Israel Discount Bank (TASE: DSCT) has been given a pension advice license by the Ministry of Finance. Supervisor of Capital Markets, Insurance and Savings Yadin Antebi recently reviewed the bank's preparations to begin offering the service and found them satisfactory. The new pension advisory service will be headed by former Discount Gemel general manager Roi Ofir.
Three banks are currently offering pension advisory services: Union Bank of Israel (TASE: UNON), Mizrahi Tefahot Bank (TASE:MZTF), and First International Bank of Israel (TASE: FTIN1;FTIN5). Discount Bank is the largest of all the banks to be given a pension advisory license so far. It is likely to be followed by First International subsidiary Bank Otsar Hahayal, and Discount Bank subsidiary Mercantile Discount Bank.
Banking sector sources believe the entry by Discount Bank will create the necessary critical mass in the bank-based pension advisory service system. In addition to being the largest bank to be granted a license so far, Discount Bank also has a more extensive network of branches and a stronger presence in the retail sector than the other mid-sized banks. It has already trained 120 consultants, some of whom will focus on pension advice only, rather than investment advice as a whole.
Bank Hapoalim (LSE: BKHD; TASE: POLI), and Bank Leumi (TASE: LUMI) are now the only banks without a pension advice license.
Published by Globes [online], Israel business news - www.globes.co.il - on February 19, 2008
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