the Investment Business Act 1998.

Finance Minister Dr. Grant Gibbons said the move would help secure Bermuda as a sound financial centre, protect investors and would help the Island meet international standards.

Dr. Gibbons said the bill contained measures that would "depoliticise the licencing process'' and would establish an advisory body "with teeth''.

And the Bermuda Monetary Authority will enjoy greater involvement in the sector and will set up "enforceable codes of conduct'' for investment firms.

Dr. Gibbons told the House that the measures would only apply to local firms.

Shadow Finance Minister Eugene Cox said the new legislation was a "favourable innovation'' and expressed his pleasure over the fact that the Bermuda Monetary Authority will be given further supervision over the sector.

"It is legislation we would want to support,'' he added.

UBP backbencher Rick Spurling urged caution if thought was being given to applying the measures to foreign companies.

"It only applies to local firms for now, it could be extended,'' he said.

"But only after much discussion. We don't want to upset foreign businesses.'' Shadow Community and Cultural Affairs Minister Paula Cox said the new legislation should be of great concern to locals since it had a direct impact on them. "The public may have extra cash and invest it,'' she pointed out.

"It is becoming very common. When someone invests their $5 or $10 they will know that there have a code of conduct and remedies to protect them.'' The Premier Pamela Gordon said Bermuda had always taken the lead in financial matters and had proven itself to be "a cut above the rest''.

Shadow Health and Family Services Minister Renee Webb voiced her support of the bill noting that "those of us in the business welcome it''.