Investment Fund

By Raphael Perez

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Saving for the sake of safety, for future projects, for retirement, is a common act. In a society governed by the rule of law, this act is subject to rules that provide for precise relations between the investor and financial professionals, and that organize information, procedures and protections.

One can buy shares or bonds on the stock market, or on the Real Estate market one can buy a condo or a house. These activities have long been subject to regulation. However, the major trend in recent decades has been the multiplication of “investment funds”: the savings of a greater or lesser number of individuals are collected and invested in certain “assets” (shares, bonds, buildings, forests, etc.). Individuals thus make indirect investments

The legislation applying to “investment funds”, a modern and common form of investment, is now standardized.

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Historically, Finance has been focused on “securities”, shares and bonds (hence the term “paper”). A wide range of funds have been designed on the basis of these two types of assets, with the gradual development of operating, information and control procedures, with the aim of ensuring investor protection.

Over time, the scope of financial activity and processes has been widened to include other assets… so-called “alternative” assets as opposed to the traditional assets of stocks and bonds.

In effect, the regulatory framework distinguishes between two types of investors:

  • Professional Investors” who are happy to swap less protection for more flexibility. Certain types of funds may be offered to them, with a lighter control apparatus.
  • A “professional investor” is identified on the basis of specific criteria (wealth, investor experience, risk acceptance, etc.) and the Regulation requires the signature of a very specific form.
  • All others are “non-professional investors” and it is permitted to propose to them under certain conditions to invest also in Real Estate funds.

Consequently, there must be a management company, a custodian, property valuations, audits by the external auditor, and a list of disclosures to be made to investors prior to subscription and at various stages in the life of the fund.

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About Us

Raphael Perez holds a law degree from Bar Ilan University. He has been a member of the Israeli Bar Association since 1998. He has been a notary since 2008. He completed his internship at the Jerusalem District Court under Judge E.C. Ben Zimra. He was one of the pioneers in the 2000s in terms of buying groups for real estate investment in Israel. Whether through the Jewish Agency's Aliyah fairs or through his work in the field as a lawyer or through his blog, he has never ceased to put forward, innovate and find new ways to make each purchase project in Israel a successful Aliyah.

Perez & Co – Law & Notary Office is a firm, comprising native English, Hebrew and French speakers fully integrated into Israeli legal society, serves as an interface between Israeli society and the French & English speaking world. The client base is composed largely of North Americans or other English speakers doing business in Israel, or Israelis dealing abroad. Moreover, the firm has been involved in major commercial, constitutional and labor litigation.

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