Invesco's arrival in Bermuda this week might add a few thousands of dollars to the economy, but it will do little else so long as the giant investment company remains a "virtual" entity simply domiciled and exisiting as a document file in a lawyer's office.

That is the view of politician E.T. "Bob" Richards who was employed by Invesco in the 1990s when it had an actual office and eight employees on the Island.

Senator Mr. Richards was general manager for the company's global management set-up in Bermuda. Invesco set up in 1995 and then closed its offices in Bermuda in 1999.

Sen. Richards, responding to news this week that the company, which has more than $500 billion in assets under its management has redomiciled to Bermuda from London, said: "People need to be reminded that they have been in Bermuda before.

"The company employed eight people, six of whom were Bermudians and it was headed up by a Bermudian - myself.

"The difference now is that they (Invesco) have only a 'virtual' office. Its contribution to the Bermuda economy is minimal to say the least.

"They will pay fees and taxes that are required but they have nothing to do with its size.

"It will amount to a few thousands of dollars annually. There is no real multiple effect that there was when they were part of the community."

Sen. Richards, of the opposition United Bermuda Party, said the Invesco office in Bermuda during the 1990s ran scholarships for Bermudians.

He added that when a company exists in Bermuda as merely "a file in a lawyer's office" it does not provide the benefits that come from an actual physical presence where a company employs staff, and where its workers rent houses, shop locally and pay payroll taxes.

"The overwhelming majority of companies in Bermuda are virtual companies. The big ones that make the impact are the ones that have real operations here," said Sen. Richards.

Premier Ewart Brown met with two executives from Invesco on Wednesday.

Invesco's chief administrative officer Colin Meadows said the company "would not rule out adding employees here" but had no immediate plans to set up an office.