Regulators in Israel last month unveiled a report aimed at
boosting its non-existent securitisation market, which they
believe will avoid the mistakes made in the 2008 subprime
mortgage crisis. But lawyers say the report has vastly missed
There are no laws or regulations governing securitisation in
Israel at this point, which goes some way in explaining why the
asset class has struggled to get off the ground.
The proposal, issued by the Bank of Israel, Ministry of
Finance and various other local regulators, deals with a broad
range of legal, tax, accounting, capital markets and financial
services supervisory matters, and includes a draft
securitisation law. But it deals exclusively with specific
types of securitisation and fails to mention others entirely,
including private issuances, which at this point lawyers see as
a more viable market.
"We were all expecting the...