When requesting to provide investment consulting or investment marketing or portfolio management to the greater Israeli market one need to take under advisory that the trade of investment is a highly regulated one in Israel.
According to the law which regulates the above mentioned actions one is able to provide these services without having the necessity of acquiring a license if the following terms are met:
- The investment advisory or portfolio management is provided to no more than 5 clients per calendar year (The advisory is permitted only to individuals and not to a corporation).
- The investment advisory is permitted to be given in the general media.
- The investment advisory is given to a sophisticated client:
Definition of a sophisticated client:
- Total value of all assets (cash, deposits, financial assets) exceeds 12M NIS (around 3M CHF).
- The client has proven skills in the capital market or was employed for at least one year in a professional role requiring expertise in the capital market.
- Has performed at least 30 transactions in average per quarter in the previous four quarters prior to his consent.
- At least two of the above-mentioned terms must be met.