Senators.

They welcomed the Investment Business Act 1998, which aims to enhance Bermuda's financial reputation and put in place regulations to look after individual investors.

Included in the Act is the establishment of an independent regulatory body and the licensing of investment businesses working in Bermuda.

Fees from liences would go to the Bermuda Monetary Authority, which would have responsibility for the legislation.

Senator Allan Marshall (UBP) said the Act would phase in appropriate regulations for international business, include penalties for offences and more flexibility.

Sen. Terry Lister (PLP) said they wanted to stop people getting ripped off by unscrupulous traders, but the bill would not help those who acted alone with overseas companies or via the Internet.

Sen. Marshall confirmed that the legislation would cover all businesses operating in Bermuda, even salesmen who came for a short visit would need a licence to operate.

The Government and organisations such as the Bermuda Monetary Authority would be exempt from the Act as they did not deal with the private investor on an individual basis.

Sen. Lister questioned the right of the Bermuda Monetary Authority to be able to approve the appointment of senior staff in investment companies.

"I think this clause is a bit much -- it is offensive,'' he said.

But Sen. Marshall said it would enhance Bermuda's reputation and said such a clause already existed in the Companies Act.