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The ISA has a wide range of responsibilities and powers. Within the framework of this mandate the ISA is charged, inter alia, with handling the following issues:
· Issuing permits to publish prospectuses for public securities offerings of corporate issuers, as well prospectuses for mutual fund units to the public;
· Examining corporate filings including current reports as well as quarterly and annual periodic financial statements; filings concerning related-party transactions, on private placements; tender offer disclosures; etc.
· Regulating and supervising the activities of the mutual fund industry including on-going monitoring of mutual fund filings;
· Overseeing the fair, orderly and efficient conduct of secondary markets;
· Licensing and supervising portfolio managers, investment advisers and investment marketing agents. This includes examining compliance as well preparing disciplinary complaints against these investment professionals for adjudication by the disciplinary committee;
· Investigating violations under the Securities Law, the Joint Investment Trust Law, 1994, the Regulation of Investment Advice and Investment Portfolio Management Law, 1995 and violations of other laws related to the aforesaid laws;
· Supervision over compliance of portfolio managers and non-bank stock exchange members to the Prohibition of Money Laundering Law, 2000
While the ISA does not have rule-making authority, it drafts and initiates virtually all primary and secondary legislation pertaining to securities law in Israel. In addition, it cooperates with government industries in formulating policies and laws pertaining to capital market activity.
The ISA also collaborates with the Institute of Certified Public Accountants in Israel, in operating and financing the Israel Accounting Standards Board, which is charged with setting accounting standards for Israeli companies.
The Minister of Finance appoints the chairman of the ISA and its commissioners. Commissioners are selected from the public, the civil service and the Bank of Israel, Israel's central bank.
The plenum meets on a regular basis once a month. It also performs its functions through permanent and ad hoc committees, which facilitate the formulation and implementation of ISA policies.
The ISA's staff currently numbers 135 persons, primarily professionals in the fields of law, accounting and economics. In addition, it finances a team of dedicated prosecutors at the Tel Aviv District Attorney's office, who a permanently assigned to ISA cases.
The ISA is not dependent on government financing. Its budget is funded entirely by annual fees payable by entities regulated under the Securities Law and the Joint Investment Trust Law. This budget is approved by the Minister of Finance and the parliamentary (Knesset) Finance Committee. |