Bank Leumi (TASE: LUMI) recently applied to the Ministry of Finance Capital Markets, Insurance and Savings Division for a pension advice license. The bank filed the application after completing the sale of its employees' provident fund.
According to Bank Leumi's financial report, published yesterday, it is ready to begin providing pension advice at branches this year. Sources predict that the bank will enter the pension advisory market this summer.
Four banks currently have a pension advisory license: Union Bank of Israel (TASE: UNON), Mizrahi Tefahot Bank (TASE:MZTF), First International Bank of Israel (TASE: FTIN1;FTIN5), and Israel Discount Bank (TASE: DSCT). Both Bank Leumi and Bank Hapoalim (TASE: POLI; LSE:80OA), which face pension advice restrictions that do not apply to the smaller banks, have not yet entered the sector.
Bank Leumi's application came after a long delay in the solution for its employees' provident fund. The application was filed a few days after Bank Hapoalim completed the sale of its provident funds, including Gadish. Bank Hapoalim expects to complete the sale of Bank Massad and Bank Yahav for Government Employees Ltd. within a few days, only after which it can begin providing pension advice.
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2008
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