Israel ISA License Inquiry Process | Israel Securities Authority Compliance Guide

1. Introduction to ISA

1.1 Background

The Israel Securities Authority ( ISA ) was established in 1968 in accordance with the Israel Securities Law (1968) and is the core regulatory body of the Israeli capital market.

The objectives of an ISA are:

• Protecting investors' rights and interests

• Ensure transparency, fairness and efficiency of the capital market

• Combating financial fraud, insider trading, and market manipulation

• Promoting the alignment of Israel's capital markets with international standards

📌Official website : https://www.isa.gov.il

1.2 Scope of supervision

ISA's regulatory scope covers:

• Securities issuance and prospectuses

• Securities companies and investment companies

• Investment Advisers

• Mutual Fund Managers

• Research and Analysis Firms (Portfolio Management Firms)

• Exchanges (including the Tel Aviv Stock Exchange (TASE))

• Crowdfunding platforms and fintech pilots

ISA License Types

2.1 Investment Advisory and Portfolio Management

• Investment Adviser License

• Portfolio Manager License
  👉 Evidence: ISA Official Explanation of Investment Advisory and Portfolio Management Business Requirements
  https://www.isa.gov.il/sites/ISAEng/1489/1516/Pages/1489.aspx

2.2 Mutual Fund Management

• Mutual Fund Manager License
  👉 Case: Psagot Investment House Ltd. (one of the largest fund companies in Israel) is registered with ISA.

2.3 Securities Underwriting and Distribution

• Underwriter License (Securities Underwriting)

• Distributor License (Securities Sales)

2.4 Crowdfunding and Fintech

ISA launched the Innovative Fintech Sandbox in 2017 , allowing some fintech projects to operate on a pilot basis within the regulatory framework.

3. How to check ISA license

3.1 Official website query portal

ISA provides an online licensee lookup system:
👉 Licensees & Permit Holders Search

3.2 Query steps

Step 1: Enter ISA licensee query

• Open ISA License Search

Step 2: Select a category

• Investment Advisers

• Portfolio Managers

• Mutual Fund Managers

• Underwriters

Step 3: Enter company/individual name

For example: Enter "Psagot"

Step 4: Verify the results

The system displays:

• Company/Individual Full Name

• License Type

• Status (Active / Revoked)

• address

Step 5: Cross-validation

• Check the Tel Aviv Stock Exchange (TASE) official website to see if you are a listed/member company. 👉 https://www.tase.co.il

4. Query Examples

Example 1: Legal Investment Advisor

• Input: Meitav Dash Investments Ltd.

• Result: Shown in the ISA directory as a legally licensed investment advisory firm.

Example 2: Fund Management Company

• Input: Psagot Investment House Ltd.

• Result: ISA officially registered fund manager, status Active.

Example 3: Illegal Forex Platform

• Input: ABC Forex, an overseas foreign exchange website

• Result: No records found on the ISA system.

• and may appear on the ISA Investor Warnings page :
  ISA Investor Warnings

5. ISA Investor Protection and Warning Mechanism

5.1 Investment Warning

ISAs regularly issue Investor Warnings to warn investors against illegal companies.
👉 Investor Warnings

5.2 Penalties and Decisions

ISA will impose penalties on violators, including fines, license revocation, and criminal prosecution.
👉 Enforcement Actions

📌Case Study :
In 2021, the ISA issued a warning against an unregistered forex trading platform, explicitly stating that it provided unauthorized trading services to Israeli investors.

6. Advantages and Limitations of ISA

6.1 Advantages

• High transparency : The list of licensed institutions and penalty announcements are publicly available for inquiry.

• Strong investor protection : ISAs actively issue warnings and promote investor education.

• Innovative FinTech Environment : ISA promotes innovative regulatory pilots such as blockchain and crowdfunding.

6.2 Limitations

• Restrictions on retail forex business : The ISA does not authorize most forex margin trading platforms.

• Language barrier : There is little English information on the official website, and it is mainly in Hebrew.

• Limited market size : Israel's capital market is relatively small, making it difficult for international investors to obtain information.

VII. Investor Compliance Recommendations

1. First check the ISA official website directory : Licensees Search

2. Cross-validated TASE directory : https://www.tase.co.il

3. Heed investor warnings : ISA Warnings

4. Beware of fake licenses : The ISA has repeatedly warned against fraudulent platforms that forge licenses.

5. Avoid promises of high returns : the ISA has determined that such advertisements often involve fraud.

8. Conclusion

Israel Securities Authority (ISA) is the core regulatory body of the country's capital market, covering securities companies, fund managers, investment advisors and underwriters.

Before entering the Israeli market, investors should:

1. Verify the license in the ISA directory ;

2. Check investment warnings to confirm legality;

3. Cross-validation of the TASE inventory ;

4. Be wary of any overseas platform claiming to "hold an ISA forex license."

📌Official portal summary :

• ISA official website: https://www.isa.gov.il

• License Inquiry: https://www.isa.gov.il/sites/ISAEng/1489/1516/Pages/1489.aspx

• Investment Warning: https://www.isa.gov.il/sites/ISAEng/1489/1516/Pages/1490.aspx

• TASE official website: https://www.tase.co.il