Israel securitisation proposal fails to deliver

Author: Lizzie Meager | Published: 8 Dec 2015

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 the point.

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...