HAMILTON, Bermuda, (Reuters):
AFTER A half century as an offshore banking haven for companies from the United States and other nations, Bermuda yesterday followed the lead of other financial centers, banning insider trading and market manipulation.
The island nation's Senate passed the insider trading and market manipulation laws yesterday, following a similar move by the House of Assembly on Friday.
Those found guilty of insider trading face up to seven years in jail or fines of $175,000, while market manipulation carries a maximum fine of $100,000 or five years in prison.
THE EXCHANGE
The new laws apply to the 290 securities, including 180 offshore funds, listed on the local Bermuda Stock Exchange. The exchange has a total market capitalization of $125 billion.
The Senate had originally not been expected to consider the new laws until after the summer recess. The legislation next goes before Gov. Sir John Vereker for his signature, a process considered a formality.
"This is especially timely as Bermuda's financial services are increasingly sought out by the world's investors," said Bermuda International Business Association chief executive Deborah Middleton.
Rules governing the regulatory Bermuda Monetary Authority (BMA) were also revised to clarify when it can share confidential business information with outside investigators during a criminal investigation.
REGULATES
The BMA regulates 12,000 foreign companies which are registered in the mid-Atlantic island but trade overseas.
Bermuda, a 22-square-mile (56 km-sq) island of 65,000 people, lies 560 miles (900 km) east of North Carolina.
