vLex Israel

Books and Journals

  • Regulation of Broker-Dealer Activity

    Earlier this month, the Israel Securities Authority published a legislative memorandum aimed at regulating the broker dealer field in Israel. While the activity of most financial intermediaries is regulated and supervised (e.g., portfolio managers, investment advisors, underwriters, and distributors), the activity of brokerages and dealers is not supervised or subject to specific regulation. (See Article)

    Dec 1, 2020 9:32 AM

  • Payments to Employees Absent from Work Due to Mandatory Quarantine

    Under a statutory amendment to the Economic Assistance Program Law (Novel Coronavirus) (Temporary Order), an employee must be paid salary during absences from work due to mandatory quarantine. The employer and the State will split the cost of such salary. (See Article)

    Dec 1, 2020 7:32 AM

  • Second Phase of Financial Assistance Grants for Third Sector Kicks Off

    Last May, the Social Affairs Division in the Accountant General Department in the Ministry of Finance published a number of steps designed to assist third-sector organizations (’Amutot’ and public benefit companies), and civil society. Several days ago, the second phase of financial assistance commenced. This phase expands some of the eligibility conditions for a grant… (See Article)

    Nov 25, 2020 7:32 AM

  • New Investment Products: Hedged Mutual Funds and Hedged Mutual Funds of Funds

    With the goal of expanding the public’s investment options, the Israel Securities Authority published in February 2020 a first draft of a document for public comments. The document details the core characteristics of two new financial products: a hedged mutual fund and a hedged mutual fund of funds. (See Article)

    Nov 23, 2020 7:32 AM

  • Repurchasing of Shares Is Not a Tax Event for Remaining Shareholders

    In a bold step, the Haifa District Court rejected the Israel Tax Authority’s position on a company’s repurchasing of shares, and in effect split with a ruling of the Tel Aviv District Court, who considered a similar issue several years ago. (See Article)

    Nov 19, 2020 7:32 AM

  • ISA: Expanding Disclosure on Independent Committees

    The Israel Securities Authority (ISA) will soon require public companies to disclose details about independent committees tasked with overseeing transactions with controlling shareholders. The staff position, published in late October, was put together due to the increased need for supervision and oversight of decision-making processes in transactions between public companies and their controlling shareholders. This… (See Article)

    Nov 18, 2020 7:32 AM

  • COVID-19, From Crisis to Opportunity

    Much has been written about instability in the corporate world brought on by COVID-19. Alongside the health risks caused by the virus, it has also resulted in a serious economic crisis at every level. Parallel to these crises, this challenging period is also a call to executives and officers. Uncertainty and despair can serve as… (See Article)

    Nov 4, 2020 7:32 AM

  • COVID-19 does not justify breach or deviation of a contract When Its Arrival in Israel Was Foreseeable

    An Israeli court recently rendered an interesting ruling on the impact of COVID-19. The case is question involved the lease agreement for the operation of a hotel. The lease agreement, executed in February 2020, provided payment of rental fees for the month of March, but payment for the months of April and May had not… (See Article)

    Nov 3, 2020 7:32 AM

  • Israel M&A tracks global deal downturn in wake of crisis - Deal activity fell dramatically in 2020, but Q3 shows signs of recovery

    Global dealmaking slowed dramatically in 2020, as the world grappled with the health, economic and political consequences of the COVID-19 pandemic. Lockdowns hobbled economies across the globe, driving deal value and volume down to levels not seen since the global financial crisis. (See Article)

    Nov 2, 2020 7:32 AM

  • An Urban Renewal Project Agreement Is Not Transferrable

    In urban renewal projects, residents or owner’s rights holders select the company with whom they are willing to embark upon this long journey, based on relationship of trust and competence. The trust required leads both parties to execute a binding agreement. Understandably, residents expect the company which whom they have contracted with to remain unchanged… (See Article)

    Oct 30, 2020 7:32 AM

  • Israeli Government Encourages Companies to Publish Corporate Responsibility Reports

    A recently launched government program aims to encourage companies to publish social responsibility reports, or ESG (environmental, social, and government) responsibility reports. The Ministry of Strategic Affairs in the Prime Minister’s Office announced the launch of the “Impact Nation” program, as part of a broad move to promote publication of positive economic information regarding Israeli… (See Article)

