The bank's role in an investment advice scandal weighed on its application.
Sources inform ''Globes'' that Supervisor of Capital Markets, Insurance and Savings Yadin Antebi has decided not to put restrictions on the pension advisory license for Bank Leumi (TASE: LUMI) despite the bank's involvement in an investment advice scandal. The decision removes the main obstacle to the bank's entrance into the pension advice market.
The Ministry of Finance still has to approve the bank's application for a pension advisory license, which was submitted three months ago. Following Antebi's decision, the license will probably be granted shortly.
The Ministry of Finance said in response, "Bank Leumi is due to complete the sale of its mutual and provident funds during July 2008. At this point, the bank will have met the precondition mandated by the Bachar committee legislation for the granting of a pension advisory license. As part of the review of the bank's application for the license, the supervisor of capital markets examined the repercussions of the bank's statement in the indictment filed against it regarding the financial advisor on the bank's entry into the pension advisory market. After thoroughly reviewing the material, and taking into account the fact that other regulators had decided not to restrict the bank's activity in other fields (banking, financial advice, and portfolio management), the supervisor of capital markets announced that he would not restrict the bank's pension advisory license."
Published by Globes [online], Israel business news - www.globes-online.com - on July 2, 2008
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