Regulations for the the Regulation of Investment Advice and Investment Portfolio Management (Request for License, Examinations and fees), i

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1 The translation is intended solely for the convenience of the reader. This translation has no legal status and although every effort has been made to ensure its accuracy, the Authority does not assume any responsibility whatsoever as to its accuracy and is not bound by its contents. Only the original Hebrew text is binding and reader is advised to consult the authoritative Hebrew text in all matters which may affect them. Regulations for the the Regulation of Investment Advice and Investment Portfolio Management (Request for License, Examinations and fees), i By virtue of my authority under Section 5 of the the Regulation of Investment Advice and Investment Portfolio Management Law , (herein: the Law), in accordance with the Authority's proposal and in accordance with Sections 7, 8, 30, 41, and 42 of the Law, and with approval of the Knesset Finance Committee, I hereby enact the following: Chapter 1: Request for a License Request by an Individual 1. A request by an individual shall include inter alia these details and documents: (1) A declaration that the applicant is at least twenty one years of age, is a citizen or resident of Israel and has not been convicted of an offense; (2) Certification by the Authority that the applicant has passed the investment advice or the portfolio manager examinations, as appropriate, which are conducted in accordance with these Regulations, or has been exempted from them; (3) Certification by an instructor or the Authority as purported in Regulation 23(a); (4) Certification signed by a certified public accountant that the applicant holds insurance as required pursuant to Regulation 3 of the Regulations for the the Regulation of Investment Advice and Investment Portfolio Management (Equity and Insurance), 1997 (herein: "the Insurance Regulations"); (5) Photocopy of the fee payment voucher pursuant to Regulation 24(a). Request by a partnership 2. A request by a partnership for a consultancy license shall include inter alia these details and documents: (1) A declaration by the partners that they are license holders. (2) An undertaking that a person acting in the name of the partnership in providing investment advice shall be the partners or partnership employees that hold a license;

2 (3) Certification signed by a certified public accountant that the applicant holds insurance as required pursuant to Regulation 3 of the Insurance Regulations; (4) Photocopy of the fee payment voucher pursuant to Regulation 24. Request by a company 3. (a) A request by a company for a license shall include inter alia the following details and documents: (1) Certification signed by a certified public accountant that the company has the required equity pursuant to Regulation 2 of the Insurance regulations; (2) Certification signed by a certified public accountant that the company has insurance, a bank guarantee deposit or bond as required pursuant to Regulations 3 and 6 of the Insurance regulations; (3) Regarding a company requesting a portfolio manager's license - also a declaration by an office holder that the company operates solely in the field of portfolio management, investment advice or execution of stock market transactions and related actions and does not operate in the field of underwriting; (4) Photocopy of the fee payment voucher pursuant to Regulation 24(c). A company requesting a license shall submit to the Authority, together with its request, the following undertakings: (1) Regarding a company requesting an investment advice license - that whoever is engaged on its behalf in providing investment advice shall be company employees who are license-holders. (2) Regarding a company requesting a portfolio manager's license - that whoever are engaged on its behalf in portfolio management shall be company employees who are licensed portfolio managers; (3) That no person shall serve as an office holder if it is known to the company that the person has been found guilty of an offense.

3 Annual fee 4. (a) An individual, partnership or company who are holders of an investment advisors license or a portfolio manager's license shall pay to the Authority on 1 April each year an annual fee as detailed in Regulation 27. (c) An individual who is a license holder, who notifies the Authority in writing up until 1 April of each year of the suspension of his license for a period he requests shall be exempt from payment of the annual fee until the end of the said period; having given notification of renewal of his license, he shall pay the full fee for the year in which the license was renewed. Sub-regulation shall not apply to an individual whose license has been suspended by the disciplinary committee pursuant to Section 35(a)(4) of the law, for the duration of the suspension period. Chapter 2: Examinations Examination dates 5. (a) Investment advice and portfolio management examinations shall be carried out under the supervision of the Authority or on their behalf at least twice a year. The authority shall determine the location of the examinations, their dates, and dates for submission of requests to be examinamined; notice of same shall be published in the Official Gazette and in two daily newspapers of extensive circulation published in Israel in the Hebrew language. Requests to be examined 6. A request for examination shall be submitted to the Authority by the date published pursuant to Regulation 5; to the application shall be attached a photocopy of the fee payment voucher pursuant to Regulation 25(a). Examination subjects 7. (a) The subjects for examination for investment advice shall be as detailed in the First Annex. The subjects for examination for portfolio management shall be as detailed in the First and Second Annex. Examination arrangements

