The business community can expect further updates of regulations and more new rules, Bermuda Monetary Authority (BMA) chairwoman Cheryl Lister revealed yesterday.

Ms Lister set about explaining much of the new financial legislation currently before Parliament when she addressed members of the Bermuda International Business Association (BIBA) at a lunch following their annual general meeting.

But she also advised BIBA members that the BMA is looking at clarifying the law in instances where regulations exist, and regulating some areas which currently enjoy complete freedom.

"Going forward we see a need for attention to other parts of the present framework, which are showing their age, such as the Trust Companies Act as an example,'' she said.

"We also see other areas of business which are currently unregulated but which ought to be brought within a proper regulatory framework, the area of custody is a prime example. These are matters to which we are encouraging Government to devote early attention and I anticipate that it will be possible to consider such matters as part of a wider review of some of the present restrictions and rigidities that are affecting various parts of the financial services field.'' Mrs. Lister noted that the two means by which the BMA's role will greatly expand; the Banks and Deposit Companies Act and the Investment Business Act, will be introduced in January.

"A key aspect of this new regulatory framework is that licensing powers and the exercise of powers to intervene and deal with any problems, lie with the authority rather than with the minister as has been the case since 1969,'' she said.

Mrs. Lister said that while the change "may seem relatively minor'' it is essential to ensuring that "regulation lies with professional supervisors, with a clear separation of the prudential from the political aspects''.

Of the Investment Business Act, she noted: "It subjects to regulation a whole range of businesses that have not previously been supervised.'' More regulations to come, says Lister While noting that some businesses may regard the Bank and Deposit Companies Act as "an inherently regrettable development,'' Mrs. Lister was insistent that it is necessary and claimed that it is only "a formalisation of many of the already existing rules and requirements''.

"But it is a step that Bermuda must make to protect its reputation as a quality international financial centre,'' she said.

She noted that through the Statement of Principles, the Act now "set out in a very clear and transparent way the standards and rules which will apply. We have received considerable support in this effort from the financial institutions who mostly will be impacted by the changes, as they realise that it is in their best interests to show that they are regulated in line with international standards.'' The authority: Bermuda Monetary Authority Chairman, Cheryl Lister addresses members of BIBA at their AGM luncheon yesterday.