Israel's three financial regulatory agencies, the supervisor of banks at the Bank of Israel, the Capital Markets, Insurance and Savings Division at the Treasury, and the Israel Securities Authority, jointly published on December 8th a set of uniform criteria to establish "fit and proper" standards for owners and senior executives of asset-management firms. Because the majority of such firms are now active in various fields and hence come under the supervisory purview of more than one body, the regulators are being obliged to co-operate more closely. The new criteria are one product of this effort, ensuring that owners and managers at pension and provident funds, insurance companies, mutual funds and portfolio management firms are all subject to the same rules.

The twelve criteria include being found guilty of relevant (that is, white-collar) crimes, as well as being charged with such violations-or even, in some cases, merely being under investigation. Similarly, administrative settlements or other civil punishments-such as fines imposed for violations of relevant laws or regulations-and the use of false or misleading information are all grounds for possible disqualification, or rejecting a person's candidacy for a particular post.

The regulators stress that the published list of criteria does not represent their final word on this subject, and that in every instance weight will be given to factors such as the seriousness of the crimes committed or charged, their intensity and circumstantial considerations.