1. General Counsel
1.1 Legal Counsel
a) Provide legal advice to the department's employees during their current work on subjects of licensing and supervision.
b) Initiation of new legislation or amendment of existing legislation.
c) Publish instructions and handle the regularization proceeding.
d) Publish staff position statements and questions and answers; provide primary instructions / requests to avoid taking enforcement actions in response to received request.
e) Handle public inquiries and complaints.
f) Raise subjects for deliberation by the ISA's plenum and its committees.
1.2 Risk Management
a) Department's Professional lead on Risk management.
b) Provide professional support to the department's units in overseeing the implementation of the instructions and regulations regarding risk management by the supervised bodies.
c) Assist and accompany the risk management of the department in its capacity as a supervisory authority.
1.3 Licensing Branch
a) Processing of applications requesting a permit to hold the means of control of mutual fund managers.
b) Licensing of mutual fund managers and trustees, and processing mutual funds prospectus' publication permits.
c) Reliability tests of license applicants, controlling shareholders and directors.
d) Licensing of investment portfolio managers, investment advisers and investment marketers, both individuals and companies. This includes conducting licensing examinations, processing applications for exemptions from examinations, and the registration of interns. ISA (on behalf of the Capital Market, Insurance and Savings Division in the Ministry of Finance) also conducts examinations and checks applications for exemptions for candidates who are in the process of getting: a pension-adviser's license; a pension-marketing agent's license or an insurance agent's license
e) License suspensions and cancellations, either upon the request of the licensee or on the basis of an administrative decision of the ISA.
f) Examining the fund managers, trustees of funds, investment advisers, investment marketers and portfolio managers companies, compliance with the requirements of self-capital and insurance.
g) Examining the immediate, quarterly and annual reports filed to the Authority by the licensed investment advisers and investment marketers, both individuals and companies.
h) Examining the annual reports filed to the Authority by the mutual fund managers.
i) Advertising circulars and instructions on issues related to licensing.
j) Handling the annual fees of individuals and companies.
2. Supervision of Mutual Funds
a) Ongoing supervision of the compliance of mutual fund managers and mutual fund trustees with the Joint Investment Trust Law, 1994 (hereinafter: "the Fund Law").
b) Examining the prospectuses of mutual funds submitted to the Authority for permission to publish.
c) Examining the immediate reports filed to the Authority by the mutual fund managers and trustees.
d) Development and operation of computerised monitoring systems for identifying deviations from the provisions of the Fund Law and for monitoring yields of Mutual Funds.
e) Professional guidance in the field of funds legislative process.
f) Enforcement by imposing civil fines for breaches of the Fund Law.
g) Publication of circulars on topics connected with mutual funds
h) Providing a professional response to sector requests (individual and
3. Supervision of Licensees
a) Ongoing supervision of the compliance of investment portfolio managers, investment advisers and investment marketers with the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (hereinafter: "the Investment Advice Law").
b) Conducting audits, both on site and by document requests, to check the compliance of licensees with the obligations set forth in the Investment Advice Law.
c) Processing public complaints regarding licensees.
d) Enforcement through requiring financial sanctions due to violation of the Regulation of the Investment Advice Law, and the violation of Prohibition of Money Laundering Law which apply to portfolio managers.
e) Publication of circulars on topics connected with licensees.
4. Compliance Inspections & Examinations
a) Conducting on-site inspections of supervised bodies: Mutual fund managers; issuers of ETNs; investment portfolio managers; Members of the Tel-Aviv Stock Exchange which are non-banking corporations (NBCM)-limited to issues regarding the prohibition on money laundering; simultaneous inspections on a number of supervised bodies belonging to the same group. On-site inspection can focus on a certain subject, on a number of subjects or can be a general check on the control environment of the regulated body and its compliance with the statutory provisions.
b) Conducting off-site inspections of supervised bodies with the aim of checking a certain matter in a broad section, depending on the circumstances. These inspections are normally conducted by means of a questionnaire addressed to all of the supervised bodies or to a group of supervised bodies with certain characteristics, depending on the circumstances.
c) Monitoring the activities of supervised bodies in securities during trading on the Stock Exchange and outside the Stock Exchange. The monitoring is done by identifying and analysing irregularities found in information provided to the Authority by the Tel Aviv Stock Exchange and by the supervised bodies themselves.
d) Examination of the way corporate governance rules are adopted and implemented by the supervised bodies that have an obligation to do so, including checking the characteristics and functioning of the board of directors and management of these bodies insofar as complying with the rules of corporate governance is concerned, checking the internal control system, checking the internal enforcement plan and the way it is implemented in practice, and checking the internal auditing function;
e) Examination of the competence and functioning of the trustees of the mutual funds.
f) Financial and accounting checks: The compliance of the fund managers, the trustees of the funds and the portfolio management companies with the equity and insurance requirements; checking the financial statements of mutual funds; checking revaluations of assets held in mutual funds that have ceased to be traded / are thinly traded.