Opposition members were concerned that an 89-page financial Bill passed in the House of Assembly was overkill.

As Shadow Finance Minister Grant Gibbons pointed out, the original Investment Business Act from 1998 was only 26 pages. The 2003 upgrade is nearly triple that.

Acting Finance Minister Paula Cox said the Bill was intended to strengthen Bermuda's regulatory framework and the investment marketplace in general. Some of the key aspects were: to achieve enhanced rules for fitness and propriety of senior executives, directors and controlling shareholders to apply equally to all investment activities; an improved framework for supervision of management controls including record keeping, information control and codes of practice; and effective information exchange procedures for the sharing of information with other supervisors - a major concern of the Financial Stability Forum.

The Bill should also achieve clearly stated powers of investigation, procedures and inspection of investment providers; regulation of securities exchanges; protection of investors as appropriate (recognising that the needs of investors are diverse); and the effective discipline of licensed providers by enabling the BMA to publicly reprimand persons who do not comply with the standards. Other key aspects of the Bill are to provide for the political and economic scrutiny of the industry by the Finance Minister; to set down reasonable standards for codes of practice; and to retain a flexible and competitive approach so that our investment sector both domestically and internationally may continue to grow successfully.

"The Bill is a comprehensive piece of legislation which covers any person who is in the business of providing investment services," Ms Cox said. "There will be provided for in the Bill many of the standards which are now in place world wide dealing with vetting of controllers, sharing of information and expansion of the powers of the regulator to inspect and investigate.

"These new provisions will ensure that our regulatory process is sound." The Bill would also address issues which have arisen in the dynamic investment business since 1998, she said. It does not attempt to regulate business which is physically located in another jurisdiction although registered in Bermuda, however it does regulate business based in Bermuda and carried on in and from Bermuda.

It also widened the existing powers and responsibilities of the BMA, for example giving it oversight of the Bermuda Stock Exchange.

"This Bill is complex because the industry is complex," said Ms Cox. With significant input from the business community in the Bill, she added the Ministry wants that dialogue between Government and private sector to continue. However, led by Dr. Gibbons, Opposition members complained about the complexity of the Bill, and voiced concerns about the regulations it imposes.

"One of the reasons we've been so (economically) successful (in Bermuda) is the partnership between Government and the private sector," he said. "Legislation (such as the Insurance and Companies Acts) was clear, simple ... had a certain clarity." While agreeing everyone recognises the importance of regulating the investment business, Dr. Gibbons said there also needs to be a balance between the regulation and what is appropriate for Bermuda as a unique off-shore jurisdiction.