Sources inform ''Globes'' that the Ministry of Finance Capital Markets, Insurance and Savings Division is making progress in the setting up of a pension clearing house through the establishment of a clearing system for pension savings through the Banking Clearing Center.
Creation of the pension clearing system will enable the systematic and smooth transfer of the public's pension savings between the distribution system and pension products producers. This is a key part in the development of a pension advisory system in Israel.
So far as is known, the Banking Clearing Center has already submitted a plan to the Ministry of Finance. To move forward on the program, the Capital Markets, Insurance and Savings Division in a few days is due to ask the Antitrust Authority to allow banks and pension providers to collaborate on this issue. This is because the planned system will cover the activities of both banks and pension providers - insurance companies and pension and provident funds - equally and with no preference to any one party over another.
The pension clearing system is a platform for carrying out transactions and transferring money between different parties in the pensions market. Until now, prior to the banks' entry into the pension advisory field, clearing was handled on a case-by-case basis and no new players could enter the market. This created complexity and a lack of uniformity in the market.
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2009
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