(Reuters) – Israel plans to ease regulation of smaller companies while tightening oversight of auditors and ratings agencies to bring Israel to international standards and lower the cost of raising capital.

The Israel Securities Authority (ISA) said it would set up an agency similar to the Public Company Accounting Oversight Board in the United States to start regulating auditors.

It would also extend scrutiny to credit rating agencies and fast-growing alternative foreign exchange trading systems that have led to new regulations globally.

Yet, the ISA aims to ease regulation of smaller companies, such as expanding a firm’s shelf prospectus to three years from two to lower the regulatory cost.

“We should be open about regulation and in cases where the regulatory burden is too much, we should … do something about it,” ISA chairman Shmuel Hauser told Reuters after a news conference.

“We came up with a long list that can lower the regulatory burden without any harm to investor protection.”

Some of the proposals, which Hauser believes will increase regulatory certainty and transparency, will require legislation and parliamentary approval.

Others, such as the easing of regulations, will be open to public comment for three months before final decisions are made..Read More>>

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