4 8. (a) The examinations shall be in writing. The examinations shall be in Hebrew, but the Authority is authorized to permit the candidate to answer the questions in languages to be determined. Examiners and Markers 9. (a) The Authority shall appoint examiners to write the examination questions, in general or for a particular examination or particular subjects, and shall set their remuneration. The authority shall appoint markers to mark the examination booklets, in general or for a particular examination or particular subjects, and shall set their remuneration. Examination results 10. (a) The results of the examinations shall be determined by the marker and shall be determined by him as a number of points between 0 and 100. (c) (d) A candidate receiving less than sixty points for a particular examination shall be considered as having failed that examination. Where the marker has set a mark of between fifty and fifty-nine, the examination shall be checked by an additional marker. Where an examination is checked by two markers and there is a difference of opinion between them, the higher of the two marks shall apply. Appeal 11. (a) A candidate is permitted to appeal the grade received for an examination; the appeal shall be submitted in writing, duly reasoned, within thirty days of publication of grades by the Authority, and shall be accompanied by a photocopy of the fee payment voucher pursuant to Regulation 25. (c) A candidate requesting to appeal the mark received is permitted to receive a photocopy of the examination booklet which is the subject of the appeal. The authority shall appoint markers to examine the appeal; the marker who checked the examination booklet which is the subject of the appeal shall not be appointed to check the appeal.

5 (d) (e) The Authority shall inform the appellant at to its decision within fortyfive days from the last date for submission of appeals. The appeal decision is final and cannot be further appealed. Certification of completion of examinations 12. A candidate who has passed all the examinations in respect of which he has not been exempted pursuant to Regulation 14, is entitled to receive, in accordance with a written application submitted to the Authority, certification of completion of the investment consultancy or investment portfolio examinations, as applicable. Supervisors (Amended 5764) 12a. (a) The Authority shall appoint supervisors for examinations in general or for a particular examination; the supervisors can also be persons who are not Authority employees. The candidate is required to obey the examination supervisor's instructions. Discipline (Amended 5764) 13. (a) Where a candidate breaches the discipline during the course of an examination, the supervisor is permitted to terminate his examination and to remove him from the examination hall; for this purpose "breach of discipline" - including the possesion of a book, list or other written material which has not been permitted, and also the possession of earphones, mobile telephone and any form of recording or communications device, disturbance of the regular process of the examination or talking, transfer of material to another candidate, responding to an approach by another candidate, making contact with another person or any other infringement of instructions given by the supervisor. Where a candidate breaches the discipline pursuant to sub-regulation (a), whether his examination has been terminated and he has been ordered out of the examination hall or whether warned without his examination having been terminated or his not having been removed from the examination hall, the Authority is permitted to disqualify his examination; the Authority is also permitted to prohibit him from taking the examination at other dates, whether in the same subject or other subjects.

