Search by Practice
Latest Updates / Capital Markets
July 4, 2016
Interview on Nochi Dankner's Conviction for Securities Fraud
We were interviewed by several media outlets following Nochi Dankner's conviction for securities fraud. Dankner, who formerly controlled the IDB Group, was one of the most powerful figures in the Israeli economy. We noted that the verdict and the extensive media coverage surrounding it significantly contribute to the deterrent effect of the Israel Securities Authority and the prosecutor’s office.
June 30, 2016
Proposal to Reconsider Israel Securities Authority's Activist Regulatory Model
An article on the proposal to reconsider the Israel Securities Authority's activist regulatory model for public companies, allowing them to enjoy wider business and legal maneuvering room.
June 16, 2016
Further Concessions to Public Companies
A number of legislative amendments relating to the capital market have been promulgated recently, including
May 19, 2016
Minister Haim Katz Questioned over Insider Trading Allegations
Following suspicions that Likud minister Haim Katz used insider information for financial gain, we were interviewed by the Reshet B radio station; At London Kirshenbaum, a current affairs news show on Channel 10; and Globes.
May 2, 2016
ISA Staff Position: Trading Fraud – Has the Ship Sailed?
Our recently published article critiques the Israel Securities Authority's staff position outlining conduct that may be deemed trading fraud. It includes a brief comparative review showing that the staff position is problematic and does not provide clear guidance to market participants. The article further notes that similar position papers issued in other jurisdictions tend to set out general guiding principles rather than a detailed and specific list of acts said to constitute fraudulent trading.
April 1, 2016
Enforcement Agreement – Is a Confession Required?
An article examines the willingness of the Israel Securities Authority (ISA) to enter into an enforcement agreement without requiring the violator to confess to the offense or assume responsibility for it. It further argues that the criteria applicable to administrative enforcement do not necessarily overlap with those governing criminal enforcement, and that no correlation between the two should be assumed. In addition, the article compares the enforcement agreement policies of the ISA and the United States. It concludes that enforcement agreements without an admission of liability are not inherently illegitimate, and that intervention in the ISA's discretion would be justified only where the enforcement agreement is fundamentally flawed.
March 15, 2016
Israel Broadens Definition of Accredited Investor
The prestigious Bloomberg BNA’s World Securities Law Report published an article by Ron Shuhatovich discussing the recent order of the ISA regarding the accredited investor definition.
March 1, 2016
Corporate Governance – From Procedural to Substantive
An article discusses the need to examine corporate governance in substantive terms rather than solely through a procedural lens. It reviews the development of corporate governance in Israel from its adoption in the mid-2000s to the present, and outlines general principles for its future evolution while emphasizing the integration of substantive tests that would enable corporate governance to be implemented in an optimal manner.
February 25, 2016
Amendment to the Definition of “Classified Investor” in the Israel Securities Law
As part of the Israel Security Authority’s (ISA) measures to relax certain existing regulations, it has promulgated the Securities Order (Amendment to the First Addendum to the Law) regarding the definition of a “classified investor.” This amendment will come into effect on March 25, 2016.
February 14, 2016
Entry of Foreign Mutual Funds to the Israeli Market
As part of the globalization of the Israeli capital market, the Financial Committee of the Israeli Knesset recently approved the Joint Investment Trust Regulations (Offer of Units of a Foreign Fund), according to which managers of foreign mutual funds may offer their funds to the Israeli public.
February 9, 2016
Barnea & Co. represents Edison Investment Research in an agreement with the Tel Aviv Stock Exchange
In order to assist investors in Israel and abroad make prudent and informed investment decisions, the TASE concluded an agreement with Edison Investment Research to promote a unique model that has not yet been tried in the Israeli capital market. The new model involves Edison doing independent analysis for high-tech and biomedical companies traded on the TASE. This venture will be partially sponsored by the Israeli Stock Exchange.
