חוק השקעות משותפות בנאמנות (תיקון מס' 28), התשע"ז-2017Law on Joint Investment in Trust (Amendment No. 28), 2017 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Joint Investment Trust Law (Amendment No. 28), 2017 (hereinafter – the Amendment), was passed in second and third reading on 24 July 2017. The Amendment establishes the conversion of the exchange-traded note from a debt certificate into a unit in a mutual fund, to be called an exchange-traded fund (ETF), which is a financial product based on managing others' money in a manner intended to achieve a specific result in accordance with the investment policy chosen by the mutual fund. An ETF will be a tracking fund whose purpose is to achieve results derived from the rate of change in the price of an index or commodity. Various provisions were also established authorizing the Minister of Finance and the Securities Authority to set out, in regulations or rules, provisions that will enable the operation of ETFs in light of their unique nature as a closed fund with characteristics of an open fund. In addition, transitional provisions were established regarding the conversion of existing exchange-traded notes into funds in several installments, as well as provisions regarding the taxation aspects arising from the transition of a debt certificate into a unit in a mutual fund.

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