Bisys (NYSE:BSG)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Bisys Charts. Click Here for more Bisys Charts.](/p.php?pid=staticchart&s=NY%5EBSG&p=8&t=15)
BISYS, a leading provider of outsourcing solutions for the financial
services sector, announced today that it has reached an agreement with
the Securities and Exchange Commission (SEC) to settle an investigation
into past marketing arrangements with mutual fund advisers. The
investigation, which began in 2004, examined arrangements between BISYS
Fund Services (BFS) and mutual fund advisers in which portions of BFS’
administration fees were used to pay for marketing and distribution of
the mutual funds. BISYS was charged with aiding and abetting, and not
with commission of a direct fraud. In the settlement, the SEC
acknowledges cooperation from BFS, and BFS neither admits nor denies
findings of the order.
“We are glad to have reached closure on this
issue so that we can move forward to build and strengthen our business,”
said Fred Naddaff, president of BISYS Fund Services. “We
have implemented industry-leading best practices to ensure compliance
with the highest legal and ethical standards.”
Between June 1999 and July 2004, BFS maintained marketing arrangements
with 27 mutual fund advisers in which it set aside a portion of its
administration fees to use for marketing on behalf of mutual funds. Upon
learning of the practices under investigation, BFS’
senior management team and the BISYS board initiated the following
actions:
Employed outside legal counsel to conduct an internal review of all
marketing arrangements
Terminated all existing marketing arrangements
Disciplined and/or terminated employees involved with the arrangements
in question
Implemented new compliance policies and procedures that represent
industry leading best practices
Since the investigation was initiated in early December 2004, BISYS has
cooperated with the SEC, providing information and documents and making
employees available for interviews and/or testimony. In accordance with
the settlement, BISYS has agreed to take the following actions:
Retain and fully cooperate with an independent compliance consultant,
who will conduct a comprehensive review of BFS’
policies and procedures and report to the BISYS board and SEC.
Retain and fully cooperate with an independent distribution consultant
to oversee the distribution of approximately $21.4 million that BISYS
will pay for the benefit of affected mutual funds. These amounts have
been previously disclosed and reserved for by BISYS.
Provide full cooperation with a follow-up review conducted by the
independent compliance consultant to ensure implementation of any
recommendations contained in the consultant’s
report.
“BISYS Fund Services has emerged a stronger
organization today than it was two years ago and has continued to
attract new business and maintain client loyalty,”
said Naddaff. “We’ve
developed and implemented a system of associate training to instill a
culture of compliance, created new procedures that represent the industry’s
leading best practices, and adopted a more rigorous approach to risk
management. We believe there is a positive net effect that will serve to
benefit our clients and their shareholders.”
About BISYS Fund Services
BISYS Fund Services is an industry-leading provider of outsourcing
solutions for mutual funds, separately managed accounts (SMAs), and
other investment programs, worldwide. BISYS administers more than $400
billion in assets for approximately 2,000 portfolios. BISYS Fund
Services is a division of The BISYS Group, Inc.’s
Investment Services group.
About BISYS
The BISYS Group, Inc. (NYSE: BSG) provides outsourcing solutions that
enable investment firms and insurance companies to more efficiently
serve their customers, grow their businesses, and respond to evolving
regulatory requirements. Its Investment Services group provides
administration and distribution services for mutual funds, hedge funds,
private equity funds, retirement plans and other investment products.
Through its Insurance Services group, BISYS is the nation’s
largest independent wholesale distributor of life insurance and a
leading independent wholesale distributor of commercial
property/casualty insurance, long-term care, disability, and annuity
products. Additional information is available at www.bisys.com.
Except for the historical information contained herein, the matters
discussed in the press release are forward-looking statements within the
meaning of the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's current reasonable expectations and are subject to
certain assumptions, risks, uncertainties and changes in circumstances
due to future events as well as changes in economic, competitive,
regulatory and/or technological factors affecting BISYS’
business, including, without limitation, the ongoing government
investigations and litigations involving the company. More detailed
information about risk factors that could cause actual results to differ
materially are noted in BISYS’ periodic
filings with the Securities and Exchange Commission. These documents can
be accessed on BISYS’ website at www.bisys.com
under the “Investor Relations”
tab. Forward-looking statements are only predictions, not guarantees of
performance, and speak only as of the date they are made. BISYS
disclaims any obligation to update or amend these statements in light of
new information, future events or otherwise.
