The Regulation of Investment Advice, Investment Marketing and Investment Portfolio Management Law of 1995 requires that corporate licensees for investment advice and marketing services be incorporated in Israel.
"Must have license
2. (a) A person shall not engage in investment advising, except if he holds an advising license; [...]
(b1) A person shall not engage in investment marketing, except if he holds a marketing license; [...]
(b2) Notwithstanding the provisions of subsection (b1), an institutional body may engage in investment marketing in respect of financial assets that are managed by it or that were issued by it and only of those, even if it does not hold a marketing license; [...]
(c) Notwithstanding the provisions of subsections (a) and (b1), a portfolio management licensee may also engage in investment advising or in investment marketing, and in only one of these; however, if it is a body corporate connected to an institutional body or to a marketing licensee it shall not engage in investment advising; the provisions of this Law that apply to an advising licensee shall apply to a portfolio management licensee who engages in investment advising not in connection with the management of portfolios, and the provisions of this Law that apply to marketing licensees shall apply to it when it engages in investment marketing.
[...]
Conditions for granting an advising license and a marketing license
7. (a) The Authority shall grant an advising license or a marketing license, as the case may be, to an applicant who is an individual, if it finds that the following hold true for him:
(1) he is an adult; (2) he is a resident of Israel or proved that – even though he is not a resident of Israel – he is able to comply with all the provisions under this Law and that they can be enforced on him; [...]
(b) The Authority shall grant an advising license or a marketing license, as the case may be, to an applicant who is a partnership, if it finds that the following hold true for it: (1) the partners are licensees; (2) the partnership assumed the obligation that all persons who will engage in investment advising or in investment marketing in its name will be its employees or partners who hold appropriate licenses, or that at least one employee or partner holds an appropriate license and that the others, who will act as aforesaid in its name, are foreign dealers who may, under the provisions of section 10B, engage in investment advising or in investment marketing;
(3) the partnership complies with the conditions and amounts set in regulations in respect of insurance;
(4) the partnership assumed the obligation that it will not have as officer any person who it knows was convicted of an offense, and also not a person to whom applies a prohibition against serving as officer by virtue of means of enforcement said in section 52DDD of the Securities Law, imposed on him under Chapter Eight "D" of the Securities Law, under Chapter Seven "B" of this Law or under Chapter Ten "A" of the Joint Investment Trusts Law during a period in which the said prohibition applies to him.
(4) the partnership undertook that it shall not have as officer any person who it knows was convicted of an offense, and also not a person to whom applies a prohibition against serving as officer by virtue of means of enforcement said in section 52DDD of the Securities Law, imposed on him under Chapter Eight "D" of the Securities Law, under Chapter Seven "B" of this Law or under Chapter Ten "A" of the Joint Investment Trusts Law – during the period in which the said prohibition applies to him.
(c) The Authority shall grant an advising license or a marketing license, as the case may be, to an applicant that is a company, if it finds that the following hold true
for it:
(1) the company assumed the obligation that all persons who will engage in investment advising or in investment marketing in its name will be its employees who hold appropriate licenses, or that at least one employee holds an appropriate license and that the others, who will act as aforesaid in its name, are foreign dealers who may, under the provisions of section 10B, engage in investment advising or in investment marketing;
(2) the company assumed the obligation that it will not have as officer any person who it knows was convicted of an offense, and also not a person to whom applies a prohibition against serving as officer by virtue of means of enforcement said in section 52DDD of the Securities Law, imposed on him under Chapter Eight "D" of the Securities Law, under Chapter Seven "B" of this Law or under Chapter Ten "A" of the Joint Investment Trusts Law during a period in which the said prohibition applies to him.
(3) the company has an equity that is not smaller than the amount that will be prescribed by regulations;
(4) the company holds insurance, bank guaranties, deposits or securities in amounts, in proportions and on conditions that will be prescribed by regulations;
(5) the company does not engage in underwriting.
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Definitions
10A. In this Chapter –
"foreign permit" – a permit to engage in the provision of services in a foreign state under the Law of that state;
"foreign individual" – an individual who is not an Israel resident and who holds a foreign permit;
"foreign dealer" – a foreign individual or a foreign body corporate;
"foreign body corporate" – a body corporate for which all the following hold true:
(1) it was incorporated abroad;
(2) control of it is held by persons who are not Israel residents; for this purpose holding or acquiring securities together with others shall not be deemed holding with Israel residents;
(3) it holds a foreign permit;
(4) its activity under the foreign permit is generally carried on outside Israel;
"licensed body corporate" – including a bank and also another banking corporation that under the Banking (Licensing) Law is allowed to engage in investment advising or
in investment marketing.
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Provision of services of a foreign dealer through a licensed body corporate
10B. (a) Notwithstanding the provisions of section 2, a foreign dealer may engage in the provision of services to clients of a licensed body corporate even without an
appropriate license under this Law if the conditions specified below are complied with and subject to the provisions of this Chapter:
(1) the foreign dealer and the licensed body corporate contracted a written agreement for provision of the said services;
(2) the foreign permit held by the foreign dealer allows it to engage – in the state where the permit was issued – in the provision of said services, and if it is a foreign body corporate – that those engaged in its name in the provision of said services also hold aforesaid foreign permits;
(3) the licensed body corporate may itself provide the services to its clients under the provisions of this Law;
(4) the foreign dealer and the licensed body corporate are registered in the Register of Foreign Dealers under the provisions of Article Three.[...]" (Regulation of Investment Advice, Investment Marketing and Portfolio Management Law (10.8.1995), last amended 10.1.2019, Sections 2, 7, 10A and 10B [unofficial translation])
Regulation of Investment Advice, Investment Marketing and Portfolio Management Law (10.8.1995), last amended 10.1.2019, Sections 2, 7, 10A and 10B
[<a href="https://www.nevo.co.il/law_html/law01/P181K4_001.htm">Law</a>],[<a href="https://www.isa.gov.il/sites/ISAEng/1485/Documents/IsaFile_2912142.pdf">Law_Eng</a>],[<a href="https://www.oecd.org/israel/49864025.pdf">OECD</a>]