The Capital Market, Insurance and Savings Authority published today (Wednesday) draft instructions regarding the implementation of the provisions of the Financial Information Service Law that will apply to insurance companies and companies that manage provident funds and pension funds in their activity as a source of financial information.
The “Open Banking” reform, including the Financial Information Service Law, is intended to allow financial information service providers who have received an appropriate license and power of attorney from the customer to contact financial entities on behalf of the customer in order to receive information about loans granted to him, through a secure online API interface. This will allow the financial information service provider to offer the client various services such as cost comparison and advice on financial conduct.
The draft instructions relate to the conduct of the institutional bodies in their activity as a source of financial information: rules regarding how to access the financial interface system, detailing the types of services that will be provided through it, management of authorizations by the entities that are sources of financial information, determining a measure of the quality of the service that will be provided by the sources of financial information, and managing information security risks and cyber. The instruction is based on the Berlin standard which is applied by the banks as sources of information, in order to produce a uniform and simple standard in the Israeli financial market and to facilitate the advancement of the “open banking” reform.