    Oct 28, 2020 7:32 AM

  • The Legal and Business Impacts of the Israel – UAE “Abraham Accords”: A Historic Opportunity for Bilateral Trade and Commerce

    On September 15, 2020 the United Arab Emirates (the “UAE”) and the State of Israel officially signed the “Abraham Accords Peace Agreement: Treaty of Peace, Diplomatic Relations and Full Normalization Between the United Arab Emirates and the State of Israel” (the “Abraham Accords”). The Abraham Accords were officially announced and jointly issued on August 13, 2020 by H.H. Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Israeli Prime Minister Benjamin Netanyahu, and U.S. President Donald J. Trump. (See Article)

    Oct 26, 2020 5:32 PM

  • Decentralized Finance (DeFi) –The Future of Finance?

    The first cryptocurrency, Bitcoin, is still the most well-known application of blockchain. However, this technology has since rapidly evolved and expanded in many other areas. The initial hope with Bitcoin was to make both money and payments decentralized and universally accessible. Although Bitcoin failed to live up to this promise, decentralized finance based on blockchain… (See Article)

    Oct 21, 2020 9:08 AM

  • Israel Follows Europe’s Lead on Privacy Shield

    Israel’s Privacy Protection Authority recently announced that Privacy Shield can no longer be relied on for data transfers between Israel and the United States. Israel did not have a direct Privacy Shield arrangement with the U.S., instead permitting the many Israeli companies that exchange data with their American counterparts to rely on a provision of its Privacy Protection Regulations that allows for transfers of data to any country that receives data from the EU under the same terms of such transfer... (See Article)

    Oct 14, 2020 6:32 AM

  • Employment: Paid Sick Leave for Time In Quarantine

    Yesterday the Court granted the State’s request to extend the period during which employees may use paid sick leave for time in quarantine until October 28, 2020.     As you may remember, the Supreme Court repealed an order from the Ministry of Health, according to which a sweeping medical certificate was given to employees… (See Article)

    Oct 5, 2020 6:32 AM

  • Japan, the Land of the Rising Sun, and Interest in Israeli Hi-Tech Companies

    2014 was a good year for the Israeli-Japanese economic relationship. Viber’s USD 900 million acquisition by Japanese giant Rakuten and the R&D cooperation agreement between Japan and Israel marked the beginning of growing interest and a successful relationship between the two distinct countries. (See Article)

    Oct 2, 2020 6:32 AM

  • Israel’s Second Lockdown: A Guide for Employers

    The lockdown entered in?to effect on September 25, 2020, at 14:00, and is expected to continue until October 10, 2020. It is possible at the end of this period the lockdown will be extended. We have prepared an in-depth update for employers on the relevant topics. (See Article)

    Oct 1, 2020 4:32 PM

  • Coronavirus in Israel – Getting Your Business Seen as an Essential Service (Update 25.9.20)

    In accordance with the regulation approved today and until October 10th (subject to any extension) only business listed in the essential businesses list are allowed to continue and operate in the place of business. In addition activities essential for the remote operation of the business may be performed at the place of business. (See Article)

    Sep 27, 2020 5:46 AM

  • Updates Regarding the Upcoming Lockdown in Israel

    A nationwide lockdown in Israel is to take effect on Friday, September 18, 2020, from 2 p.m., to last for at least 14 days, (the restrictions may be extended, in full or in part, as determined by the Israeli government). While the regulations are currently pending final approval by the Knesset’s Constitution, Law and Justice… (See Article)

    Sep 21, 2020 6:32 AM

  • The Ultimate Guide to eDiscovery

    This has opened the door to an era of massive discovery of thousands different kinds of documents of between the parties (Word documents, PDFs, Excel spreadsheets, emails, photos, and audio files), which was uncommon in the days of paper and binders. Thus, reviewing the documents provided by the other party, analyzing them, and identifying the… (See Article)

