Supervisor of Banks adopts custody services recommendations
The Supervisor of Banks announced today the adoption of the recommendations of the Joint Committee to Regulate Custody Services in Israel's Capital Markets.
The Supervisor of Banks announced today the adoption of the recommendations of the Joint Committee to Regulate Custody Services in Israel's Capital Markets. The Committee consisted of representatives of the Israel Securities Authority, the Banking Supervision Department of the Bank of Israel, the Ministry of Finance's Capital Markets Division, and the Israel Tax Authority.
The Committee's recommendations, which were published in January 2012, were intended to establish basic norms of custody services among financial intermediaries in Israel.
Custody services are crucial financial services in the capital markets. They include safekeeping of securities for the security owners, as well as other associated services such as clearing, and handling corporate actions.
The Supervisor of Banks explained that banking corporations which provide custody services to customers will be required to meet the high standards which are generally accepted in major economies worldwide. It is expected that implementing the standards will improve protection of Israeli investors and reduce the probability of operational failures.