It appears: the Israelis on Wall Street will be excluded from the worsening in reports in the US

The chairman of the SEC, Paul Atkins, who is currently visiting Israel on the occasion of the transition of the trading week in the Tel Aviv Stock Exchange to Monday through Friday, said today (Fri) that most Israeli companies are not expected to be affected by the worsening. According to him, the American authority is particularly concerned about manipulations taken by Chinese companies that incorporate in places such as the Caribbean, and then take advantage of the FPI status to enjoy ease when registering for trading on the stock exchanges in the USA.

Compared to the Chinese companies, Atkins emphasized, the Israeli companies share a corporate regime similar to that of American companies, and there is no concern about the protection of their investors. Atkins spoke as part of a meeting with journalists that took place at the Tel Aviv Stock Exchange.

The words of the head of the SEC come after talks with the Americans conducted by the Israel Securities Authority, headed by Sefi Singer, regarding the planned tightening of the rules for foreign issuers. The PA’s delegation visited the US in May 2025, and now the PA is optimistic that soon a way will be found to exempt the Israeli companies from most of the strict rules. At the same time, the PA emphasizes that the final decision rests with the SEC, and that it has not yet been made.

According to the existing rules in the USA, a company enjoying the status of FPI is exempt from submitting quarterly reports and from providing personal disclosure regarding executive salaries, and can be content with an annual report. The company also benefits from the ease of the immediate reports it must submit regarding current events and may not report according to the generally accepted accounting standard in the United States (US GAAP), but according to the IFRS standard used in Israel, while making adjustments.

As part of the planned tightening, in order to benefit from the FPI status, the foreign company will have to prove that a minimum amount of its shares are traded outside the US, that it is listed for trading on a foreign stock exchange, and that it is subject to the requirements that inform Americans regarding reporting and corporate governance in the country of origin. Currently, some companies are incorporated in countries known for the far-reaching concessions they grant to companies, such as the Virgin Islands British (BVI) and Cayman Islands.

As mentioned, at this stage it appears that the SEC is looking at ways to exclude Israeli companies – which are the second largest group among foreign issuers in the US, after China – from most of the aggravations, and to apply them mainly to Chinese companies. This, as part of the trade war that President Trump is leading against China.