BISYS, a leading provider of outsourcing solutions for the
financial services sector, announced today that it has reached an
agreement with the Securities and Exchange Commission (SEC) to settle
an investigation into past marketing arrangements with mutual fund
advisers. The investigation, which began in 2004, examined
arrangements between BISYS Fund Services (BFS) and mutual fund
advisers in which portions of BFS' administration fees were used to
pay for marketing and distribution of the mutual funds. BISYS was
charged with aiding and abetting, and not with commission of a direct
fraud. In the settlement, the SEC acknowledges cooperation from BFS,
and BFS neither admits nor denies findings of the order.
"We are glad to have reached closure on this issue so that we can
move forward to build and strengthen our business," said Fred Naddaff,
president of BISYS Fund Services. "We have implemented
industry-leading best practices to ensure compliance with the highest
legal and ethical standards."
Between June 1999 and July 2004, BFS maintained marketing
arrangements with 27 mutual fund advisers in which it set aside a
portion of its administration fees to use for marketing on behalf of
mutual funds. Upon learning of the practices under investigation, BFS'
senior management team and the BISYS board initiated the following
actions:
-- Employed outside legal counsel to conduct an internal review
of all marketing arrangements
-- Terminated all existing marketing arrangements
-- Disciplined and/or terminated employees involved with the
arrangements in question
-- Implemented new compliance policies and procedures that
represent industry leading best practices
Since the investigation was initiated in early December 2004,
BISYS has cooperated with the SEC, providing information and documents
and making employees available for interviews and/or testimony. In
accordance with the settlement, BISYS has agreed to take the following
actions:
-- Retain and fully cooperate with an independent compliance
consultant, who will conduct a comprehensive review of BFS'
policies and procedures and report to the BISYS board and SEC.
-- Retain and fully cooperate with an independent distribution
consultant to oversee the distribution of approximately $21.4
million that BISYS will pay for the benefit of affected mutual
funds. These amounts have been previously disclosed and
reserved for by BISYS.
-- Provide full cooperation with a follow-up review conducted by
the independent compliance consultant to ensure implementation
of any recommendations contained in the consultant's report.
"BISYS Fund Services has emerged a stronger organization today
than it was two years ago and has continued to attract new business
and maintain client loyalty," said Naddaff. "We've developed and
implemented a system of associate training to instill a culture of
compliance, created new procedures that represent the industry's
leading best practices, and adopted a more rigorous approach to risk
management. We believe there is a positive net effect that will serve
to benefit our clients and their shareholders."
About BISYS Fund Services
BISYS Fund Services is an industry-leading provider of outsourcing
solutions for mutual funds, separately managed accounts (SMAs), and
other investment programs, worldwide. BISYS administers more than $400
billion in assets for approximately 2,000 portfolios. BISYS Fund
Services is a division of The BISYS Group, Inc.'s Investment Services
group.
About BISYS
The BISYS Group, Inc. (NYSE: BSG) provides outsourcing solutions
that enable investment firms and insurance companies to more
efficiently serve their customers, grow their businesses, and respond
to evolving regulatory requirements. Its Investment Services group
provides administration and distribution services for mutual funds,
hedge funds, private equity funds, retirement plans and other
investment products. Through its Insurance Services group, BISYS is
the nation's largest independent wholesale distributor of life
insurance and a leading independent wholesale distributor of
commercial property/casualty insurance, long-term care, disability,
and annuity products. Additional information is available at
www.bisys.com.
Except for the historical information contained herein, the
matters discussed in the press release are forward-looking statements
within the meaning of the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management's current reasonable expectations
and are subject to certain assumptions, risks, uncertainties and
changes in circumstances due to future events as well as changes in
economic, competitive, regulatory and/or technological factors
affecting BISYS' business, including, without limitation, the ongoing
government investigations and litigations involving the company. More
detailed information about risk factors that could cause actual
results to differ materially are noted in BISYS' periodic filings with
the Securities and Exchange Commission. These documents can be
accessed on BISYS' website at www.bisys.com under the "Investor
Relations" tab. Forward-looking statements are only predictions, not
guarantees of performance, and speak only as of the date they are
made. BISYS disclaims any obligation to update or amend these
statements in light of new information, future events or otherwise.