6 (c) The Authority shall not reach a decision pursuant to sub-regulation unless it gives the candidate an opportunity to make representations. Exemption from examination 14. (a) An individual requesting a license shall be exempt - (1) From part of the "Securities Law and Professional Ethics" examination relating to securities law if he is an attorney, certified public accountant or can prove that he has studied courses in corporate law or securities law at a recognized institution; (2) From the Accounting examination if he is a certified public accountant or has an academic degree in accounting or can prove that he has studied an fundamentals of accounting course at a recognized institution; (3) From the Statistics and Finance examination if he is a certified public accountant or can prove that he has studied courses in Statistics and fundementals of Finance at a recognized institution; (4) From the Economics examination if is a certified public accountant or has an academic degree in economics or can prove that he has studies an Introduction to Economics course at a recognized institution. (5) From the Securities and Financial Instruments Analysis examination and from the Portfolio Management examination if he has a masters degree or doctorate in Business Administration or Economics majoring in finance, or can prove that he has studied courses in securities analysis, financial instruments and investment portfolio management. A request for exemption from an examination or part thereof pursuant to sub-regulation (a)(1) shall be submitted to the Authority accompanied by the relevant documentation and a photocopy of the fee payment voucher pursuant to Regulation 25(c). (c) In this regulation - "Studied" - Registered for a course, examined and successfully passed the examination; "Academic degree", "masters degree", or "doctorate" - from a recognized institution; "Recognized institution" - one of the following:

7 Intern's trainer (1) An institution in Israel which is recognized as a institute of higher education pursuant to the Higher Education Law, ; (2) A foreign institution which is recognized for the purpose of this provision, by a university or institute of technology in Israel which is a recognized institution in accordance with paragraph (1). Chapter Three - Internship 15. (a) An intern in investment advice shall carry out his internship with a holder of a license who has at least five years inexperience as an investment advisor or portfolio management or both, in Israel. An intern in portfolio management shall carry out his internship with a holder of a license in portfolio management of at least five years experience in portfolio management. Number of interns with one trainer 16. No more than two interns shall carry out their internship at the same time with a trainer, unless authorized by the Authority. Supervision of interns 17. (a) A person shall not be registered for internship in investment advise unless he has passed all the examinations in the First Annex or has received an exemption from them pursuant to regulation 14. A person shall not be registered for internship in portfolio management unless he has passed all the examinations in the First and Second Annexes or has received an exemption from them pursuant to regulation 14. Commencement of internship 18. (a) A person wishing to register as an intern shall submit a request to the Authority and shall attach to it an undertaking in accordance with the form in the Third Annex, signed by a trainer, confirmation of completion of examinations pursuant to Regulation 12 and a photocopy of the fee payment voucher pursuant to Regulation 26. The date of commencement of the internship shall not be prior to receipt by the Authority of all the documents pursuant to sub-regulation (a). Internship period

8 19. (a) The intern shall work with his trainer at least 30 hours a week. (c) (d) The period of internship for an investment advisor shall be six months and the internship for a portfolio manager shall be nine months. An intern who is absent from his work with his trainer for more than fourteen days during the internship period, the end of the internship period shall be postponed for the number of days exceeding fourteen. Notwithstanding the aforementioned in sub-regulation, absence of an investment advice intern from work with his trainer in excess of one hundred days, or where a portfolio management intern is absent from his work with a trainer for more than one hundred and twenty days during the internship period, the days they worked with their trainer shall not be included in the number of days required for the internship period. Supervision of interns 20. (a) The Authority shall supervise interns. The Authority is permitted to enquire with the trainer and the intern as to the quality of the internship and to visit the where the internship is carried out. Cessation of internship by the Authority 21. (a) Where the Authority sees that the work of the intern with the trainer is improper, it shall inform the intern and the trainer of the suspension of the internship of the intern with the trainer, and shall set a date on which they can make representations to it, should they so desire. (c) The Authority, having heard representations by the intern and the trainer, or if they fail to appear to make their representations on the duly set date, is permitted to decide to terminate the internship of the intern with the trainer, from the date it has decided. The Authority shall decide whether to take into account the period of internship of the intern with the same trainer until the date of termination of the internship, and its decision shall be communicated to the trainer and to the intern. Breach of undertaking by a trainer 22. A trainer who is in breach of his undertaking pursuant to Regulation 18 or failed to fulfill any of the provisions of the Regulations relating to employment of interns, shall be accused of behavior inappropriate for a licensee. Completion of internship

