"Small and mid-sized investment houses face closure due to impossible regulations by the Securities Authority," said Federation of Israeli Chambers of Commerce president Uriel Lynn in a letter to Israel Securities Authority chairman Zohar Goshen, ahead of a Knesset Finance Committee discussion tomorrow on a bill to improve the Security Authority's enforcement procedures.
Lynn continued, "Some investment houses have decided to shut down their operations or to merge, while others are reviewing their business viability.
"Precisely now, when we're talking about reducing the over-concentration in the economy, the Securities Authority is undertaking measures that will increase concentration in the capital market. Every extra demand to protect the public should be balanced, and consider the ability of small and mid-sized investment houses to meet it."
Lynn alleges that the Securities Authority recently began to formulate draconian regulations, most of which carry heavy financial costs, which further burden the business survival of investment houses. "I fear that if this trend continues, it is liable to result in the establishment in another decade, again, of a committee to review over-concentration in the capital market, such as the Bachar committee," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2010
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