Bisys Offers To Settle SECCharges
NEW YORK - (04/28/06) -- The Bisys Group Inc. said it hassubmitted an offer to the Securities and Exchange Commission tosettle charges that its Bisys Fund Services unit violatedsecurities laws in third-party marketing arrangements with certainmutual funds. Bisys said it has set aside about $25 million to paya potential fine and restitution, according to documents filed withthe SEC. The SEC claims that the company's agreement with itsmutual fund customers to use a portion of the administration feespaid to Bisys Fund Services by the funds to pay for, among otherthings, marketing and distribution expenses and pay certainadvisors, violated securities laws. Under the proposed settlement,yet to be accepted by the SEC, Bisys would neither admit or denyguilt but would consent to a cease and desist order from aiding orabetting the alleged violations of the securities laws.