9 23. (a) The internship period having ended, the intern shall submit to the Authority a trainer certificate in accordance with the format contained in the Fourth Annex; the Authority shall grant him, at his request, certification of completion of the internship. The certificate of completion of internship shall be sufficient proof of the completion of the internship. Chapter Four: Fees License request fee [Amendments: 5757, 5758, 5758 (no. 2), 5759, 5760 (no. 2), 5761, 5762, 5762 (no. 2), 5763] 24. (a) An individual applying for a license shall pay the Authority a fee of 256 New shekels. An partnership applying for a license shall pay the Authority a fee of 386 New shekels. (c) A company applying for a license shall pay the Authority a fee of 513 New shekels. Examination and appeal fees [Amendments: 5757, 5758, 5758 (no. 2), 5759, 5760 (no. 2), 5761, 5762, 5762 (no. 2), 5763] 25. (a) A person requesting to be examined in an examination shall pay the Authority a fee of 386 new shekels. (c) An examinee wishing to appeal a grade received in an examination shall pay the authority a fee of 386 new shekels; where the grade is raised as a result of the appeal to 60 or higher, the appeal fee shall be refunded to the appellant. A person requesting exemption from examinations shall pay the authority a fee of 386 new shekels for each request; where the request is for an exemption from a single examination - the fee payable to the Authority shall total 256 new shekels. Intern registration fee [Amendments: 5757, 5758, 5758 (no. 2), 5759, 5760 (no. 2), 5761, 5762, 5762 (no. 2), 5763] 26. A person requesting registration as an intern shall pay the Authority a fee of 256 new shekels.

10 Annual license fee [Amendments: 5757, 5758, 5758 (no. 2), 5759, 5760 (no. 2), 5761, 5762, 5762 (no. 2), 5763] 27. (a) The annual fee for an individual investment advisor or portfolio manager new shekels. (c) The annual fee for an investment advisory partnership - 1,282 new shekels. The annual fee for an investment advisory or portfolio management company - 3,857 new shekels. Fees adjustment 28. (a) On January 1 st and July 1 st of each year (herein: the "Adjustment Date") the fee's pursuant to these Regulations shall be amended in accordance with the rate of increase of the index published for May 1996 up until the index published most recently prior to the adjustment; for this purpose, "index" - the Consumer Price Index published by the Central Bureau of Statistics. The fee's payable shall be rounded to the nearest whole new shekel. Commencement 29. The commencement date for these regulations shall be 28 th Kislev 5757 (9 th December 1996). (Amendment 5764) 30. (Cancelled)

11 First Annex (Regulation 7(a)) 1. Securities Law and Professional Ethics Requirements The candidate is required to prove knowledge of securities law, including subjects concerning an initial public offering of securities and the secondary market processes, the Joint Investments Trust Law, 1994 and its associated regulations and fundamental concepts in corporate law. The candidate shall show proficiency in the the Regulation of Investment Advice and Investment Portfolio Management Law , and its associated regulations, commencing with the definition of activities requiring a license, through the duties imposed on a license holder and ending with disciplinary offences, judgement and punishments; the candidate shall be required to demonstrate familiarity with the Securities Law, 1968, regarding securities fraud, prohibition on insider trading and offenses by a member of the Stock Exchange; the candidate shall demonstrate proficiency with the Penal Law, 1977, with respect to offenses of fraud, forgery, deception, falsified company documents, offenses by company managers and employees, the Privacy Protection Law, 1981 with regard to the invasion of privacy offense. The candidate shall demonstrate general understanding of ethical behavior and professional responsibility required of those acting in advise and management of investment portfolios. Details of subjects for the Securities Law and Professional Ethics examination Part A - Securities Law a. Securities Law, 1968, and its associated regulations 1. The Securities Authority: its functions, powers and mode of operation. 2. Public offerings of securities, the requirement to publish a prospectus and exemptions therefrom. 3. Details of prospectus, its structure and format. 4. Public offerings procedures and notice of results 5. Immediate and periodic reports 6. Directors report, its nature, structure and format 7. Criminal liability: a. In respect of a misleading detail in a prospectus, in an immediate report or in a periodic report.

