation to provide payment initiators with access to customers’ payment accounts, in accordance with the requirements of the Regulation of Payment Services and Payment Initiation Law, 2023 (the “RPSL”) (collectively: the “Open Banking Obligations”).

The Directive establishes a uniform framework for payment companies in connection with the provision of the aforementioned access, in a manner that ensures the proper, secure and transparent operation through an access interface, while maintaining an adequate level of service and protecting customers.

It should be noted that as part of the 2026 Economic Arrangements Law,[1] indirect amendments to the FIS Law and the RPSL were approved, deferring the commencement of the Open Banking Obligations, such that these will apply to payment companies three years from the date of receipt of their license (provided that no obligations to grant access to information or to payment accounts applied to the payment company prior to the receipt of such license).
 

Below is a summary of the key changes made in the final version of the Directive compared to the Draft Directive:

• Changes to Definitions (Section 1):
  • The definition of “basic initiator” was added in accordance with the definition in the RPSL (replacing the definition of “payment initiator” in the Draft Directive), and the definition of “payment order interface system” was amended in accordance with the definition in the RPSL;
  • The definition of “payment account manager” was amended in accordance with its definition in the Payment Services Law, 2019;
  • The definition of “severally and jointly joint account” was added in accordance with its definition in the FIS Law.

 

• Scope of Applicability of the Directive (Section 2). The scope section regarding the types of accounts to which the Directive applies was narrowed, so that it no longer includes reference to specific account types (which appeared in Sections 2.3-2.5 of the Draft Directive). The scope of the Directive regarding account types is now defined solely in accordance with the FIS Law and the RPSL.

 

• Mechanism for Deviation from Malfunction Resolution Timeframes (SLAs) (Section 35). Following public comments regarding the difficulty of setting rigid timeframes for malfunction resolution, an exception mechanism was added to the Directive. Accordingly, where the information source or payment account manager does not meet the prescribed timeframes, it shall be required to publish a notice on the developer portal (including a description of the malfunction and expected resolution time), and to work on formulating a temporary solution that will enable the continuous operation of the open banking interface. Additionally, the information source or payment account manager shall maintain and keep a record of all malfunctions, and the Directive’s explanatory notes indicate that these aspects will be taken into account in enforcement considerations.

 

• Adoption of the Berlin Group Standard – Updated Reference (Annex A). The reference was updated so that it now refers to the Berlin Group Standard as published by the Bank of Israel on its website, instead of the reference that appeared in the Draft Directive to the appendix to the Bank of Israel Proper Conduct of Banking Business Directive (PCBBD) No. 368.

 

• Commencement and Periodic Review of the Directive (Chapters J-K). A section was added stating that the Directive shall come into force one week from the date of publication of notice of its adoption in the Official Gazette (Reshumot), as well as a section stating that the first review of the Directive shall be conducted ten years from the date of its commencement.

 
To view the Directive (in Hebrew) >> Click here

To view the Authority’s summary of public comments (in Hebrew) >> Click here

To view our previous client update regarding the Draft Directive >> Click here

Our firm has extensive expertise and many years of experience in the financial services sector in all its aspects. We monitor and follow all regulatory developments in this field, assist, and advise leading financial entities in Israel and worldwide.

We would be happy to assist you with any issues in these areas, including in connection with the above publication and preparations for its implementation, as well as any questions or clarifications.

[1]The Economic Policy Program Law (Legislative Amendments for Implementation of Economic Policy for Budget Year 2026), 5786-2026.