Industry participants in the KPMG report were unfazed with the findings released on Friday.

Munro Sutherland, general manager of the Bermuda Monetary Authority (BMA) along with Greg Wojciechowski, chief operating officer of the Bermuda Stock Exchange (BSX) said the report held no surprises and that many of the suggestions it contained, had been identified by them prior to the probe.

Mr. Sutherland described as "not a gigantic issue'' the report's suggestion that the BSX fall under the BMA's jurisdiction. He and Mr. Wojciechowski explained that the BMA already had responsibility for the regulation of the local stock exchange.

"The BSX was been incorporated by a private act,'' said Mr. Wojciechowski, "according to that Act we are considered a financial institution and fall under the third section of the Bermuda Monetary Authority.'' Mr. Sutherland said that the reviewers were accustomed to a more clearly documented set of circumstances and expressed a preference in seeing an increased intensity of the BMA's supervision of the BSX.

He explained that in Britain the supervising authority had "very specific legislation'' to deal with the London Stock Exchange.

Asked if the suggestion would be adopted, Mr. Sutherland said that as the relevant act was due to be amended that Government might look to make such changes.

"We intend to put consultative papers to the industry at large in respect of the Investment Business Act very soon,'' he said, "and within that we might canvass to see if there is a need for us to tie in more directly with the BSX.'' KPMG report Mr. Wojciechowski said the BSX had already fully adopted another recommendation from the reviewers, that they carry out periodic site inspections on their broker /dealers.

"There is nothing nefarious about it, in fact it's just good housekeeping,'' he said. "Certainly others do it and one would expect to see it in any jurisdiction.'' The BSX recently augmented their compliance section, and Mr.

Wojciechowski said that one of the roles of the new officers was to begin the inspections.