12 b. Criminal liability of directors, office holders in a company and experts. 8. Civil liability: a. Civil liability of owners of a controlling interest, directors, chief executive and experts. b. Class action. b. Basic concepts in the Mutual Investments in Trust Law, 1994, and its associated regulations: 1. Mutual fund - its nature and mode of establishment. 2. The functions of the trustee. 3. Responsibilities of the fund manager. 4. Details of fund prospectus, its structure and format. 5. Open mutual fund, closed mutual fund, changes in their classification and their liquidation. 6. Immediate reports, monthly reports, report of unit holdings, report on voting at General Meetings. 7. Publication of purchase and selling prices, unit price and redemption price of an open fund, publication of unit price and its value in the case of a closed fund. c. Basic concepts in corporate law, including: 1. Memorandum of Association, Articles and amendments. 2. Powers and functions of directors. 3. Responsibility of office holders. 4. Approval of dealings with company office holders. 5. Shareholders meetings. 6. Share capital and changes thereto. d. the Regulation of Investment Advice and Investment Portfolio Management Law Definition of areas of activity of investment advisors and portfolio managers

13 2. Licensing of investment advisors and portfolio managers. 3. Requirements of investment advisors and portfolio managers a. Fidelity of a license holder according to the law and common law. b. Prudence requirements of a license holder. c. Confidentiality requirement. d. Matching of service to client's requirements. e. Signing of a written agreement between the customer and the license holder. f. Adequate disclosure requirements and special risks. g. Prohibition on preferential treatment. h. Prohibition of receipt of incentives. 4. operational rules for portfolio managers: a. Separation in holding and managing of client assets. b. Prohibition of use of client assets. c. Fees and expenses. 5. Recording and reporting a. Recording of transactions. b. Reporting to client. c. Reporting to the Securities Authority. 6. Disciplinary offences and disciplinary adjudication. 7. Penal.

14 Part B - Professional Ethics a. Securities offenses under the Securities Law, Securities fraud, including coordinated orders, artificial influencing of share prices, splitting of orders etc. 2. Prohibition on use of insider information. 3. Offenses by an employee of a stock exchange member. b. General ethics 1. Location where advice is given 2. Advisor independence. 3. Fiduciary requirement to the client. 4. Duty in matching advice to the client's needs. 5. Duty to use information and supply it to the client. 6. Duty to give skilled and prudent recommendations while providing a balanced presentation of the risks and opportunities, whilst emphasizing special risks. 7. Giving fair service to clients. 8. Use of information received in trust. 9. Prohibition of the use of information regarding future client actions (front running). 10. Other behavior unbecoming a license holder. 11. Chapters 3 and 4 of the the Regulation of Investment Advice and Investment Portfolio Management Law Accounting Requirements The candidate shall demonstrate an understanding of reading of balance sheets, profit and loss statements, statements of changes in equity and cash flow statements and the securities regulations relating to the preperation of financial statements. The candidate shall demonstrate knowledge of analysis of the financial statements and an understanding of the different financial ratios.

15 Detail of subjects for the accounting examination a. Generaly Accepted accounting principles and their effect on financial reporting: 1. Going concern principle. 2. Prudence principle. 3. Accruals basis as opposed to cash basis. 4. Historic cost principle. 5. The principle of matching income and expenditure. 6. The principle of full disclosure. 7. The principle of materiality. 8. The principle of consistency and comparability of financial statements over time. b. Structure of financial statements I Balance Sheet 1. Structure of balance sheet groups. 2. Cash and cash equivalents. 3. Inventory - methods of presentation 4. Investments in securities - valuation methods. 5. Fixed assets - recording and depreciation methods. 6. Other assets and deferred expenses - recording and depreciation methods 7. Liabilities - presentation and reporting basis 8. Balance sheet provisions for contingencies. 9. Equity composition II Profit and Loss Statement 1. The basis for recognition of revenues in financial statements. 2. The structure of statements.

