The Israel Securities Authority (ISA) is Israel's national securities regulator. Established by law in 1968, the ISA's role is "to protect the interests of the public investing in securities." The ISA is active in two main areas: protecting investors, and developing the regulatory infrastructure, tools and products for an innovative, diverse and competitive public capital market.
Over the years, the capital market has become one of the pillars of the Israeli economy. This market allows companies and businesses to recruit funds to develop their operations, which contributes to economic activity, employment and innovation in Israel. Simultaneously, the capital market enables the general public to invest in and take part of the successes of Israel's leading companies, increasing national public savings.
A stable capital market cannot exist without a high standard of behavior among the entities that finance the capital market, as well as in the financial industry. The Israel Securities Authority acts on behalf of the investors by setting and enforcing high standards of market behavior as well as developing a diverse and competitive market.
The Israel Securities Authority currently oversees a broad array of activities in the capital market, including the trade of State of Israel and corporate securities in the Tel Aviv Stock Exchange; the staging of Initial Public Offerings (IPOs) by companies recruiting capital from the public; the operations of mutual funds which offer the public a range of liquid and convenient investment avenues; the operations of financial agents including investment consultants and portfolio managers; and more.
The Minister of Finance appoints the Israel Security Authority's Chairperson and its plenum members.
Some members are appointed from among the general public, while others are state employees, including financial regulators.
The ISA's staff includes experts from various fields, including accounting, law, economics and administration.
The ISA is active in the following areas, among others:
A. Supervision of corporations that offer securities to the public by inspecting corporations' prospectuses and issuing permits to publish these reports, which provide the basis for public securities offerings.
B. Supervision of mutual fund managers by regulating their operations and issuing permits to publish prospectuses, which provide the basis for mutual funds' offerings to the public.
C. Licensing of portfolio managers, investment advisers, and investment marketers, and regulation and oversight of their operations.
D. Oversight of portfolio managers and non-bank exchange members and their compliance with their obligations under the Prohibition against Money Laundering Law.
E. Supervision of the proper and fair management of the stock exchange.
F. Licensing of trading platforms to their own account and regulation of their operations.
G. Licensing of offering coordinators and oversight of their operations.
H. Oversight of underwriters' operations: licensing of rating companies, and regulation and oversight of their operations.
J. Inspections of the supervised entities' compliance with the Securities Law, the Joint Investments Law, the Investment Advice Law, and other laws under the ISA's responsibility.
K. Investigations of violations of the Securities Law, the Joint Investments Law, the Investment Advice Law, and other laws related to such violations.
L. Administrative enforcement proceedings, ranging from inquiries concerning administrative offenses under the Securities Law, the Joint Investments Law, and the Investment Advice Law, to the commencement of administrative proceedings before the Administrative Enforcement Committee, at the order of the ISA Chair.
M. The ISA, jointly with the Institute of Certified Public Accountants in Israel, participates in funding and operating the Israel Accounting Standards Board.