international investment management centre, the general manager of the Bermuda Monetary Authority has said.

Mr. Malcolm Williams, speaking at a seminar on financial services and the capital markets -- `The Way Ahead for Bermuda', said Bermuda's business environment "provides a comprehensive package of attractions well-suited to serve the needs of discerning corporate and/or private investors.

"Bermuda offers a great deal in regard to its ability to provide investment services and there is, perhaps, a growing need to focus further attention in this area.'' The seminar was sponsored jointly by the law firm Milligan-Whyte & Smith and First Bermuda Securities. Mr. Williams was one of three speakers who also included lawyer Ms Audette Exel, who specialises in international banking and finance, and Mr. Michael James, director of the debt markets group at Merrill Lynch in New York.

Mr. Williams said that over the past few years there has been much discussion about Bermuda's role as a financial centre. He said there has been skepticism, and even outright rejection, of the possibility of Bermuda becoming a financial centre from those who see the benefits of doing so as "modest'' compared to the benefits of tourism to Bermuda.

But Mr. Williams pointed out that judging by the balance of payments figures over the past five years, opponents can see how beneficial the international financial business has been for Bermuda. He said that during that time, the sector has generated over $1.5 billion in income for the Island.

He said that as the Island has no natural resources, it must depend on exporting its skills, location, stability laws, policies, its principles and standards.

He suggested that: It is essential to have firm but flexible legislation and regulations in line with international principles and standards.

The markets should decide what, how much and where they want to operate. He said it should be Government's task only to inhibit or foster certain types of economic activity.

Government should concentrate on providing the economy with general market related operating conditions and it should only intervene in the market mechanism where market forces fail to operate to a serious extent.

The Bermuda Exchange should be enhanced and in doing so should have a supervisory body looking over its activities and enforcing regulations. The body should ensure that the interests of issuers and investors are protected and that access to the Exchange and capital markets is open and unrestricted.

There should be increased investor protection and financial supervision. Mr.

Williams said the move of introducing supervision into Bermuda, at a time when confidence in the world's banking and financial system generally has come into question, will only enhance the "already outstanding'' reputation of Bermuda's banks.

Mr. Williams said the formation of the Trust Companies Act 1991 was "a positive move towards enhancing Bermuda's role as a comprehensive financial centre''. He said the new legislation would bring additional business to Bermuda offering related products either directly or through subsidiaries set up in Bermuda.

"Indeed, I consider that trust and general fiduciary work are capable of substantial growth,'' he said. "As there is a clear need for Bermuda to diversify its products (and remain diversified) to as great an extent as possible such new business opportunities can only assist in cultivating the development of Bermuda as a premium financial centre.''