[October 29, 2006] Securities Authority opposes Ayalon control of mutual funds Tweet (Israel Business Arena Via Thomson Dialog NewsEdge) The Israel Securities Authority will oppose giving Ayalon Holding Ltd. (TASE: AYAL) subsidiary Ayalon Financial Solutions Ltd. a two-year license for managing mutual funds. The Security Authority cites the conviction of Ayalon Holdings controlling shareholders chairman Levi Rahmani and Noga Rahmani in the 1991-92 insurance cartel case. Ayalon Financial Solutions handles Ayalon Holdings' capital market activity. Securities Authority chairman Moshe Tery wrote in his response to Ayalon Holdings' application for a license in April, The Securities Authority is considering recommending not granting Ayalon Financial Solutions a control permit for considerations of reliability. He added that the Securities Authority would not object to Ayalon Holdings reapplying for a license in 2008. Ayalon was summoned to a hearing to present its argument and comments on October 31. Ayalon said its dialogue with the Securities Authority was not about obtaining a license for a joint management company to be set up with Prisma Capital Markets Ltd. because that company will exclusively manage pension funds' assets. Adv. Ram Caspi represents Ayalon Holdings. Ayalon Financial Solutions CEO is Adv. Shlomo Ness. Levi Rahmani told Globes, The Security Authority's attitude is odd. The cartel was 15 years ago, and we were the smallest company involved. We were cleared of most charges, paid our fines, and completed the punishments imposed on us. We even reached an arrangement with the Ministry of Finance Capital Markets, Insurance and Savings Department, which allowed us to keep our pension and provident funds. The previous Supervisor of Capital Markets, Insurance and Savings Eyal Ben-Chelouche reached an arrangement with the Rahmanis, under which they kept their positions in Ayalon Holdings after their conviction in the cartel affair, but not their posts in its subsidiary, Ayalon Insurance. The Rahmanis therefore founded Ayalon Financial Solutions. Current Supervisor of Capital Markets, Insurance and Savings, Yadin Antebi, allowed Ayalon to buy provident and pension funds, and confirmed his predecessor's agreement after making some revisions. Even though Antebi allows the company to manage provident and pension funds, Tery refuses to grant the company a license to manage mutual funds. The Securities Authority declined to comment on the contradictory positions of the different regulators. Published by Globes [online], Israel business news - www.globes.co.il - on October 29, 2006 Copyright of Globes Publisher Itonut (1983) Ltd. 2006 Copyright 2006 Globes. Source : Financial Times Information Limited. [ Back To TMCnet.com's Homepage ]