access to share registers of Bermuda-based fund share registers, a lawyer said yesterday.

Mr. John Collis, a member of the Bermuda International Business Association's Companies Act amendments committee, said he was aware of "some mutual funds that were launched elsewhere'' because fund registers were open to the public.

Speaking at a BIBA forum at the Royal Bermuda Yacht Club, Mr. Collis said the lists had been public since 1984, but it was only a year ago that competitors became aware that they could get a Bermuda mutual fund company's investor list for a small fee.

And once the knowledge was out there the raiding started.

He said he was also aware of "dozens'' of instances where mutual fund investor lists were being raided because of a legislative loophole.

Each mutual fund register -- the list of every investor in a fund -- remained public information until the Companies Amendment Act 1995 closed registers of members of mutual funds in July.

"The mutual fund company has been a very successful product and this loophole (had) allowed companies to get hold of client lists which led to numerous raids,'' said Mr. Collis, a partner at Conyers, Dill & Pearman.

"Mutual fund provisions were introduced in 1984, a modification of company law to provide a suitable company vehicle for mutual funds.

"One of the consequences was that its share register was public,'' said Mr.

Collis.

"It would not normally, in an onshore jurisdiction like the US or the UK, or in other offshore jurisdictions, be possible to obtain these lists and no where else in the world is a client list public.

"The investors are clients, commercially speaking,'' he said.

Prior to the move to the closing of the registers, a list of the investors in a Bermuda-registered mutual fund could be obtained for between $5 and $20.

Supporters of the new legislation say not only does the move protect the privacy of investors but it also halts raiding and pesky direct mailing.

But critics say public registers are better for competition as a company can suggest alternatives for investors.

Mr. Collis also explained changes relating to indemnification of directors.

The changes make the level of directors' responsibility clear as "there were concerns that (directors) may be exposed to unreasonable levels of liability''.

Lawyer Ms Angela Berry of Appleby, Spurling & Kempe and accountant Mr. Thomas Conyers also spoke at the forum.

As well as the Companies Amendment Act 1995, the forum covered the Exempted Partnerships Amendment Act 1995, the Limited Partnerships Amendment Act 1995 and the Overseas Partnerships Act 1995.

"One of the objectives of BIBA is to provide its membership with regular updates on legislative and regulatory changes that affect the international business industry,'' BIBA said earlier.

The next forum, on pensions, is slated Thursday, September 14 at 9 a.m. at the RBYC.