Chapter 9 (Insurance and Pension Savings Intermediation), excluding Section 36 (regarding the prohibition of unreasonable refusal to contract) from the Economic Plan Bill (Legislative Amendments to Implement Economic Policy for the 2023 and 2024 Budget Years), 5783-2023 [Split pursuant to Section 84(b) of the Knesset Rules of Procedure]

Institutional entities, such as insurance companies or pension funds, will be prohibited from unreasonably refusing to enter into an agreement with a pension advisor or terminating an existing engagement. An unreasonable refusal will be defined as a refusal to contract under terms similar to those offered to other advisors, or a refusal based on the number of the advisor's clients, the characteristics of the clients, the volume of their funds, or the amount of commissions charged by the advisor. The Commissioner of Capital Markets, Insurance and Savings, with the approval of the Knesset Finance Committee, may define additional circumstances that will be considered an unreasonable refusal. Institutional entities will also be prohibited from discriminating between pension advisors in the provision of services, including access to their systems. Payment of a distribution commission at a different rate will not be considered discrimination. The Commissioner, with the approval of the Finance Committee, may establish provisions regarding circumstances and criteria for providing services, such as accessibility, frequency, and availability, and deviation from these will be considered discrimination. In the event of a violation of these rules, the Commissioner may impose a monetary sanction on the institutional entity. The sanction will be imposed if the institutional entity refused to contract with a pension advisor or terminated an engagement with one under circumstances considered unreasonable, or if it discriminated between advisors contrary to the Commissioner's instructions.

Source: חומר רקע