The Bermuda Monetary Authority is anticipating widespread acceptance of its code of conduct for collective investment schemes -- which includes mutual funds and unit trusts.

Mr. Peter T. Sousa, who oversees the investment services division of the BMA, said yesterday that 19 local entities so far have endorsed the voluntary code, which applies to Bermuda-registered CISs.

CISs include; mutual funds, unit trusts, and limited partnerships while the code serves as a set of guidelines for the schemes and for entities providing associated services.

"We certainly believe it has been well received domestically. Some of the 19 who have signed the code are major players (from the Island's investment sector),'' said Mr. Sousa.

The code has met with approval from; banks, law firms, consulting firms, management services, mutual fund management companies as well as; an insurance management company, an investment management company, and an accounting firm.

The formation and introduction of a code of conduct stems from the growing number and value of schemes in Bermuda.

Though the net asset value (NAV) of Bermuda-registered schemes recently declined, it is expcted to reach $14 billion by the end of this year.

Preliminary figures from the BMA estimate December figures will come in around $13 billion while the number of schemes is anticipated to be 593 for the end of 1993.

Banks, who primarily but not exclusively act as CIS custodians, release figures to the BMA which in turn publishes a monthly report on CISs.

The Island's lending institutions are custodians to a vast majority of Bermuda's schemes, but a scheme can apply for exemption from bank custodianship if they can indicate they already have a recognised or established custodian, according to Mr. Sousa.

The code was introduced by the Bermuda Monetary Authority last December in consultation with the Bermuda International Business Association's (BIBA) mutual funds sub-committee.

"We are hoping that representatives from the schemes endeavour to sign up as well,'' he added.

"The code recently received international exposure at the recent CCH/FBA Conference on mutual funds in California where it was presented and discussed.

It is part of a larger continuing marketing effort to develop the Island's investment services sector,'' he added.

The code helps Bermuda compete with other jurisdictions by speeding up application processing as firms use it as a guideline when submitting applications, according to Mr. Sousa.

The code includes; Rights and restrictions attached to the shares; Terms for valuation of assets and liabilities; Manner of calculation of the NAV and the issue and redemption price of shares; Terms on which shares are issued; Terms on which shares may be converted or transferred; Terms on which shares may be redeemed and circumstances redemptions may be suspended; Investment restrictions of borrowing limitation if desired; and Appointment of an auditor.

The code covers sections with conduct applicable to the scheme, the manager, the custodian, the registrar, investment advisor, financial reports, audits, the prospectus, as well as an introduction and interpretation section.