Pursuant to Amendment 23 to the Joint Investments in Trust Law 5754-1994 ("Amendment 23"), concerning the regulation of offers of units of foreign funds in Israel, a foreign fund may offer units to the public only after it obtains a permit and meets the conditions defined in the Joint Investment Trust Regulations (Foreign Fund Unit Offerings) 5775-2015 ("the Regulations"). The Regulations determine the requisite features of foreign funds that make such offerings, the conditions that a foreign management company must meet before offering units of the foreign fund in Israel, and obligations that will apply to a foreign management company who makes such offers.  

Note that the ISA does not inspect the fund's prospectus, and neither does it regulate the foreign fund or its manager. Investors who are considering a purchase of units or shares of a foreign fund must take into consideration that these funds are not subject to the laws and regulatory regime that apply to mutual funds in Israel.

According to the Regulations, a foreign management company must appoint a representative in Israel as a liaison with the ISA and the unit owners in Israel for the purpose of transferring orders, notices, or questions from the ISA or the unit owners to the foreign management company, and for furnishing reports, documents, responses, and answers from the foreign management company to the ISA or the unit owners.

See the following links for information on the foreign funds that have been issued a permit by the ISA, FAQs, circulars relevant to the foreign management companies, and a file for foreign management companies on how to register in the MAGNA system and appoint a representative in Israel. 

Foreign management companies who would like to apply for a permit are advised to initiate a preliminary procedure before submitting their formal application as follows:

1. The foreign management company submits a preliminary draft of the fund's appendix to the ISA by email for review by ISA staff.

2. After the foreign management company receives the ISA's comments and makes the necessary revisions to these documents, the foreign management company formally submits a permit application on the MAGNA system. The foreign management company uploads Form 201, which includes the following documents:  

a. A declaration of the foreign management company as required by the Regulations;

b. A declaration regarding involvement (or no involvement) in any legal proceedings with the regulator in the foreign management company's country of origin;

c. A prospectus of the fund and the KIID;

d. Bank guarantee (see sample here).

3. The foreign fund's appendix is referred to the ISA Prospectus Committee, which issues permits to foreign funds.

For further information, please contact our legal team:

Attorney Maya Gerty Gilboah, 02-6556495, mayag@isa.gov.il

Attorney Danielle Shimonov, 02-6594323, daniellesh@isa.gov.il

Attorney Liat Samin, 02-6556489 , liats@isa.gov.il