Updates Regarding the Equity and Insurance Obligations of Licensees under the Investment Advice Law
19 January 2022
Client Update – Updates Regarding the Equity and Insurance Obligations of Licensees under the Investment Advice Law
On December 19, 2021, amendments to the Regulation of Investment Advice, Investment Marketing and Portfolio Management (Equity and Insurance) Regulations – 2021 came into force.
The new regulations grant licensees the discretion to choose the guarantee that would cover their liability for negligent acts or omissions towards a client (and, in Authorized Corporation, their liability for embezzlement as well).
The licensee must provide adequate guarantee to cover its liability through one or more of the existing alternatives in the regulations – Insurance, bank guarantee, deposit and securities deposit, in the extent it determines at its discretion and taking into account the characteristics of its activity.
Our firm accompanies a large number of Licensees under the Investment Advice Law and monitors the developments in the regulation of the field. We are at you service for any additional information regarding the amendments and the requirements of Licensees under the Investment Advice Law.
Head Of Regulation – Capital Markets & Securities
maidlerl@herzoglaw.co.il
Limor Tshuva | Associate
Capital Markets & Securities Regulation
tshuval@herzoglaw.co.il
