Client updates /  Investments

Foreign direct investments (FDI) in critical Israeli infrastructure and services, especially by entities representing foreign countries, are subject to oversight, mainly to ensure national security.

In May, a US federal court ordered Israeli firm NSO Group to pay $168 million to WhatsApp. The ruling raises key questions about US jurisdiction over foreign companies and defense tech regulation.

The Israel Securities Authority published a position statement recently addressing various issues pertaining to brokerage activities and offerings of joint investment arrangements, including the applicability of the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law (“Advice Law”) and the Joint Investment Trust Law to these activities.

For the first time, the Israel Tax Authority has announced its position regarding investments via SAFEs. It determined that, under particular circumstances, the investment is to be considered an advance on a share investment account.

In an attempt to reduce insurance costs for License Holders, the Israel Securities Authority (ISA) has recently implemented several changes.

With the initial coin offering (ICO) era considered over, it seems there is a new tool for financing – the initial exchange offering (IEO). This method of financing is more transparent and reliable for investors, entrepreneurs, and markets, providing partial solutions to the many disadvantages exposed in ICO financing.