remain subject to the 60/40 share holding limitation on local companies.

The ruling has emerged as a key stumbling block that had stalled the acquisition of the trust company's parent, The Hemisphere Group Ltd., by exempted company, Mutual Risk Management Ltd. (MRM).

But MRM said last night they still received the necessary regulatory approvals from the Bermuda Government and have completed the acquisition of the Hemisphere Group Ltd.

Hemisphere's principle business is providing administrative, accounting and management services to offshore mutual funds and investment holding companies and the management of offshore trusts.

Mutual Risk paid some $11.6 million in its common shares in connection with the acquisition.

The completion comes after the Finance Minister was required to approve the deal because it involved the acquisition of a local company by an exempted company.

A statement from The Hemisphere Group Ltd.'s vice president, accounting, Thomas Healey, confirmed the regulatory approval from the Minister of Finance, and said a transmittal letter detailing the mechanics for exchanging Hemisphere shares for MRM shares had been sent to all Hemisphere shareholders.

The statement continued: "However, following discussions with the Minister, The Hemisphere Trust Company Ltd. will continue as a local trust company, subject to the normal 60/40 limitations on share holding and the application of the appropriate provisions of The Trust Companies Act and Exchange Control Act by the Bermuda Monetary Authority.

"The Minister has, however, agreed that subject to the foregoing, up to 40 percent of the shares of The Hemisphere Trust Company Limited may be acquired by MRM.'' Mutual Risk provides risk management services to clients in the US, Canada and Europe who seek alternatives to traditional commercial insurance for certain of their risk exposures, especially workers compensation.