Bethel Finance: Akiva Mozes: Regulator stifles Israeli companies

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"Regulation by the Israel Securities Authority imposes unreasonable personal exposure. As the man who heads a global company, I can say that managers' exposure in Israel is out of line with norms outside the country," said outgoing Israel Chemicals Ltd. (TASE: ICL) CEO Akiva Mozes and the Association of Publicly Traded Companies in Israel conference in Tel Aviv. The association is marking its 20th anniversary.

Mozes was referring to administrative enforcement initiated by the Securities Authority, which gives it broad powers, such as imposing a NIS 5 million fine on a company, a NIS 1 million fine on an individual, forbidding an individual from holding a position, and imposing restrictions on licensing. "In Israel, there is no equilibrium and we live in an era in which regulators see their job as enforcement and as something that is part of economic growth. Regretfully, instead of providing a tail wind, we have to deal with a headwind," he said.

Mozes believes, "Enforcement against lawbreakers should be increased, but eased against companies that behave properly… Attitudes towards executives are different in Israel. Half of Israel Chemicals' operations are overseas, and we see the right balance there in regulatory attitudes. We've recently been witness to a wave of class-action suits and anyone who says that this does not affect companies is blind."

"Regulators continue to impose strict limits on Israeli public companies. Recently, we've seen a struggle against top officeholders, and I would be lying if I said that this does not affect companies' management. Regulation should intervene less in companies' management and policing their managers. We live in a period when regulators are not concerned about fostering economic growth."

"In the past year, we had a lot of talk about social justice - livelihoods, jobs, and a developed economy. For the economy to continue to grow, a developed and thriving business sector is needed. I hope that the sector will continue to contribute to society and the economy."

Mozes's four-year term as chairman of the Association of Publicly Traded Companies ended today, as part of his pending retirement from Israel Chemicals. He will be succeeded by Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT) chairman Dan Goldstein, who has previously held the post.