Monetary Authority when a law approved in the House of Assembly on Friday takes effect.

Finance Minister the Hon. David Saul explained that the Bermuda Monetary Authority Amendment Bill 1993 protects auditors from any breach of confidence charges if they disclose information to the BMA.

Auditors were free to report wrongdoings to the BMA or provide information if called upon.

And no auditor of a financial institution or any company incorporated in Bermuda would be in breach of duty by "communicating in good faith to the BMA'', he said.

Shadow Finance Minister Mr. Eugene Cox started out by saying the legislation was "long overdue''. "Companies could one day be healthy and the next day in serious financial trouble,'' he noted.

But auditors should not be allowed to pass on information concerning their clients' affairs in a loose fashion. Steps should be taken to ensure any information given to the BMA was in writing. Dr. Saul pointed out that was, in fact, a requirement.

National Liberal Party leader Mr. Gilbert Darrell did not think it was right to allow auditors to breach their duty of confidence to provide the BMA with information.

There could be abuses, he said, adding he did not think the legislation would stand up in a US court.

The Hon. Harry Soares (UBP), a chartered accountant, said the international marketplace of today demanded the legislation.

The Institute of Chartered Accountants and the banks had agreed to the legislation, which was "for the good of the Country'', he said.

Mr. Stuart Hayward (Ind) called for the legislation to be extended to include doctors and social workers.

The reporting by social workers or doctors of child abuse cases should be required.

Mr. Eugene Blakeney (PLP) welcomed the legislation, but asked what "real protection'' the Bill afforded auditors. Could they still be taken to court, he asked.

In his response, Dr. Saul said auditors would be "opening themselves up to lawsuits if they did not pass on information in good faith''.