Bisys Group Inc. said it is looking into certain arrangements in its mutual fund business and has hired lawyers to represent it in a Securities and Exchange Commission investigation.
The New York financial outsourcer also said Tuesday that an internal investigation could cause it to miss the May 10 deadline for the earnings report for its fiscal third quarter, which ended March 31.
Bisys said that it believes the SEC probe involves fees paid to it by U.S. mutual funds, which were used to pay fund advisers and support marketing and distribution expenses.
Bisys said it has informed the SEC of several such arrangements, all of which it entered before December 2003, and that it has terminated them or is in the process of doing so. It also said it is cooperating with the investigation, and said it has retained the Washington law firm Wilmer Cutler Pickering Hale & Dorr LLP.
Russell P. Fradin, who joined Bisys as its president and chief executive in February 2004, said in a press release, "We take matters of this type very seriously. We will continue to aggressively address the issues raised by the investigations."
