The Bank of Israel has instructed the banks to enable the online transfer of securities portfolios
Supervisor of Banks Yair Avidan said: “The Banking Supervision Department has today set out an instruction that any customer interested in transferring his securities portfolio to another institution shall be able to do so online, and will not be required to go to the branch for this purpose. The aim of the instruction is to improve service to the customer by using online means, and to assist in increasing competition in the economy.”
The revision published today, which will come into force in 6 months, obligates the banks to allow customers to submit a request to transfer their securities portfolio online to any other financial institution, without the customer having to go to the branch.
The new instruction is intended to make it easier for a customer wishing to transfer his securities portfolio between various institutions, within the banking system or outside it, and to enable him to do so online. As such, the instruction is also intended to encourage competition in the brokerage market, following a recommendation made as part of the brokerage report published by the Israel Securities Authority and the Competition Authority, which raised the need to make it easier for customers to transfer their securities activity between institutions.