Israel Capital Market Authority Warns Agents Over Altshuler Shaham Pension Exodus
The Capital Market Authority warned insurance agents and a major financial institution against spreading false information to siphon pension funds from Altshuler Shaham following its acquisition by Wobi Group.
The Capital Market Authority has launched a crackdown on insurance agents suspected of exploiting Altshuler Shaham's acquisition deal to siphon off pension and provident funds. According to information obtained, the authority headed by Amit Gal recently issued a severe warning letter to several industry agents and a major institutional body. These agents allegedly encouraged clients to transfer funds from Altshuler Shaham by spreading misinformation regarding the company's stability following its acquisition by Wobi Group for approximately 1 billion shekels.
Crackdown on Misleading Advice
The regulatory body revealed that multiple licensed agents used scare tactics and false claims about the transaction's negative impact on management and client assets to generate commissions. While the warning letters do not currently impose administrative sanctions, they demand an immediate halt to such misleading practices. The authority emphasized that until the acquisition is finalized and all regulatory approvals are secured, no changes will occur in the management of client assets or rights.
High Stakes and Commission Incentives
The controversy underscores systemic issues surrounding agent compensation models in Israel. Agents typically receive upfront acquisition commissions from financial institutions for moving client portfolios, alongside ongoing asset-based fees. Despite previous recommendations by a special Treasury team led by former Ministry Director-General Shlomi Heizler to overhaul the commission structure, agents continue to collect substantial payments, which reached 13.2 billion shekels in 2025.
