Armed with new legislation making the Island a cheaper place in which to set up a mutual fund, a Bermuda delegation will be shopping for customers at a major conference in California next week.

The Bermuda International Business Association (BIBA), and Development, Opportunities and Government Services Minister Terry Lister will be hosting a breakfast meeting on March 23 at the Mutual Funds and Investment Management Conference in Palm Springs, California.

BIBA board member Gregory Haycock said up to 200 delegates were expected to attend the breakfast meeting along with 20 local representatives from the mutual fund sector. Mr. Lister will speak before the group.

About 4,000 delegates are attending. Mr. Haycock said the delegation would give a briefing on new legislation implemented last year giving Bermuda a more competitive edge in attracting mutual funds to the Island.

He estimated that it cost about $20,000 to set up a mutual fund in Bermuda, depending on the complexity of the structure, making the Island more expensive than its competitors. The legislation had helped bring that cost down, he said.

Last year, Bermuda amended legislation to classify mutual funds, known as collective investment schemes, into three groups. The legislation also allows funds to market locally in Bermuda. The legislation set out three classes of schemes: UK recognised schemes, institutional schemes, and standard schemes.

Most collective investments would fall under the standard scheme designation.

The UK-recognised classification is for funds and unit trusts marketed in the UK, and which need to meet that country's requirements. Funds and trusts falling under the institutional classification will have lighter regulation.

Breakfast bunch: Bermuda International Business Association board member Greg Haycock (left) and Development, Opportunity and Government Services Minister Terry Lister yesterday discussed plans for marketing the Island at a breakfast meeting in California next week.

BUSINESS BUC