Bar Association Regulations (Monitoring Pension Funds), 5738 ...

Bar Association Regulations (Monitoring Pension Funds), 5738-1978 1By virtue of the powers vested in me pursuant to Section 89L of the BarAssociation Law, 5721- 1961, (hereinafter – The Law) and the rest of the powersvested in me pursuant to the law, I hereby enact these Regulations:1. ApplicationThese Regulations will apply to pension funds whose articles were approvedpursuant to Section 89I of the Law (hereinafter – the Fund) and the companymanaging the fund's business pursuant to such an approval (hereinafter – theCompany)2. MonitoringIn addition to the provisions in any other law the fund will be subjected to themonitoring by the Bar Association (hereinafter – the Bar), and the Bar will beaccountable toward the Minister of Justice to execute such monitoring.3. Reporting MembersThe Bar will provide the company with a complete copy of its members' registry,will report to the company any person that is admitted to the Bar and any case thata person ceases to be a member of the Bar; the copy of the registry and reportspertaining to members being admitted to the Bar will include the date of birth or atleast the year in which a member was born as recorded in the Bar's records.4. Remitting Information Exempting Membership in the FundThe Bar will remit, insofar as possible, to the company, any informationpertaining to a member of the Bar that exempts the member from membership inthe fund by virtue of the law or the Fund's articles.5. Appointing an Internal Auditor by the CompanyThe company will appoint a salaried internal auditor, qualified as an accountant,to examine whether the Fund's business is being managed in accordance withcommon practice in relation to the pension funds monetary transactions, itsarticles, the company's institutional decisions and the common practice actuariesrules; the internal auditor will report its findings to the company on the datesdetermined by the company; however the Bar or the Minister of Justice maydemand that the auditor report on a more frequent basis as determined in a writteninstruction to him; a copy of any report will also be given to the Bar and theMinister of Justice.6. Appointing an Internal Auditor by the Bar or the Minister of JusticeWhereupon the company does not appoint an internal auditor as stated inRegulation 5 within a reasonable time after it was demanded to do so by the Baror the Minister of Justice, the Bar or the Minister of Justice may appoint one in itsstead and an internal auditor appointed as above will not be dismissed other thanwith the consent of the body appointing it.7. Copies of the Report and ProtocolsThe company will send the Bar

(1) a copy of the report that it gave the Savings Authority alongside the Treasuryand the Companies Registrar;(2) A copy of the protocols of the meetings in all the company's institutions.8. Non-DisclosureThe internal auditor will not disclose anything that he learns of as a result offulfilling his role and will not disclose such information to anyone but thecompany, Bar and the Minister of Justice or if ordered to do so during questioningin court or before any other legally certified person to conduct investigations ordemand knowledge thereof for the purpose of fulfilling his duty.9. Investments CommitteeThe company will establish an investments committee comprised of fivemembers other than the company's directors; among the members of theinvestments committee will be jurists, economists and those familiar with bankingbusiness; the investments committee's role will be to advise the company withrespect to investing the fund's money within the framework of the provisions thatare binding upon the company in relation to its investments pursuant to any otherlaw.10. Depositing SecuritiesThe fund's monies that were invested in securities will be deposited with abanking institution; the deposit terms will be that the banking institution providethe company, at the end of each month, confirmation of the deposits it holds onbehalf of the company as stated above.11. Duty to Remit Information And Permission to Access and PeruseCompany DocumentsThe company, its managers and employees must provide the internal auditor, theBar and the Minister of Justice any information pertaining to managing thecompany's business and the internal auditor, a Bar representative and the Ministerof Justice's representative so authorized may, at any reasonable time, access thecompany's offices and peruse any document concerning management of thecompany's business insofar as this is deemed necessary to fulfill the monitoringroles pursuant to these Regulations.1 R.F. 5738, 982.