The licensing requirement applies both to individuals and entities engaged in investment advising, investment marketing and portfolio management activities. Individual investment advisors can be self-employed or employees of a licensed advisory firm or a [commercial] banking corporation. Portfolio managers are entitled to work solely as employees of licensed portfolio management firms.
Licensing of Individuals
An individual must meet the following criteria in order to apply for a license:
A. Be of at least 18 years of age;
B. Be a citizen or resident of Israel;
C. Has not been convicted of a crime (among the crimes stipulated in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law 5755-1995 (hereinafter – "the Law")
D. Successfully completed the professional exams administered by the ISA in the following subjects:
1. Securities law and professional ethics;
3. Statistics and finance;
5. Miktzohit A'
6. Miktzohit B' (for portfolio management applicants only).
* For special test accommodations – click here.
E. Successfully completed an internship (six months for investment advisors and investments marketers and nine months for portfolio managers);
F.All licensed members of the profession must secure professional indemnity insurance for the minimum sum stipulated in the regulations.
*Notwithstanding the conditions mentioned above, in special circumstances the ISA is authorized to grant exemptions from exams and internships under section 8A of the Law. To view the Exemption Criteria – click here.
Licensing of corporations
Only entities legally established in Israel are entitled to obtain a license. Applicants must comply with the following requirements:
A. It must undertake that it will employ only licensed individuals for the purpose of rendering investment advice, investment marketing or portfolio management services.
B. It must undertake that, to the best of the entity's knowledge, no individual has been convicted of one of the crimes stipulated in the law, or whose license has been either suspended or revoked, serve as an executive or director in it.
C. It fulfills the minimum capital requirements stipulated in the regulations.
D. It has secured insurance, a bank guarantee or deposit for the sum stipulated in the regulations.
E. Portfolio management firms are prohibited from engaging in underwriting and can only engage in investment advice, investment marketing, portfolio management and ancillary activities.
The ISA is entitled to withhold a license from an Individual or a corporation fulfilling all of the above requirements if it believes that circumstances exist, which render the applicant unfit to be licensed (fit and proper tests) or if a criminal investigation is being conducted against the them and also if such circumstances exist with regard to a director, executive, or controlling shareholder of the corporation.
Foreign Dealers Register
No license is required by a foreign dealer in providing services for clients of a licensed body upon the fulfilment of the conditions determined by the law. A foreign dealer and a licensed body who wish to operate in Israel are required to register to the ISA's Register of Foreign Dealers. Requests for registration to the Register of Foreign Dealers should be sent to: email@example.com .
 According to the Law