The executive committee of the International Organization of Securities Commissions (IOSCO) has approved a request made by Israel Securities Authority (ISA) Chairman Prof. Shmuel Hauser to join the European Regional Committee (ERC) as a full-fledged member.
The decision follows the unanimous approval of the request by the committee's 24 members at the organization's annual conference held in China last May.
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The request was due to diplomatic restrictions preventing Israel from acting as an equal member in the Africa/Middle East Regional Committee (AMERC) since Israel joined the IOSCO.
membership in the ERC will replace its membership in the AMERC.
On the backdrop of the political and security-related situation in the Middle East, the ISA has been prevented from attending the AMERC's discussions and meetings, some of which are held in countries Israel has no diplomatic relations with.
"This is an honorable accomplishment for Israeli regulation," said ISA Chairman Hauser. "This decision reflects the European recognition of Israeli regulation as professional and of high quality, meeting the highest international standards.
"This is an important step which brings us closer to mutual recognition of the quality of regulation in securities laws between Israel and countries of the European bloc, as part of the regulatory road map for the coming years in the capital market."
Advocate Oranit Kravitz, director of the International Affairs Department, said that "one of the main goals of the road map is to increase the status of the Israeli capital market in the world, while building a regulatory infrastructure which meets the most advanced standards.
In addition, reinforcing regulation is crucial for dealing with the constitutional risks challenging the capital market in Israel and abroad. For this purpose we must cooperate with corresponding regulators, and one way to do so is through the European Regional Committee of the IOSCO."
She added that the "ISA's admission into the ERC is an important step in promoting the mutual recognition the ISA is working on with European countries, a step which will make capital raising possible for Israeli companies and allow Israeli companies to raise capital in Israel."