40 percent stake in the deposit company to brokerage house, First Bermuda Securities (FBS), in the name of FBS Capital Ltd. But the parties have not yet been able to knot a management agreement that would give First Bermuda control over the deposit company's future direction. FBS joins Argus Insurance (49 percent) as the major stake holders in the Island's quietest and possibly smallest deposit company, with funds of between $25 million and $27 million under its care. The deal still leaves the shares of the company closely held.

But it could pave the way eventually for a different look to BS&L, because of the progressive nature of FBS. And it leaves the remaining approximately 11 percent of the shares in the hands of nine shareholders, including Mr.

McBeath, a founding member. In an ever-changing financial landscape, the investment environment is producing more opportunities, even within the limited confines available to non-banking financial institutions.

The sale comes 18 months after LP Gutteridge's deposit and real estate companies were merged with those of the Bank of Bermuda to form Bermuda Home.

At the time LPG said deregulation of the interest rate ceiling and foreign exchange controls would make it difficult for smaller deposit companies to survive.

The merger created a company with about 42 percent of the Island's mortgage market and led to speculation that further consolidation would follow, although that does not yet appear to have happened.

It is believed by many that a dynamic deposit company could take advantage of the increasing investment consciousness in Bermuda. It is not unnatural for new owners to want to increase the value of their equity, by strengthening their acquisition. Securities dealers are likely to understand that concept as well as any. It is a fair assumption that there are already plans to add to the services now provided, without substantially adding to what has always been a skeleton staff. It is also expected that the company will offer some new financial products. FBS already offers a mortgage backed security.

Shareholders of BS&L, from largest to smallest, are now: Shareholders Shares Argus Insurance 121,623 F.B.S. Capital Ltd. 100,000 Estate of W.J. Davis 10,000 Sheldon Leon Perinchief &/or Lillian Fiona Perinchief 7,250 Harry Kessaram &/or Eleanor Rosemary Kessaram 6,250 Duncan Campbell McBeath 2,874 Peter J.C. Smith 1,000 A. Norwood Vinton Smith 1,000 D. Campbell McBeath 1 E.J. Sainsbury 1 J.P. Chiappa Jr. 1