Any regulatory action taken against Lines Overseas Management will not be made public unless the company chooses to disclose the information, the Bermuda Monetary Authority said this week.

The statement comes after the US Securities and Exchange Commission countered LOM?s statement to a US District Court that that the BMA had completed its investigation of LOM?s conduct regarding Sedona Securities in 2003 and as of the date of the filings, the BMA had taken no action.

?LOM thus created the impression that the BMA had found no basis upon which to take action against LOM for violations of Bermudian law or for other regulatory lapses,? the SEC said in a report to US District Court Judge Richard Roberts.

The SEC turned to the US District Court in 2004 to enforce four administrative subpoenas served on LOM and its managing director Scott Lines which related to the SEC probe of alleged market manipulation involving Sedona. The judge has since ordered compliance with the subpoenas.

The SEC said that it learned in fact that on December 2, 2005: ?LOM reached a resolution with the BMA related to the BMA?s Sedona investigation into LOM?s conduct. As part of that resolution, LOM demanded that the terms of the resolution be kept confidential from the SEC, the investing public and consequently the courts,? the SEC said.

The BMA told this newspaper however that legislation ? not the regulated entities ? impose on the Authority ?strict restrictions on the disclosure of information to third parties?.

?This means that except under limited circumstances the Authority is generally precluded by law, as opposed to any agreement with any particular company, from disclosing details of regulatory actions or decisions related to specific entities or individuals.

? Those circumstances relate to revocation of licences or public censure for an entity, which may be publicised,? the Authority said.

It is allowed however to ?provide assistance, where appropriate, to overseas regulators seeking information about Bermuda regulated entities, provided the request for information is in compliance with current legislation and is required for regulatory purposes?.

?Historically the Authority has assisted bodies such as the SEC in this manner and we will continue to cooperate with international authorities as far as possible whenever appropriate,? the Authority said.

The SEC has employed the BMA?s information sharing agreement to seek ?all documents concerning the Authority?s investigation of LOM?s role in the alleged Sedona market manipulation?.

It says however that it is still waiting for copies of BMA interviews with Scott and Brian Lines, a copy of the BMA?s inspector?s report provided to LOM and copies of any notices that LOM received regarding the BMA?s intent to take regulatory action against LOM or any individual as a result of its probe.

LOM has not responded to this newspaper?s query into whether such notices exist although the company previously said that certain regulatory issues arising out of the Sedona case have been resolved to the Authority?s satisfaction on the basis of changes made by LOM companies to their management and control arrangements, together with undertakings regarding further enhancements to LOM?s compliance regime and management structure.

These changes have not been publicised although last year Brian Lines, 42, resigned as LOM?s president and was replaced by his father Donald, 74.

A LOM statement at the time said the resignation came in the midst of the unresolved SEC probe and Mr. Lines felt it was in the ?best interest of the company, shareholders, employees and customers, for he hopes this might improve the company?s ability to resolve the matter and move forward?.

The SEC said in its court filing that it has been able to obtain a portion of the documents it sought under the Sedona subpoenas by making formal requests to regulatory counterparts in the Bahamas and Cayman and obtaining the documents from LOM affiliates.

However several categories of documents still have not been produced by the LOM affiliates, the SEC said.

LOM?s counsel plans to file a response to the SEC?s report in which they ?look forward to demonstrating the inaccuracies?.