Securities laws define the legal framework in which the ISA supervises all entities that offer securities to the public, entities that manage investments for the public (with through mutual funds or by advising and managing investment portfolios), and other entities that securities intermediaries such as offering coordinators, exchanges, and trading platforms.
Securities law define the boundaries between activities that are subject to such supervision and unsupervised activities, and entities that wish to operate without the ISA's supervision must carefully understand these boundaries and comply with the law to ensure that they are not involved in any activities that are subject to ISA supervision.
The ISA regularly reviews the activities of various businesses and ventures that operate in areas relevant to the ISA's supervision, to ensure their compliance with securities law. For example, the ISA checks whether ventures that offer securities to investors that are required to issue a prospectus do so, or whether investment advice and portfolio managers who are not licensed required by the law to be licensed.
If the ISA detects that an entity's activities do not comply with the requirements of the law, it exercises its powers and takes steps to end the violation. These powers include the authority to order the venture to suspend its violating conduct, and in the appropriate circumstances, the ISA exercise its powers of enforcement.
Furthermore, over the years, the ISA has also promoted legislative amendments to regulate unsupervised activities, as part of its policy to protect the interests of the investing public. The ISA has promoted legislation in areas including crowdfunding, trading platforms, and has promoted a prohibition on trading in binary options with investors in and outside Israel.
Before you make any decision to invest in securities in the capital market, the ISA recommends that you check whether the entity through which you will be making your investment is supervised by the ISA. For a list of supervised entities, click HERE.
Warning to entrepreneurs seeking to make unsupervised offers