industry could attract unscrupulous operators.

And in anticipation, a new Investment Advisory Services Act is being drafted by the Bermuda Monetary Authority in consultation with various representatives within the investment industry, according to investment manager, and Chartered Financial Analyst (CFA) Mr. David Notman.

Speaking to members of the Hamilton Rotary Club, Mr. Notman said that the new act would protect investors and the reputations of honest investment professionals.

Mr. Notman is director and president of Interinvest (Bermuda) Ltd., an exempted, international investment firm operating from Bermuda. He opened his own investment management firm, Bridge Investments Ltd., a year ago after a quarter of a century in the investment field.

The two firms have a working relationship, enabling Bridge Investments to access Interinvest's research and provide business introductions. Mr. Notman spent nearly a dozen years heading up the investment division of the Bank of Butterfield Executor and Trustee Company Ltd., and, apart from other accomplishments, he was believed to have become the first Bermudian CFA in 1984. He told Rotarians, "Anyone who merely sells investment products can hang up a shingle and call themselves an investment manager or investment advisor. Fortunately, it would appear to me that Bermuda has so far been spared from these types of self-styled investment managers and advisors.

"However, I suspect that as financial markets in general, continue to rise, we will see more and more people wanting to start up their own investment management business.

"Many of these people will have never seen a bear market before and I would expect that some of them may lack the integrity and professional training which is essential to serving the public interest.

"For these reasons it is important that the public be protected from charlatans and unscrupulous operators by our encouraging the development and adoption of internationally recognised professional standards, including codes of professional conduct and ethics.'' Mr. Notman said that not only will such safeguards be assured with the new Act, but the Island's image and reputation in providing professional investment services to the domestic and international community will be enhanced. He said that more people will be attracted to the investment industry because unlike setting up a bank, insurance company or large retail business operation, capital and staffing requirements are not as great.

Mr. Notman suggested the new Act will give the public "some recourse against incompetent and unscrupulous operators.''