comply with new Bermuda Monetary Authority (BMA) regulations put in place last February.

With about five weeks to the February 9 cut off date, just over a half of the 950 collective investment schemes have applied to the Authority for classification under new rules.

BMA general manager Malcolm Williams said, "The Bermuda Monetary Authority is not looking to take any draconian action against schemes at this time.

"However, the BMA is concerned about the general lack of urgency with regard to existing schemes complying with the regulations.'' Under the provisions signed into law last February 9, all collective investment schemes -- including mutual funds and unit trusts -- incorporated in Bermuda were required to apply for classification under the regulations as a Bermuda Standard Scheme, a Bermuda Institutional Scheme, or a Bermuda Recognised Scheme.

The regulations were effective immediately for schemes newly registering, but existing schemes were given a year to comply.

The BMA is now concerned about a backlog of applications and the possibility of dozens of schemes operating in contravention of the regulations.

Since the regulation's introduction, the BMA has conducted two mailings to collective investment scheme service providers, including administrators, custodians, registrar and transfer agents, and lawyers.

They were informed of the requirement to apply under the regulations and told about the specific manner in which the applications were to be submitted. The BMA requires the submission of a one page application form, which is available directly from the BMA, or on its web-site or from service providers, and a copy of the scheme's most recently published prospectus.

Mr. Williams pointed out that while there was no penalty for non-compliance, it is in the interest of credibility and respectability that they do comply.

He noted, "We are saying that if they wish to market themselves, it may be worth their while to seek a recognition that will be acknowledged by institutions and the general public.

"It is not an administrative burden because they can simply go on the web site and fill out the form electronically.'' Deadline for mutual funds The regulations were effective immediately for schemes newly registering, but existing schemes were given a year to comply.

The BMA is now concerned about a backlog of applications and the possibility of dozens of schemes operating in contravention of the regulations.

Since the regulation's introduction, the BMA has conducted two mailings to collective investment scheme service providers, including administrators, custodians, registrar and transfer agents, and lawyers.

They were informed of the requirement to apply under the regulations and told about the specific manner in which the applications were to be submitted. The BMA requires the submission of a one page application form, which is available directly from the BMA, or on its web-site or from service providers, and a copy of the scheme's most recently published prospectus.

Mr. Williams pointed out that while there was no penalty for non-compliance, it is in the interest of credibility and respectability that they do comply.

He noted, "We are saying that if they wish to market themselves, it may be worth their while to seek a recognition that will be acknowledged by institutions and the general public.

"It is not an administrative burden because they can simply go on the web site and fill out the form electronically.'' GOVERNMENT GVT