The Finance Ministry will set a ceiling between the lowest and the highest fees.
Sources say that the Ministry of Finance Capital Markets, Insurance and Savings Division will limit management fees charged by provident funds, believe sources ahead of the ministry plan for dealing with high management fees.
Market sources believe that the Ministry of Finance will set a limit of 0.5-0.6% between the lowest and the highest fees charged by a fund's management firm. The ministry will allow a financial institution to set the maximum management fee for its provident funds, and the ministry will limit the maximum discount that the institution can offer its clients.
In addition, financial institutions will be required to improve their transparency. Companies that manage the public's savings will be required to disclose the different rates of management fees they charge, from the lowest charged to organized groups, to the highest charged private clients with low rates of savings.
Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2010
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