On July 4, 2016, the ISA published a legal position regarding its new interpretation of the exemption clauses in the offering and sale of securities to the public. The update has a significant impact on the format of the existing operations of many investment entities. We recommend investment entities to consult with us regarding the necessary adjustments.

The following is a summary of the material points:

  1. The scope of permissible "general publication" that will not constitute a prohibited offer of securities to the public was significantly narrowed:
    • In accordance with the ISA’s position, it is prohibited to publish information regarding price, interest rate and yield (or expected return) regarding the proposal;
    • It is forbidden to publish information concerning previous financial issues;
    • It is forbidden to publish future revenue in other projects or investments of the company;
    • It is forbidden to publish the average or specific revenue or yields from previous investments;
    • It is forbidden to publish data regarding the financing of a project; costs; estimated selling price; sales or volume of past investments, or any other financial figures;
    • A company may publish the required minimum investment amount from investors; the field of activity (such as real estate, high-tech), product type (in relation to real estate investment assets: the property location and the characteristics).
  2. Resale: when counting investors there is no need to consider an investor that was offered a previous proposal within a period of 12 months. 

 For the full proposed draft (Hebrew) – click here