trust companies.

Previously, Government policy ruled foreign-owned trust companies had to set up in Bermuda with their own offices and staff.

But in recent years the Ministry of Finance has reworked its policy on trust companies and according to Finance Minister the Hon. David Saul, the new amendment is part of a historical shift.

"We have now reached a point where the smaller trust companies want to apply for a licence,'' said Dr. Saul.

"And a number have requested that they be managed by a local or exempted company that is an existing trust holder.

"To put this in its historical context: when Parliament decided to pass the trust legislation, the intention, for the first nine months, was to let local companies have the opportunities to apply for a licence.

"Then one year later, in 1991, we decided to allow any of the best trust companies in the world apply for a licence.'' He said the Bermuda authorities have already received applications from foreign-owned trust companies.

The change in policy is, in part, a reaction to demand from prospective managed trust companies.

Although the new trust companies were "electing not to go to expense of an office and staff at the outset, when they are up and running, the managed trust company will detach from the parent,'' predicted Dr. Saul.

To date, there are four exempted trust companies: Lombard Odier, Coutts & Co., Schroders and Royal Trust and 21 local trust companies.

In the autumn of 1991, foreign-owned trust companies were allowed into Bermuda. Under Bermuda trust company legislation, 21 trust company licences were issued.

Local law firms and management companies welcomed the policy change. Ms Monica Jones, a partner at local law firm Appleby Spurling & Kempe, said: "The changes will be supported as long as they proved beneficial to Bermuda -- Bermudians are employed in the licensed trust companies and in the passage of time, the managed trust companies set up their own offices.''