08.12.2010
 
Joint announcement by the Bank of Israel, the Ministry of Finance and the Securities Authority:
List of Criteria for Testing Fitness and Propriety by Supervisory Bodies
 
 
The Bank Supervision Department of the Bank of Israel, the Capital Markets, Insurance and Savings Division of the Ministry of Finance and the Israel Securities Authority, each in the area under its supervision, regulate the activity of the entities operating in the financial and capital markets, which, among other things, act as financial mediators. As part of this regulation, the regulators engage in determining standards for assessing the fitness and propriety of those who wish to operate in the regulated areas.
In view of the structure and size of Israel's capital market and the fact that there are a number of regulators in the market, the three regulatory bodies, in coordination with the) Assistant Attorney General (Economic–Fiscal), have created a list of criteria for assessing whether those with controlling interest and office holders in regulated bodes, both candidates and those already serving, are fit and proper. If one of the categories specified in the document being published today applies, it will constitute a reason to question whether the individual is fit and proper.
The list includes twelve categories, including being convicted of a crime, being charged with a crime, being the subject of a criminal investigation or of substantive negative findings in legal proceedings or in an examination process, being the object of multiple and substantive complaints that were found to be justified, etc. It should be clear that this is not a closed list and that as part of an assessment of fitness by any of the regulators, other factors will be taken into consideration, including the severity of the event, the time that has passed since it occurred, its expected effect on the market and on public confidence, etc. The basic rights of the regulated person will also be taken into consideration.
The document of criteria for the assessment of whether an individual is fit and proper by the regulators has been approved and signed by the Supervisor of Banks Rony Hizkiyahu, the Commissioner of the Capital Markets, Insurance and Savings Professor Oded Sarig, and the Chairman of the Israel Securities Authority, Professor Zohar Goshen.
 
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