After Amendment 23 of the Joint Investment Trust Law 5754-1994 (hereinafter, “Amendment 23”), came into effect, a company that operates as a fund management company (hereinafter, "foreign fund manager") may offer units of foreign funds to the public in Israel.
According to Amendment 23, a foreign fund may offer units to the public if it has received a permit and meets the conditions set forth in the Joint Investment Trust Regulations (Foreign Fund Unit Offerings) 5775-2015 (hereinafter, “the Regulations”). The Regulations defined the characteristics of foreign funds that may be offered, the conditions to be satisfied by foreign fund managers applying for permission to offer units in Israel, and the obligations imposed on foreign fund managers that offer such units. For example, only foreign fund manager that has a relatively high asset value may offer foreign funds to the public in Israel. Such foreign funds must have a relatively high asset value and must specialize in investments outside Israel.
Note that the ISA does not review the prospectuses of these funds, does not supervise these funds or their managers. Investors considering a purchase of foreign fund units or shares should take into account the fact that these foreign funds are not subject to the laws and regulation that apply to mutual funds in Israel.
According to the Regulations, each foreign fund manager must appoint an Israeli representative to serve as liaison with the ISA and the owners of fund units in Israel in all matters involving transmission of orders, notifications, or questions from the ISA or fund unit owners in Israel to the foreign fund manager, and for the purpose of submitting reports, documents, responses, or answers from the foreign fund manager to the ISA or the unit owners.