Israeli Capital Market Authority Clarifies Fine on Naaman Insurance Agency Not Imposed on Owner

The Israeli Capital Market Authority announced earlier this week a civil fine and financial sanction totaling approximately 10.5 million shekels against Naaman Insurance Agency. However, it clarified yesterday that the penalty was imposed on the agency itself, not directly on its owner and CEO, Naor Naaman. The fine relates to serious legal violations involving unauthorized withdrawals from pension savings, including encouraging clients to redeem pension funds prematurely.

According to the Authority, findings showed that clients were misled into believing they were communicating with representatives of the institutional body managing their funds. Agency representatives withheld relevant information and conducted actions in clients' personal accounts without informing them, constituting deception rather than fraud. Despite this clarification, the Authority emphasized that the agency under Naaman's management committed severe legal breaches, with further violations still under investigation.

The Authority also reiterated its public warning against entities promoting early withdrawal of pension savings before retirement age, which can cause irreversible damage to monthly pensions and insurance coverage. It cautioned against misleading clients and charging high commissions for services that clients can perform themselves at no cost.