16 3. Presentation of taxes on revenues - current and deferred taxes. 4. Presentation of capital gains and losses. 5. Finance expenses. 6. Extraordinary items. III IV Statements of changes in equity - structure and composition Cash Flow Statement 1. Cash flows from normal operations. 2. Cash flows from investment operations. 3. Cash flows from financing operations. c. Inflation adjusted financial statements. d. Consolidated financial statements. e. Balance sheet value system. f. Notes to the financial statements (accounting policy note, pending liabilities and agreements etc.). g. Post-balance sheet date events - mode of expression in the financial statements. h. Profit per share and its significance. i. Interim financial statements - structure and content of the statements. j. Analysis of financial statements: - Financial ratios - Liquidity ratios. - Profitability ratios. - Financial soundness ratios. - Operating indices (efficiency).

17 3. Statistics and finance Requirements The candidate shall demonstrate knowledge of basic financial calculations with respect to interest calculations, present and future value and returns. The candidate will be able to calculate central values and indices of dispersion of statistical series (expectancy and variance). The candidate shall demonstrate an understanding of the normal distribution and the significance of regression analysis including an understanding of the results obtained from such an analysis. Detail of subjects for the Statistics and Finance examination a. Statistics 1. Descriptive statistics 2. Random variables-expectancy varience. 3. Normal distribution 4. Understanding of simple regression 5. Probability b. Financial calculations 1. Interest calculations: - Compound interest - Real interest - Effective interest 2. Present value method 3. Internal rate of return method 4. Calculation of rates of return and standard deviation 5. The expectation/variance model c. Principles of financial asset management: 1. Use of the dominance model 2. Efficiency curve

18 3. Uses of the CAPM market portfolio model 4. Economics Requirements The candidate shall understand the working of markets for various products, in situations offree competition without governmental intervention, in situations of government intervention, and under conditions of imperfect competition. The candidate shall understand the activity of the economy as a whole, including the reasons for business cycles and the operation of fiscal and monetary policy. In addition a basic understanding of international trade and the foreign currency markets is required. Apart from a general understanding of all of the aforementioned, specific familiarity is required of the Israeli economy and the processes and systems characterizing it. Detail of subjects for the Economics examination a. Basics of micro-economics 1. The shortage phenomenon and the proceeds curve 2. Behavior of the individual and the firm 3. Demand and supply curves (elasticity calculation) 4. Setting the equilibrium under conditions of competition 5. Government intervention 6. Imperfect competition (monopoly) b. Basic macro-economics 1. National accounting 2. Measuring national economic production 3. Fiscal policy 4. The money market 5. Monetary policy c. Basic international economics 1. Balance of payments

19 2. Relative advantage 3. The foreign currency market 4. Exchange rate policy 5. Securities analysis and financial instruments Requirements The candidate shall have knowledge about the structure of the capital market in Israel and the various indices summarizing capital market activity. In addition the candidate will recognize the assets and various financial instruments including the taxation thereof, trading methods, methods for calculation of prices of financial instruments and the significance the parameters published by the stock exchange regarding them. The advisor and the portfolio manager shall demonstrate knowledge of the various methods for valuation of companies, valuation of bonds and methods of analyzing the risks in investing in government and corporate bonds, and their inclusion in an investment portfolio. The candidate shall demonstrate an understanding of the way in which financial instruments can be utilized for the efficient management of an investment portfolio (hedging of risks) and the methods of calculation of the risks entailed in investing in financial instruments. Details of the subjects for the Securities Analysis and Financial Instruments examination a. Familiarity with financial assets and the taxation thereof - Mutual funds - Securities - Savings plans - Provident funds - Derivative financial instruments (options and futures) - Securities of Israeli corporations traded in markets outside Israel - Foreign currency b. Listing for trading and trading methods

