Three trustee services for public companies and their shareholders: the mandatory post-IPO lock-up, the blind trust, and the safe-harbor plan that lets insiders buy or sell while protected from inside-information exposure. Eligible by structure, a trust company that is the sister of a TASE member, and executed in-group on the exchange.
We establish trusts for holders subject to lock-up requirements, according to the offering documents and applicable rules. Preparation includes opening trust accounts and completing the required documents and approvals before listing. Lock-up periods and release conditions depend on the type of holder and the rules that apply.
Set up quickly, in time for the listing date
Release restrictions matched to the holder and applicable offering documents
Sales and reporting subject to the applicable lock-up arrangement
The safe-harbor plan
Buy or sell on a pre-committed plan. Protected.
Under ISA Position 101-18, an insider can adopt a pre-arranged written trading plan specifying quantities, prices and dates or a formula. Execution after the cooling-off period is subject to the arrangement’s conditions and applicable law. The plan can cover purchases or sales, and its protection depends on meeting all relevant conditions.
Written plan: amounts, prices, dates or a formula, subject to applicable conditions
Cooling-off period observed before execution begins
Covers insider purchases and sales alike
The blind trust
Hand the decisions over entirely.
The alternative route, under Securities Law §52ז: the insider hands full discretion to the trustee and is walled off from the specifics. The trustee decides what, when and how much to trade; the insider sees only aggregate value and result. Trading while detached from the decisions is what removes the inside-information link.
Full execution discretion held by the trustee
Information barrier: only aggregate figures shared back
Blind trust under the applicable arrangement
Eligible by structure
Not every trustee qualifies. We do.
The rules name a closed list of who may serve, and a trust company that is the sister of a stock-exchange member is on it. That is exactly our structure: Psagot Equity Trusts alongside Psagot Securities, a TASE member. Execution runs in-group, on the exchange, with the trustee named in the prospectus.
A trust company sister to a TASE member: on the eligible list
In-group execution, no external broker
Trustee named in the prospectus, as required
How it works
From engagement to close.
01
Engagement signed.
Before the listing or before the plan starts, the holder signs with Psagot Equity, defining the shares, the mechanism, and an irrevocable power of attorney where the structure requires it.
02
Shares or funds deposited, as required for the relevant service.
Blocked shares, or the funds and instructions for a safe-harbor plan, are deposited with the trustee. Voting arrangements and any required confirmations to TASE follow the applicable offering documents and lock-up terms.
03
Executed by the book.
Lock-up releases on the staged schedule; safe-harbor and blind-trust trades executed on the exchange with the insider detached from timing and price; everything reported.
04
Closed and reported.
On completion, remaining shares move to the holder’s account, statements are issued, and the trust is closed with the required notifications filed.
Lock-up periods, release restrictions and exceptions depend on the type of holder, the offering documents and applicable rules. The applicable arrangement must be checked before any action involving the shares.
What is the difference between a blind trust and a safe-harbor plan?
Both arrangements separate the insider from trade execution, subject to their conditions and applicable law. In a safe-harbor plan (ISA Position 101-18), the insider specifies amounts, prices and dates or a formula in advance; changes are subject to the arrangement’s conditions and applicable law. In a blind trust (Securities Law §52ז), investment discretion is entrusted to the trustee under the trust’s terms. A safe-harbor plan can cover purchases as well as sales.
Why can Psagot Equity serve as the trustee?
Because the eligibility list is closed, and a trust company that is the sister of a stock-exchange member is on it. Psagot Equity Trusts sits alongside Psagot Securities, a TASE member, so the trustee qualifies by structure and the trades are executed in-group on the exchange.
Do holders retain voting and dividend rights during the lock-up?
Voting rights, dividend entitlements and distribution arrangements depend on the holder type, offering documents and applicable lock-up terms. These arrangements are established for the specific holding.
Related trust services
Across public-company life
M&A Paying Agent & Escrow
Independent paying agent and escrow, native to Israeli law.
