the Island's international insurance companies -- "File your statutory financial returns on time or watch out''.

In an uncompromising speech, Mr. Butterfield announced his department will soon take on three new technical officers to regulate Bermuda's offshore insurance industry.

And he warned: "To those of you who continue to ignore your responsibilities and have companies under management which put in late returns, I tell you -- `This cannot continue in this jurisdiction'.

"I must take appropriate steps if such matters are not sorted out in a satisfactory manner.'' His department is in the process of sending out letters to the industry's principals warning them of their responsibilities to comply with the Island's regulations.

Any breach of these regulations has a negative impact on the whole industry because it heightens the already suspicious attitude that many overseas regulators, particularly in the United States, hold towards offshore jurisdictions, said Mr. Butterfield.

"Compliance of insurance regulations in Bermuda ranges from good in most cases to fair in some cases and disappointing in other cases,'' he told a Bermuda Insurance Institute luncheon at the Princess Hotel.

"I'm continuously concerned about the company representatives who are on the borderline of carrying out their duties. There are limited instances where financial returns are not filed to my department on time.'' He added: "Whenever I have the opportunity overseas, I always maintain that Bermuda takes its insurance regulations seriously. But there's always the inherent risk of a regulator questioning this if there is even one problem.

"Bermuda's reputation must at all times be protected and we must be shown to have a strong and secure regulatory environment. That reputation in Bermuda rests on your shoulders.'' Mr. Butterfield said some state and federal regulators in the United States were finally beginning to be won around to the notion Bermuda was not an unregulated offshore backwater.

His department did not want anyone spoiling that conception by causing problems, he said.

"There's no doubt in my mind that everyone sitting in this room today is of the opinion that Bermuda is the world's leading offshore insurance jurisdiction and, in my view, this is a reasonably accurate insider's perception,'' he added.

"What is for me more important is the outsider's perception, in particular how the US state and federal legislators view Bermuda.

"Some view Bermuda as just another of those offshore insurance jurisdictions that have flexible and easy insurance regulation standards where captives are formed and much time is set aside for fun in the sun. I'm always quick to dispel such misconceptions.'' Since becoming Registrar of Companies a couple of years ago, Mr. Butterfield has made a point of attending every quarterly meeting of the powerful National Association of Insurance Commissioners in the US in an attempt to make them better understand Bermuda's business community.

Mr. Butterfield said there was evidence that people like NAIC president Mr.

Steven Foster were now beginning to realise that Bermuda is better-regulated than other offshore jurisdictions.

In conclusion, Mr. Butterfield quoted former Los Angeles Lakers basketball coach Mr. Pat Riley who, after guiding his team to four National Basketball Association titles in eight years, said that the only thing left was to strive to become the greatest basketball team ever.

"We do not merely want to be considered the best but we want to separate from the pack and be the only team to do what we do. That's the essence of Showtime,'' Mr. Butterfield quoted Mr. Riley as saying.

Mr. Butterfield added: "It's time to show North America, London, Europe and the US state and federal representatives that the Bermuda partnership between the public and private sectors does work, that it works well and that it works efficiently.'' Mr. Malcolm Butterfield.