Final passage by Parliament of the Banks and Deposit Companies Act has paved the way for the Bank of Bermuda to have a second go at getting a much-desired overseas stock listing. The Act transfers the power to license and supervise local banks and deposit companies from the Finance Minister to the Bermuda Monetary Authority, which will be given more authority to ensure deposits are not put at risk. The Act also repeals the old Banks Act, which said banks must get special permission for exemption from the 60/40 ownership rule via passage of a private member's bill. In its place, it gives the Finance Minister the sole power to grant exemptions from the 60/40 rule, which limits foreign ownership in the Island's three banks, or any other local companies, to 40 percent. Bank of Bermuda chief financial officer Edward Gomez told The Royal Gazette yesterday that an application for 60/40 exemption would now be imminent. "The bank's very pleased that the Banks and Deposit Companies Act 1999 has now passed through the House and the Senate and we look forward to it passing into law,'' he said. The Act is to pass into law at Finance Minister Eugene Cox's "discretion''. When contacted, Mr. Cox said it is likely the Bill will come into effect "as soon as'' all the necessary resources to administer it are in place and the Governor signs it. This could be before year's end. Mr. Cox, declining to say whether or not at this time he supports the bank's bid for an overseas listing, said he will take a fresh look at any such application when it comes before him. Mr. Gomez said: "This is an important piece of legislation for Bermuda since it ensures that Bermuda's financial institutions have the appropriate legislative and banking regulatory standards in place to meet international expectations. "Passage of the bill results in a financial institution being able to request from the Minister of Finance an exemption from Bermuda's 60/40 ownership laws and we expect to submit such an application sometime in the near future.'' The bank's bid to get a secondary listing overseas on the Nasdaq stock exchange was dealt an unexpected setback last year when its private 60/40 exemption bill was turned down by Parliament after the PLP in a shock move voted against it. The PLP had contended that the legislation controlling the bank should be written in the body of legislation governing the Bermuda Monetary Authority as well as in the Bank Act 1998. Heavy trading in the bank's stock, in anticipation of the secondary listing, had driven the price to a high of $40 last year.

28 Bank listing But it fell to a low of about $25 when the bill was defeated.

The bank believes an exemption is needed in order to raise capital for overseas expansion, compete globally and to bring value to shareholders.

But opponents worry granting the bank exemption will set a precedent locally and open Bermuda to foreign ownership. Financial sources said it will be hard for the PLP to turn the bank down again now that the comprehensive legislation providing for 60/40 exemptions that the party had called for at the time, in justifying its betrayal of the Bank, is now in place. But a source added the question of foreign ownership is always a prickly one with the PLP.