A broker or custodian located outside Israel

The customer is aware that while holding the various securities and assets as provided above, the relevant Brokers\custodians may also hold cash. The information provided above is true as of the date hereof. The identity of the Broker\custodian may be changed at any time subject to the Bank's sole discretion and subject to provisions of the law. In addition, the customer is aware that the Broker\custodian may act through a sub-custodian

Broker/Custodian selection policy 

The Bank has a defined policy with regard to the selection of and engagement with a third-party custodian. Said policy refers to, inter alia, criteria for the selection of and engagement with a third-party custodian, which include the financial strength of such custodian, his ability to provide an appropriate service level, his experience, the types of activities and services provided by him and the manner of addressing customer needs, the legal liability arrangement, and more.

The methodology for tracking the activity of a third-party custodian includes, inter alia, routine examination throughout the year of the financial strength of the third-party custodian, in accordance with the frequency of the publication of relevant data by such third-party custodian, as well as further examination as part of the approval procedure of the annual policy, which is brought before the Bank's Board of Directors. In addition, the Bank routinely examines information published by third parties, which is relevant, in the Bank's opinion, to the tracking of the third-party custodian's activity.

With regard to the implementation of the various policy aspects, a designated unit in the Bank examines the criteria in the abovementioned policy both upon the selection of and initial engagement with a third-party custodian, upon the renewal of such engagement with him, and upon periodic examinations, as stated in the above tracking methodology. This unit documents in writing its checks, findings, and conclusions. The examination of the financial strength of a third-party custodian is carried out using both internal and external analyses as well as the examination of parameters which are relevant, in the Bank's opinion, to the various entities and types of activities and services. The control over the service level is by obtaining a report prepared by an external control over the entity providing the service, pursuant to international control standards, such as ISEA 3402. The legal liability arrangements are reviewed based on the engagement agreements with the third-party custodian and by consultation with legal factors. The engagement with a third-party custodian is subject to obtaining approvals from the authorized organs in the Bank for this matter.

It is hereby expressed that the Bank may examine various and/or additional criteria, instead of or in addition to the aforesaid, and that the tracking methodology may include other and/or additional aspects, instead of or in addition to the aforesaid, all in accordance with the needs, characteristics, and special circumstances required in connection with any third-party custodian, the activities and services it provides, etc.