Estrategias del Plan Estratégico de Marketing

The electronic reporting project is an internet-based information system for the collection and distribution of the entire range of reports required of entities subject to

ISA's supervision: corporations, mutual funds, investment advice firms, portfolio

management companies and underwriters. The project is designed so as to harness electronic communications technology and the internet to service the investing public and the entities supervised by the ISA.

The system handles all types of reports, including: prospectuses, annual financial statements, interim financial statements, immediate reports, reports on changes in the holdings of principal shareholders, reports on private allocations, purchase offer reports

and reports on conflicts of interest in corporations. The system also handles

prospectuses, immediate reports and monthly reports of mutual funds, forms for portfolio management companies, etc.

The project's objectives are as follows: to provide the public with immediate access to

public information; equal distribution of information; increase efficiency of the supervision over the reliability of information; and to provide new analysis tools.

Since the day the system first became fully operational (in November 2003) and until the end of 2010, thousands of authorized signatories have signed up to use the system, 597,559 different reports were handled, including 116,175 in 2010 alone. These reports reached ISA staffers automatically, through the reporting website. Public reports were automatically distributed through the distribution website, as well as to the Stock Exchange and commercial information distributors. Thousands of users surf the system’s website (www.magna.isa.gov.il) daily, accessing the different reports of the aforesaid entities as well as processed data reports.

The project is among the most advanced of its kind worldwide, and is based on the most

updated and advanced technologies in existence today. It provides technological

solutions to such complex issues as unequivocal identification of those submitting the reports and information security. It has even won a number of prestigious IT excellence awards.

During 2010, a significant number of improvements have been implemented, such as: development and installation of new versions and adjustments of report forms to ongoing changes in legislation. For the fifth year running, the system played a significant role in the ISA's winning the Accessible Governmental Agency Award, in a competition conducted by the Finance Ministry among all Government ministries and public sector entities in the field of public service IT systems.

During the reporting year, the Department updated, changed and improved – on an ongoing basis - the MAGNA System, pretesting changes and verifying compliance with SLA (Service Level Agreement) requirements with the external service provider. This year, the Department implemented five new versions, which included approximately 180 changes, and conducted ongoing SLA supervision.

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Table 27: Summary of 2010 Data Number /

volume

Total reports submitted through MAGNA - annual 116,175

Total volume of reports for 2010 30GB

Public reports submitted through MAGNA - annual 96,447

Non-public reports submitted through MAGNA - annual 19,728

Total reports submitted through MAGNA – Israeli Corporations 85,604

Total reports submitted through MAGNA – annual - dual-listed

corporations 2,555

Total reports submitted through MAGNA – annual - mutual fund

managers 23,463

Total reports submitted through MAGNA – annual – underwriters and

underwriting firms 481

Total reports submitted through MAGNA – annual - investment

advice companies 162

Total reports submitted through MAGNA – annual – investment

portfolio managers 2,875

Total reports submitted through MAGNA – annual - investment

marketing firms 429

Total reports submitted through MAGNA – annual – mutual fund

trustees 397

Total reports submitted through MAGNA – annual – purchase

offerors which are not publically traded companies 38

Total reports submitted through MAGNA – annual – banks as

employers of investment advisors 171

Total active forms on MAGNA 381

Total active forms on MAGNA – Israeli companies 140

Total active forms on MAGNA – dual-listed companies 27

Total active forms on MAGNA – mutual fund managers 98

Total active forms on MAGNA – mutual fund trustees 16

Total active forms on MAGNA – investment advisor firms 17

Total active forms on MAGNA –investment portfolio managers 21

Total active forms on MAGNA – annual – banks as employers of

investment advisors 10

Total active forms on MAGNA – underwriting managers 24

Total reports submitted through MAGNA – annual – purchase

offerors which are not publically traded companies 11

Total active forms on MAGNA – investment marketers 17

Total active signatories in the system 2,459

Main activities in 2010: a. Infrastructure upgrades

Due to technological progress and new software and hardware products on the market, the MAGNA was upgraded to support new operating system Win7, conversion software Adobe Distiller 9, and the assimilation of Internet Explorer 8 was completed. Following these upgrades, the system now supports a wide range of operating systems and browsers used by reporting entities and members of the public visiting the website, both from Israel and abroad.

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In addition, a number of significant infrastructure projects were initiated, using existing products: improvement of reporting site mechanisms; establishment of a new portal for commercial information providers, which are now connected to the system in order to receive MAGNA reports; improvement of the interface of the DRP (Disaster Recovery Plan) site of the system, etc.

b. Reinforced information security

Following a directive issued by the Approver Registry at the Ministry of Justice, and in light of information security risks, which have worsened over time, the electronic signature system was improved. The purpose of this project was to improve information security and to prevent, as far as possible, break-ins, disruptions, and impersonation. The encoding of messages is now consistent with the SHA2 Standard, and the signature key was upgraded to 2048 bytes.

c. New maintenance tender for MAGNA

The current agreement with Teldor for developing and maintaining the MAGNA system is due to expire towards the middle of 2011. In light of the system's great complexity and importance, an overlap period of several months is required with

whichever company will be awarded the tender. The ISA has issued a tender for

the selection of a substitute provider, which will develop and maintain the system over the next few years. The tender is in its last stages, and the winner will be selected in the first quarter of 2011.

d. Personal MAGNA

The Personal MAGNA service, which aired in 2010, enables website surfers to register in order to receive real time alerts regarding the publication of reports. Alerts include links to report pages. Registered members can define up to ten different rules regarding reports or companies of interest. It is possible, inter alia, to define reports on principal shareholders in specific companies, specific financial statements of specific mutual fund managers; all financial statements published by reporting companies; etc.

e. MAGNA system administration

Another MAGNA-related field is system administration and the handling of reporting entities and persons authorized to report, including those applying for

authorized person status. This year, the ISA processed approximately 700 forms

authorizing or canceling authorized signatories. In addition, approximately 930 certificate extension applications were processed, approximately 190 new entities were registered, and approximately 190 detail update forms were processed. During the year, 59 entities changed their names, and 220 entities updated their details on MAGNA. In addition, the ISA sent approximately 150 inquiries to corporations due to discrepancies between reported data (such as incorrect ID numbers), and approximately 240 additional inquiries to companies for failure to meet the statutory requirements for the minimum number of

authorized corporate signatories. Furthermore, the ISA processed the closing of

corporations and other entities which ceased being reporting entities, improved its database concerning principal shareholders and replied to inquiries and questions submitted by reporting entities. Additionally, approximately 2,900

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identification number verifications were carried out, mainly for advisor licensing applicants.