Provision of brokerage services by UK firms to clients in Israel post Brexit
11 January 2021
The ISA has decided to extend the terms of the General Permit under section 49A of the Securities Law, so that, post Brexit, certain regulated entities in the United Kingdom (UK) will be entitled to apply for a General Permit for the provision of brokerage services to clients in Israel.
Dear friends and clients,
Pursuant to Section 49A of the Securities Law, no offer of securities trading services (e.g. execution only services or brokerage services) through a securities trading system that is not managed by a stock exchange licensed in Israel may be made unless a permit has been issued by the Israeli Securities Authority (the “ISA“).
According to a new ISA position, investment firms or credit institutions (as defined in section 2(1) of the UK Regulation No 600/2014 (“Regulations“)), authorized under Section 4A of the UK Financial Services and Markets Act 2000 to conduct regulated activities with respect to Investment Services and Activities (as defined in the Regulations) in the United Kingdom, and have head offices located in the United Kingdom, are now eligible to apply for a General Permit.
Pursuant to the General Permit conditions, applications for a General Permit are generally expected to be granted based on the applicant’s satisfaction of the relevant conditions (e.g. being licensed as a Securities Dealer).
Our firm has extensive experience in representing investment firms or credit institutions applying for brokerage permits. We will be happy to be at your service and assist with any issue in the area, as well as in any questions or clarifications.
Corporates, Securities and Capital Markets
Herzog Fox & Neeman