And bank president Mr. Michael Collier has also backed Finance Minister the Hon. David Saul's plans to improve consumer protection in the investment advice and fund management services sector.

Mr. Collier said: "One of the non-financial effects of the deregulation of Bermuda dollar interest rates will be, we believe, the need for introduction of truth-in-lending legislation in the near future; this will ensure that the Bermudian public will have the right to see disclosed by merchants and service-providers the true annual cost of credit associated with buying consumer items on credit terms, or borrowing money, before committing the transaction.'' Dr. Saul announced plans for truth in lending legislation in the Budget, in which the seven percent ceiling on interest rates was abolished.

Banks and deposit companies have traditionally lent money at seven percent with a two percent service charge. With the abolition of the ceiling, lenders can compete with different rates.

Mr. Collier said: "We support the Bermuda Government's Budget presented by the Minister of Finance, and three items of considerable note are the repealing of the 10 percent overseas investment tax, the removal of the ceiling to Bermuda dollar interest rates, and rationalising the Customs tariff.'' Removing the artificial interest rate ceiling will enable the bank to provide a broad menu of competitive credit pricing, and the 10 percent overseas investment tax will encourage, rather than discourage, Bermudians to diversify their savings, thereby strengthening the Island's economy, he said.

Mr. Collier also said he backed a tightening of supervision in the investment management field, which as seen a flood of new entrants in the last four to five years.

"Although Bermuda has enjoyed legislation regulating banks, deposit companies, mutual funds and (more recently) trust companies, presently there is no legislation establishing minimum standards of expertise and qualifications of those who set themselves up to provide investment services to the public,'' he said. "We believe there is a notable gap in Bermuda's consumer protection legislation, and officers in this Bank are ready and willing to assist Government in shaping the most appropriate legislation in this area.''