20 - Listing of securities - Trading methods on the stock market (limit, best order, leader, partial execution) - Variables and the MAOF indices - Trading methods on world stock exchanges where Israeli securities are traded c. Implications of investment in securities 1. Factors affecting returns 2. Factors affecting securities analysis 3. Structural changes d. Price adjustments 1. Dividends 2. Bonus shares 3. Rights 4. Evaluation of issue package e. Evaluation of companies: - Asset value - Market value - Multiplier - Amortization of cash flows - Measures of risk: f. Clearing Financial risk - capital structure of the company Operational risk - Structure of company expenses Business risk - Trends and competition in the sector, exposure to imports - Listed companies

21 - Proxies g. Fixed income securities - Types of government bonds and mode of issue - Non-government bonds - The international bond market h. The time structure of interest rates - The returns curve - Expectations theory - Liquidity premium theory - Market segmentation theory i. Valuation of bonds - Criteria in valuation of bonds (return, taxation) - Risk measurement (the rating system) - Leverage (sensitivity to changes in interest rates - Analysis of convertible bonds - Duration j. Financial instruments Familiarity with different financial instruments (options, futures contracts, forward, swaps, futures on foreign currency, assets, future short term government bonds, securities and interest rates), procedures for working with financial instruments in Israel. k. Investment strategies 1. Strategies and the matching to the market Naked strategies Combination strategies - saddle and trough Spread and butterfly strategies

22 2. Quantification of risk 3. Hedging of risks l. Options pricing 1. The naïve model 2. The binomial model 3. The Black and Scholes model 4. Sensitivity of option prices to changes in parameters 5. Valuation of warrants m. Stock exchange sureties system and its management

23 Second Annex (Regulation 7) Portfolio Management examination a. Evaluation of the performance of an investment portfolio 1. Performance measures 2. Comparison of similar portfolios b. Investment portfolio risk management 1. Dynamic investment portfolio risk management 2. Dynamic investments strategies and risk hedging Third Annex Undertaking (Regulation 18) I,.. holder of identity card no holder of investment advisor/portfolio manager license (*) no... hereby declare that: 1. Address of my place of work I have received Ms/Mr...holder of identity card no. as an intern for a period of.months in accordance with the the Regulation of Investment Advice and Investment Portfolio Management Law and the Regulations associated with it. 3. For as long as Ms/Mr is in my service, he will work solely in investment advice/portfolio management(*) under my supervision, for thirty hours a week. 4. Should Ms/Mr continually fail to come to work or will be absent for a continuous period exceeding one/one hundred and twenty (*) days, or if he leaves his work under my supervision, I will immediately inform the Authority of same. 5. Should I wish to bring the internship of Ms./Mr under my supervision to an end, I will inform the Authority as to my reasons. Date (*) Delete non-required. Signature

24 Fourth Annex (Regulation 23(a)) Certification by trainer of completion of internship I holder of identity card no. and whose work address is. hereby declare that Mr. holder of identity card no.. worked in my office as an intern from.. until.. and that during this period: 1. Was permanently present in my office (excluding the dates below) for no less than..hours per week. 2. Was absent from work for the following periods for the reasons as detailed: From. Until.. Reason:. From. Until.. Reason:. 3. Worked in my office in the following types of work As far as I am aware, he worked in other permanent employment as follows:. Date.. Signature

25 11 th Shvat 5757 (19 January 1997) Dan Meridor 1 RC 5808, 5757 ( ,page 352 Amendments: RC 5837, 5757 ( ), page 892; RC 5869, 5758 ( ), page 990 [5758 (no.2)]; RC 5908, 5758 ( ), page 892; RC 5944, 5759 ( ), page 223; RC 6012, 5760 ( ), page 214; RC 6042, 5760 ( ), page 686 [5760 (no.2)]; RC 6113, 5761 ( ), page 909; RC 6142, 5762 ( ), page 271; RC 6178, 5762 ( ), page 906 [5762 (no.2)];; RC 6298, 5764 ( ), page 312. Minister of Finance