Investment companies offering local services have less than two weeks to apply for a licence or ask for an exemption.

June 30 is the deadline for companies to submit their applications to the Bermuda Monetary Authority bringing them in line with the Bermuda Investment Business Act which took effect on January 1 2000.

The Act made it necessary that any person or company carrying out investment business in or from Bermuda must be licensed to do so.

General manager of the Bermuda Monetary Authority, Munro Sutherland, said yesterday that just over 40 companies had submitted their applications, while "several hundred'' had requested exemption.

"I suspect there is still a very small number who have not yet handed in their applications,'' he said.

But Mr. Sutherland was hesitant when asked how the Authority would determine if all who needed to apply had complied with the law.

"We will carry out checks through things like the yellow pages to try to assess that everyone who needs to apply, has,'' he said.

"Some people have been very slow in waking up to the idea that they had to do this.'' The Act allows for exemptions to businesses or individuals that are dealing with high end investors. These areas are laid out very specifically as Sophisticated private investors; those who are sufficiently knowledgeable in financial and business matters and who are capable of evaluating the merits and risks of an investment.

High net worth private investors, where the total assets over total liabilities of an individual together with a spouse are greater than $1 million.

High income private investors, where the income of an individual in the last two years is in excess of $200,000 or together with a spouse is $300,000.

High net worth corporations /incorporated associations -- those which have net assets in excess of $5 million.

Collective investment schemes which are registered under the Bermuda Monetary Authority.

Provisions are also made for companies which are registered in Bermuda but conduct no local business and for certain long-term life insurance business, to be exempt.

The Act defines investment business by the activities undertaken in relation to securities and includes dealing in securities, arranging deals in securities, managing securities and providing investment advice in relation to market securities.

All of the following are considered securities under the Act; shares, debentures, loan stock, warrants, options and futures.

Also considered securities are: any rights listed on an exchange, interests in limited partnership, rights under contracts for differences and under contracts comprising long-term insurance business and units in a unit trust scheme.