The Israel Securities Authority (ISA) is the national securities regulator of Israel. Established by law in 1968, which defines the ISAS's role "to protect the interests of the public investing in securities." ISA is active in two main areas: protecting investors; developing the regulatory infrastructure, tools and products for an advanced, diverse, competitive and innovative 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, thus contributing to the economy's economic activity, employment and innovation. At the same time, the capital market allows the general public to invest in the country's leading companies and so to take part in their success, adding to the profitability of the public's savings.
A sound 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 high norms of behavior, enforcing them in the market's active entities and by developing a diverse and competitive market.
The Israel Securities Authority currently oversees a broad array of activities in the capital market, including the Tel Aviv Stock Exchange activity, where the securities of the State of Israel and many companies are traded; securities IPO's to the public by companies recruiting capital; operations of mutual funds offering the public a range of liquid and convenient investment avenues; operations of many financial agents, including investment consultants and portfolio managers; and more.
The Minister of Finance appoints the Authority's Chairperson and its 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 their securities to the public, including issuance of permits to publish prospectuses that are the basis for public securities offerings, and inspection of the corporations' reports.
B. Supervision of mutual fund managers, including issuance of permits to publish prospectuses that are the basis for mutual funds' offerings of their units to the public, and regulation of their operations.
C. Licensing of portfolio managers, investment advisers, and investment marketers, and regulation and oversight of their operations.
D. Oversight of compliance of portfolio managers and non-bank exchange members 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 and oversight of their operations.
G. Licensing of offering coordinators and oversight of their operations.
H. Oversight of underwriters' operations; I. 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.