Hundreds of unregulated financial services companies are operating in Bermuda, the AGM of the International Companies Division (ICD) of the Chamber of Commerce was told at the Princess Hotel yesterday by outgoing chairman Anthony Goodfellow.

And Mr. Goodfellow forecast that Bermuda's 1996 balance of payments surplus was likely to exceed $100 million. He said that was "perhaps an indication that the substantial relaxation of exchange control is working and that what remains can now be removed.'' He also said, "Papers have been written and discussions held with the Ministry of Finance Committee appointed to consider the speeding up of the company incorporation process and the UBP Task Force considering the expansion of the financial services.

"While the latter is highly politically charged and may yet take time, the former has been under consideration for many months and we hope that decisions will be forthcoming soon.

"Let it be said that there are reportedly some 200 to 300 unregulated, uncontrolled, non-tax paying providers of financial services operating here out of suitcases and surely regulatory legislation must be treated as a priority.'' He expressed confidence that the business lobby had successfully negotiated "a degree of flexibility necessary to the exigencies of international business'' on the future of the National Pension Scheme.

He had praise for the government on the proposed Proceeds of Crime Bill, with Mr. Goodfellow confident that the new draft would take into account concerns raised by the financial services sector, while maintaining necessary powers to combat money laundering.

He said progress had been made with the Police Service, in terms of a more visible force and the upgrading of equipment.

But he said that ICD members were involved in discussions about the supply of even more sophisticated equipment, including an anti-crime surveillance system and equipment aimed at improving traffic control.

He said the ICD had continued to made representations relating to taxation and while there had been talk of a review of the entire tax structure, the Finance Minister was aware that the ICD was prepared to assist in the deliberations.

He talked of significant progress that had been made on the question of longer term leaseholds for commercial real estate and he understood that the relaxation of the current policy on the purchase of condominiums by non-Bermudians was under active consideration.

Mr. Goodfellow is succeeded as chairman of the Chamber's ICD by David Ezekiel.

Anthony Goodfellow BUSINESS BUC