Monetary Authority, passed in the Senate on Wednesday.

The 1993 Bermuda Monetary Authority Amendment Act will allow auditors, when they feel it is "appropriate'', to give information about financial institutions to the BMA without fear of liability.

Government Sen. Wendell Hollis in presenting the bill, explained that the financial institutions referred to banks, collective investment schemes, credit unions, and deposit companies.

Independent Sen. Joe Johnson said he welcomed the bill as added protection for the accounting fraternity.

But Opposition Senate Leader Sen. Alex Scott the "short piece of Parliamentary business has the potential for far-reaching repercussions''.

And he asked if Government had canvassed the institutions that will be affected to get feedback.

He also asked if the bill had the potential to impact upon international companies and whether they had been consulted.

"While it (the bill) may be very benign,'' Sen. Scott said, "one can see that an auditor may be moved in a very innocent matter to pass on information that some of his clients may feel is either premature or inappropriate.'' Opposition Sen. Ira Philip said the bill could put small organisations, like credit unions, "at a tremendous disadvantage''.

"I feel organisations, large or small, should have protection,'' he said.

"We have our concerns about victimisation.'' However, Sen. Hollis said the bill provides protection to the auditor only when he or she is giving information to the BMA -- which is required.

Noting that the Bank of England has similar power as the BMA in regulating financial institutions, he said: "Everyone should feel comfortable that this is not designed to do anything but allow the Authority to do the job it has the power to do''.

Accountants welcomed it, Sen. Hollis added.

But responding to Sen. Scott, he said the only international companies that will be affected are those that come under the definition of collective investment schemes.

This would include mutual funds, he said, which are already regulated.