Bermuda's offshore investment opportunities more competitive.

The Trusts (Special Provisions) Amendment Act 1998, and The Limited Partnership Amendment Act 1998 were both unanimously passed.

Government Senator Allan Marshall introduced the amendment to the Trusts (Special Provisions) Act 1989 saying it clarified and updated the requirements and definitions of purpose trusts.

"Bermuda's model was very conservative, and some of the safeguards we put into place are outdated,'' said Sen. Marshall.

A special purpose trust allows the setting up of a trust relationship without requiring a corporate structure.

The amendment allows trusts to be used for non-charitable purposes, and streamlines existing legislation in terms of who can be a trustee.

Sen. Marshall said the amendment eliminated the need for one of the trustees to be a "designated person''.

Under the new legislation, Bermuda will also do away with a register of purpose trusts on the Island.

He said the new legislation reflected development in other jurisdictions such as Canada and Turks and Caicos.

The amendment was drafted in consultation with the Bermuda International Business Association (BIBA) trust committee, and with the Law Reform Committee.

Opposition Senator Terry Lister praised the effectiveness of BIBA's trust law and practice committee's recommendations.

But Sen. Lister noted that although the change in law was a positive one, he reckoned a chartered accountant or a lawyer would be involved in trusts anyhow.

Government Senator Lawrence Scott called the amendment a "tribute to ingenuity'' and said it reflected the freedom of investment opportunity available in Bermuda.

The second piece of legislation, The Limited Partnership Amendment Act 1998, amends the Act of 1883.

The amendment is geared toward allowing the name of a limited partner to be incorporated in the name of a partnership without leading to a loss of the partner's limited liability.

The amendment also allows a limited partner to participate in the investment strategy of the partnership without partaking in the management of the partnership.

A third clause clarifies the liability of limited partners who make withdrawals of capital from the partnership.

In the case of a lawful reduction of capital a limited partner's liability to the partnership or creditors continues for a period of one year. The liability is only related to matters arising before the capital was returned or released.

In the case of an unlawful reduction of capital the limited partner's six year continuing liability for the sum will be extended to creditors if the partnership has been dissolved and to interest on the capital sum.

Sen. Lister said the limited partnership amendment was US-based.