Psagot Ofek head Gabriella Ravid and her deputy, Dan Silbiger, have quit, which means that the Securities Authority appeal is a matter of principle.
The Israel Securities Authority today filed an appeal with the Supreme Court against decision on the matter of outgoing Psagot Ofek Investment House Ltd. general manager Gabriella Ravid by Tel Aviv District Court Yehuda Zaft. Ravid andd Psagot deputy general manager Dan Silbiger resigned after the decision, which means that the Securities Authority appeal is a matter of principle.
Zaft ruled that the Securities Authority lacked the authority to grant of a license to York Capital Management LLC, which acquired Psagot Ofek, on the condition of the ouster of Ravid and Silbiger. He ruled that they could not be forced to resign merely because of the findings of an investigation against them or of a decision to file an indictment, but only after a court verdict.
In its appeal, Securities Authority said that a ruling that negated the regulator’s authority to restrict the terms of office of executives and licensees because of their damaged credibility was liable to have repercussions that extend beyond the remit of the Securities Authority and harm the effectiveness of other regulators, such as the Bank of Israel and Ministry of Finance Capital Markets, Insurance and Savings Supervision Department in reviewing the reliability of license applicants in their jursidictions.
Published by Globes [online], Israel business news - www.globes.co.il - on December 27, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006