committee of the House of Assembly.

And the Bank of Bermuda has failed in its bid to have its bill to exempt the bank from the Island's strict 60/40 rules governing Bermudian/overseas ownership approved.

The Joint Select Committee on Private Bills is also understood to have refused to recommend a bill from BELCO asking for exemption from a rule limiting a company from holding equity in a local company unless it is at least 80 percent owned by Bermudians.

Last night Andre Heyliger, the main man behind the bid to open the First International Citizens' Bank of Bermuda, said: "We are certainly disappointed.

"And we are disappointed that our work over the last three years in providing information to the committee and its advisers, personal visits and presentations, has not borne fruit here.

"We certainly would have been happy with an approval.'' He added: "We remain convinced that Bermuda will be better served by our entry into the market place, intitially as a small, efficiently-run full service financial entity, providing choice, participation and opportunity for all Bermudians.'' Mr. Heyliger declined to comment on what further moves his Top Resources Ltd.

could make to form the bank.

But it is understood a Progressive Labour Party MP could be waiting in the wings to take the Private Members' Bill to the House of Assembly for debate, despite the decision by the all-party Committee.

Bank of Bermuda president and chief executive Henry Smith, in a statement, echoed Mr. Heyliger's disappointment after the Island's biggest bank failed to win over the committee.

But he insisted: "We remain convinced that this bill is in the best interests of the both the bank and Bermuda.'' The Bank of Bermuda wanted the waiver to allow a secondary listing of its shares on the overseas Nasdaq Stock Exchange. It is currently only listed on the Bermuda Stock Exchange.

The bank argued that another listing would give the bank access to capital for international development and boost the stock price.

Mr. Smith said: "We are committed to the earliest possible achievement of a secondary listing of our shares and the associated benefits which the listing will provide for our shareholders and Bermuda.

"We will ask our board to consider alternative means of achieving this goal.

It remains essential that the issues of shareholder value and access to capital be addressed as soon and as effectively as possible.'' Mr. Smith did not say how the bank could move its plans forward in his statement -- but only one MP is needed to bring a bill before the House of Assembly.

The Royal Gazette also understands the bank could list up to 20 percent more of its shares abroad without falling foul of the existing law.

BELCO wanted an exemption from the 80/20 rule so its majority ownership of local telephone company Quantum Communications Ltd. is not jeopardised.