Delegate Authority to ISA to Supervise Credit Card Companies
Israel’s Government Approves Major Overhaul of Credit Card Industry Regulations
The Israeli government has recently approved a new law that grants the Israel Securities Authority (ISA) authority to supervise credit card companies, marking a significant shift in the regulation of the industry. This law aims to promote competition and prevent excessive unnecessary regulation.
Key Provisions
- Delegates authority to ISA to oversee foreign payment service providers, including credit card companies
- Allows credit card companies to offer additional services, such as ATM services, currency conversion, and credit incidental to a payment transaction, without needing an additional license (subject to meeting certain criteria)
- Prohibits unreasonable refusal to participate in payment systems, promoting competition in the market
- Requires credit card companies to provide access to their payment accounts to other service providers
Benefits of the New Law
- Promotes fair and transparent business practices
- Increases transparency and competition in the market
- Encourages innovation and growth in the industry
Impact on Credit Card Companies
Credit card companies will be required to meet certain criteria, including having sufficient equity to back their credit operations. This will ensure that they are able to operate sustainably and provide fair services to customers.
ISA’s Role
The ISA will be responsible for ensuring that credit card companies comply with the new regulations. They will oversee the industry and take action against companies that fail to meet the required standards.
Commentary from an Expert
“The delegation of authority to the ISA is a significant step forward in our efforts to regulate the credit card industry in Israel,” said Adv. Anat Even-Chen, partner at Barnea Jaffa Lande’s Regulation Department. “We are confident that this will lead to greater transparency and competition in the market.”
Transition Provisions
The law includes transitional provisions for companies already operating in the market, allowing them time to adjust to the new regulations.
About Barnea Jaffa Lande’s Regulation Department
Barnea Jaffa Lande’s Regulation Department is experienced in helping businesses prepare for regulatory changes and advises companies on compliance with Israeli laws and regulations. They can help credit card companies navigate the new law and ensure they are in compliance with the required standards.