JERUSALEM - It's final: The reform in the financial markets is underway. Sixty-two Knesset members voted Monday evening for the Bachar Reform, with just one opposing and another abstaining.
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The plan will open up the banking industry and create competition.
The vote was considered a victory for Finance Minister Benjamin Netanyahu,
over both the Labor Party
and the banks, both of whom fought the bill tooth-and-nail.
Benefits for all
As voting ended, Netanyahu was clearly pleased: said, “The reforms to the financial and banking industries that became law tonight will benefit every single citizen of this country, and will put an end to the high level of centralization amongst the large banks.”
In addition, Netanyahu praised members of the Bachar Committee, and said they made an important contribution to changes every Israeli citizen has been waiting years for.
Main points
- Bank Leumi and Bank Hapoalim will sell maintenance of providence funds within three years and their maintenance of mutual funds within four years.
- Medium sized banks, will have from 8-to-16 years to sell off similar holdings.
- Banks will charge a compensation fee to manufacturers of financial products such as providence funds, pensions and mutual funds.
- Life insurance: large banks will be permitted to sell life insurance after five years have passed from the time they sell off the relevant funds and have lowered their holdings in insurance companies to no more than 10 percent. Medium sized banks can sell life insurance no earlier than 2010.
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