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The Knesset Finance Committee approved yesterday regulations that require investment advisers to keep records of every advisory session with customers. The regulations set out a standard format for keeping such records.

Finance Minister Roni Bar-On submitted the regulations to the Finance Committee for their approval in conjunction with the Israel Securities Authority (ISA).

The new rules are meant to provide a way to supervise and follow up on the investment advisers so as to enable an examination of the advice they provide customers over the long term, and to check whether the advice is appropriate for the specific customer.

Bar-On explained to the committee in a letter that the records will also protect the advisers in suits filed by customers or third parties.

Such advisory sessions require interaction with customers in real time, under pressure with limited time and therefore, the new regulations provide a framework to record the information quickly, wrote Bar-On to the committee.

The rules will allow quick record keeping without an onerous burden on the adviser, he added.

The committee also approved other securities regulations regarding application fees for permission to publish a prospectus. Today, companies are required to pay the ISA a fee based on a fixed amount plus another 0.03 percent of the value of either total amount raised, or the stipulated price for the securities - the higher of the two.

But it turns out that in the case of private placements or securities paid as a dividend where the proceeds are not in cash, the fee can turn out to be quite low: well below the true value of the securities.

Now the companies will have to pay fees based on the true value.