Accompaniment for credit service providers
On July 18, 2016, the Knesset approved the Financial Supervision bill (Regulated Financial Services), 2016.
The new law deals with the regulation of the regulatory structure for the supervision of non-institutional financial services and in fact divides the sector engaged in the provision of financial services into two:
- Providing non-bank credit including loans, discounting checks and more.
- Forex transaction.
The public engaged in the provision of credit will henceforth be called: Credit Service Providers.
The public dealing in foreign exchange will continue to be called currency service providers.
The new law sets requirements for dealers in the provision of financial services, restrictions on business management and reporting obligations.
The law stipulates a licensing obligation for the purpose of engaging in the field of providing financial services, which are divided into two: providing credit and providing service in a financial asset. The law also distinguishes between two levels of licensing: a “basic license” for service providers with low turnover and an “extended license” for service providers with a high turnover.
The law specifies the conditions for obtaining a license in section 15 of the law when the supervisor is given discretion not to grant a license even to an applicant who has met the requirements specified in the law, insofar as it is not appropriate to provide financial services for reasons of public good.
The Supervisor is also given the authority to revoke or suspend a license if the conditions specified in section 23 of the law are met, provided that the licensee has been given an opportunity to make his claims.
The date of entry into force of the law in relation to those who are engaged in providing credit on 1.6.17 and in relation to those who are engaged in providing financial asset service on 1.6.18.
In April 2017, a licensing procedure for credit service providers was published, the purpose of which is to establish provisions regarding the submission of an application for a license for the practice of providing credit