Bank of Bermuda CEO Philip Butterfield said the Island could see further expansion of its banking sector ? but it would not be a "free for all".

Mr. Butterfield, during a speech last week at the Financial Planning Association of Bermuda's winter meeting, said Government would call the shots but he would expect to see further expansion of the sector following the bank's sale last month to multinational banking giant HSBC Plc.

The bank's sale, after 115 years of independence, to a foreign bank ? the first time in Bermuda's history that such a transaction had taken place ? was welcomed by Government as being in line with its stated intention to carefully open up the sector.

Last week, Mr. Butterfield predicted Government, in steering the course, would take a measured approach to how quickly and to what extent the Island's financial services industry would be allowed to expand.

"That is not my call, those questions should be asked of the Finance Minister. One thing I do know, multinational (banks) will make decisions in their own best-interest. It is possible some might decide they should be in Bermuda but the level it will increase is up to them. Government clearly cannot have a free for all. If they are opening up the sector; it will be done after structured discussion. But I think it will happen," he said.

Mr. Butterfield said it was likely that HSBC would expand its own presence on the Island. He said they had already committed to moving their trust business here, and would consider Bermuda as a base for some of its other operations.

"We have been chatting about redomiciling HSBC's trust business from the Caribbean to Bermuda but it will take a few months to finalise the transaction. That will take place in the first half of this year."

He said Bermuda had an excellent infrastructure and there was "every reason why other HSBC businesses will be considered for moving to Bermuda".