January 27, 2016
Micky Barnea was interviewed by Globes and asked how TASE can encourage high-tech companies to register on the Israeli stock exchange
As an expert in Capital Markets, Micky Barnea was interviewed exclusively by Globes regarding the TASE "poor year" in 2015. In the interview, Micky describes the reasons for the situation: stifling regulation, low turnover, high costs, and describes what he thinks TASE should do in order to attract new companies to TASE.
January 4, 2016
Finally, crowdfunding comes to Israel
Ariella Dreyfuss Adv. published an article in the leading legal English website "The Lawyer" discussing the new law in Israel relating to alternative means of raising funds. The goal of the law is to assist small Israeli companies in their efforts to raise funds through the social phenomena of crowdfunding, and the establishment of high-tech funds to be traded on a new index on the Tel Aviv Stock Exchange.
January 3, 2016
Finally, Crowdfunding comes to Israel
The social phenomena of crowdfunding, adopted by high-tech startups as an alternative means to raise funds, was previously limited in Israel by Israel’s Securities Law. Section 15 of the law dictates that any offer or sale of shares to the public (i.e. to more than 35 potential investors) requires the issuance of a prospectus approved by the Securities Authority; a timely and costly endeavor, rendering crowdfunding prohibitive in Israel.
November 25, 2015
Israeli Court eases TASE listing rules for foreign listed companies
The Economics Department of the Tel-Aviv – Jaffa District Court is continuing to issue precedent rulings, and this time, in relation to the interpretation of section 46.B. of the Securities Law, 5728 – 1968.
Discussions had been underway for some time between Mylan N.V., a foreign public company traded on the NASDAQ, and Perrigo Company Plc., a foreign company traded on the New York Stock Exchange and on the Tel-Aviv Stock Exchange, relating to Mylan’s potential acquisition of Perrigo’s shares. After these discussions failed to mature into a transaction, Mylan announced in the United States its firm intention of publishing a tender offer for Perrigo’s shares, despite the fact that Perrigo’s board of directors had rejected the offer (i.e., a hostile takeover).
November 4, 2015
Israeli Supreme Court rules that Loan Agreements may require a Prospectus
Recently, the Supreme Court handed down a ruling that constitutes a precedent: loan agreements which an entrepreneur offered to public investors are tantamount to “securities,” and therefore, require the publication of a prospectus, pursuant to the provisions of the Securities Law.
November 3, 2015
New amendments to the Israeli report regulations
As part of the series of reliefs that the Israel Securities Authority is promoting in order to ease the regulatory burden applied to entities under its supervision, a number of amendments to the Securities Regulations (Periodic and Immediate Reports), 5730 – 1970 were promulgated in the Official Gazette recently.
October 25, 2015
New Securities Regulations – Reporting Negotiations and Delaying Reporting
As part of its endeavor to streamline public reporting and ease some of the regulatory burden imposed on publicly listed companies, the Israeli Securities Authority (ISA) this week introduced an amendment to the Securities Regulations governing periodic and immediate reports. The amendment deals with a number of issues, including reporting on agreement negotiations and the companies’ right to delay public reporting.
August 19, 2015
How the JOBS Act Changed the Rules of the IPO Game
A few weeks ago, a new law came into effect in the United States that made significant changes to how small companies can raise money.
The Jumpstart Our Business Startups Act (better known by its nickname, the “JOBS Act”) aims to ease the process for startups to seek investments, with a potentially dramatic effect.
Now, two years after the JOBS Act became law, we can look back and see just what effect these changes have had on the process of taking startups through initial public offerings (IPOs), and how this affects Israeli startups.
August 4, 2015
225 companies have been de-listed from the Tel Aviv Stock Exchange in seven years - why it happened, and how to stop the flight?
Controlling shareholders and company managers complain about the stifling regulation, low turnover, high costs, the intervention in determining wages, and a negative image following the social protests. The leading newspaper, TheMarker, interviewed stock exchange experts, amongst them, Micky Barnea, to discuss why it happened, and how to stop the flight.