Bermuda's financial services regulator asked an audience in London last week to help set the record straight when the Island's reputation comes under attack.

Bermuda Monetary Authority chairman Cheryl-Ann Lister made the request at the Bermuda Society's 19th Annual Dinner at the House of Lords in London. In a revised version of the speech given to The Royal Gazette, she called on the guests, who included representatives and policy makers from the international business sector, to defend Bermuda's reputation in whatever sphere they operate in because "it is not a level playing field out there".

"If there is a problem with a US company, then negative comments are made about that particular company by the media and others. However, when something happens which has a Bermuda connection, the regulatory regime and Bermuda's reputation is brought into question. This is not only unfair but inappropriate," she said.

The chairman reaffirmed Bermuda's commitment to quality over quantity in terms of the type of business permitted to operate here and added that the Island has a good track record for maintaining a balance between a regulatory framework that meets international standards and ensures high standards of behaviour, and fostering an environment that remains attractive to quality businesses and enables them to grow and develop successfully.

"Our approach has contributed to the strength of the market and Bermuda's continued ability to attract quality business, such as the recent wave of new reinsurance companies established in Bermuda in the aftermath of Hurricanes Katrina, Rita and Wilma in the US. In all, this new wave of companies represents over $8 billion in new capital. Historically the Bermuda market has managed to attract new capital very quickly after such major catastrophes, and the signs are that this trend will persist," she said.

She also reiterated the Authority's commitment to hold extensive consultation with industry when developing regulations and its efforts to influence possible regulatory developments on the international front to ensure that Bermuda's long-term interests are not compromised.

She does not expect the pace and scope of regulatory change globally will slow down for the foreseeable future with hedge funds currently the 'hot issue' given recent negative media coverage and the January 2005 deadline in the US for the registration of hedge funds managers.

"In Europe, financial regulators are still grappling with standardisation issues and sorting through the practicalities of implementing blanket taxation initiatives like the European Union Savings Directive, designed to tax income EU residents receive from savings held overseas. Similarly in the US, the debate of the pros and cons swirling around the perennial question of federal versus state regulation across financial services markets has been given another breath in the wake of the Refco scandal," she said adding the BMA is obviously keenly aware of how these types of developments may impact the jurisdiction to varying degrees, directly and indirectly.

Mrs. Lister said that while further enhancements are planned for financial services regulations, they will be introduced carefully, in full consultation with industry, and are not designed to tip the balance but rather to refine and build on Bermuda's very sound and effective existing regimes.

"They also should not come as shock to industry. In the investment area for example, the proposed Collective Investment Schemes Act will require among other things registration of fund administrators. This is a practical change that is in line with global standards and not a particularly onerous or unexpected requirement for the industry, which has had extensive input as the legislation has been developed. On the banking side, the Authority is working with Bermuda's banks in preparation for implementing the new Basel II Accord, which will set new standards for capital adequacy and risk management requirements for the banking sector globally. And in terms of the insurance market, we have already made some changes to meet the recently introduced changes in regulatory standards and we will be consulting insurers on a small number of remaining elements of these new insurance principles, "