    Sep 16, 2020 6:32 AM

  • Israel and the UAE: An historic opportunity

    On 28 August 2020, President His Highness Sheikh Khalifa, President of the United Arab Emirates (the UAE), issued Federal Decree Law Number 4 of 2020, abolishing a ban on business and trade dealings with Israel that had stood since 1972. In doing so, the UAE has become the first Gulf nation to normalise its relations with Israel and only the third Arab nation to do so, alongside Egypt and Jordan. Law Number 4 follows the Abraham Accord announced only a few weeks ago and the speed with which relations have thawed has surprised and delighted businesspeople in both jurisdictions: Businesses in the UAE can now enter openly into direct commercial agreements with their Israeli counterparts, to import, exchange, possess and trade in Israeli products in the UAE and to trade in them. Please see full Publication below for more information. (See Article)

    Sep 9, 2020 6:32 AM

  • Israel Securities Authority Publishes Sentencing Guidelines for Administrative Procedures

    For the first time, the Israel Securities Authority has published Sentencing Guidelines for Administrative Procedures which contain the considerations guiding its determination of sanctions for individual violators and corporations in an administrative procedure. (See Article)

    Sep 4, 2020 6:31 AM

  • Employers Are Now Required to Publish Wage Gaps between Women and Men

    According to a new amendment to the Male and Female Workers (Equal Pay) Law, employers must publish a yearly report outlining wage gaps between female and male employees.   The amendment provides that certain employers (including public corporations with reporting requirements in accordance with the Securities Regulations), as well as private employers with more than… (See Article)

    Sep 2, 2020 6:32 AM

  • Israeli M&A players take note, the Warranty & Indemnity (W&I) Insurance market has matured

    We have seen continued increase in the use of W&I insurance, particularly in Private Equity backed deals, and across the spectrum of transaction sizes. Insurance limits placed globally by Marsh in 2019 grew by 51% from 2018, and totalled $50.9 billion spread across 1,241 transactions. (See Article)

    Aug 24, 2020 6:32 AM

  • Israel Securities Authority: Distributors May Be Liable for the Contents of a Prospectus

    The Israeli Securities Authority has announced that distribution entities now may be liable for the contents of a prospectus.   In a staff position paper published in late July, the ISA changed the rules of the game in the underwriting field by determining that a distributor, or an entity associated with a distributor, that purchases… (See Article)

    Aug 14, 2020 6:31 AM

  • Using Open Source in Your Business? Beware the Fine Print

    The use of open source software is very common among developers. The concept behind open source is to allow access to many developers and promote collaboration between them.   A recent example is the website for the European Union’s Digital Response to COVID-19, which provides the public access to an ever-growing database of various open… (See Article)

    Aug 12, 2020 6:31 AM

  • Service Users Must Now Hold Hearing Procedures for Service Providers’ Employees

    The National Labor Court recently handed down an important ruling that concerns many employers in the market engaged with service provider companies.   The National Labor Court ruled that although there were no employee-employer relations between the employee and its employer in this matter, the service user still had to take part in the employee’s… (See Article)

    Aug 5, 2020 6:32 AM

  • It Is Time to Come Back Home: Investors Can Now Enjoy a Reduced Purchase Tax

    Israeli Minister of Finance Israel Katz’s plan to reduce purchase tax for investors has gone into effect.   Until now, under plans advanced by the previous Minister of Finance, Moshe Kahlon, for lowering housing prices and pushing investors out of the real estate market, the purchase tax for investors went up from 5% to 8%… (See Article)

    Aug 4, 2020 6:32 AM

  • Labor Law- An Important Update for Employers

    There have been a few recent updates to statutory provisions and administrative procedures regarding employees and employers during the COVID-19 outbreak. Here are the main points:   In a decision handed down on 27.7.2020, the Supreme Court, sitting as the High Court of Justice, repealed an order given on 4.2.2020 by Prof. Sigal Sadetzki, former… (See Article)

    Jul 30, 2020 6:32 AM

  • Apartment Sale Delayed because of COVID-19? Home Upgraders Eligible for an Extension

    Apartment owners experiencing difficulty selling their old apartments are entitled to a seven-month extension in which to sell, and the Israel Tax Authority will not count this period for tax purposes. (See Article)

    Jul 24, 2020 6:33 AM