- BISYS' Regulatory Expertise and Resources Enable Clients to
Establish a Culture of Compliance -
NEW YORK, Jan. 26 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
business process outsourcing solutions for the financial services sector,
today announced its enhanced package of independent and comprehensive legal,
regulatory, and compliance services that help its mutual fund and hedge fund
management clients develop and maintain efficient, effective compliance
infrastructures.
BISYS Regulatory Services delivers comprehensive programs and proven best
practices that support current and anticipated compliance requirements for
mutual funds, hedge funds, investment advisers, and broker-dealers. BISYS'
staff of experienced compliance professionals and consultants, which includes
former regulators, are fully informed about existing, proposed, and
anticipated regulatory requirements, and the best practice recommendations
provided by the regulatory and private sectors. These compliance experts are
available to perform complete regulatory risk analyses, to support the
development and implementation of comprehensive compliance and risk management
programs, and to audit the effectiveness of financial services firms'
regulatory-related initiatives. In order to develop and deliver practical,
contemporary compliance solutions, BISYS continually monitors legislative,
regulatory, and industry developments.
Recent events have demonstrated that regulators expect financial services
firms to assess and address their regulatory and operational risks, and to
demonstrate the effectiveness of their compliance-related programs and
oversight. These evolving regulatory requirements are significantly changing
the investment industry's approach to compliance, particularly when combined
with existing and proposed officer certification requirements and the recent
failures to detect certain infractions and address conflicts of interest.
BISYS offers these independent and objective services to help mutual fund and
investment management companies establish a culture of compliance within the
context of these recent developments.
According to Lisa Hurley, executive vice president and general counsel of
BISYS Regulatory Services, "Investment managers and broker-dealers engaged in
advising or selling investment products are grappling with the regulatory
issues and facing a new regulatory framework. Many firms do not have the
compliance infrastructure to efficiently and effectively respond to the
dynamic regulatory environment. BISYS Regulatory Services provides the
expertise, resources, and programs to augment its clients' regulatory
infrastructures and to guide firms in establishing an enterprise-wide culture
of compliance. We work diligently in partnership with our clients to develop
and maintain flexible, cost-effective compliance solutions for the long-term;
and to ensure that they avoid potential compliance pitfalls by providing a
broad range of solutions and regular guidance. We have made significant
investments in our legal, regulatory, and compliance resources based on the
industry's growing demands for assistance and for outsourced compliance
solutions. BISYS is consistently at the forefront of providing solutions that
impact providers of financial services. We offer programs that meet the
compliance standards and best practices embodied in the SEC's new risk-based
approach to examinations and the proposed compliance program grading. We
encourage each of our clients to address evolving regulations in a timely
fashion and to proactively implement best practice recommendations, and we can
provide the expertise and resources to help them with every aspect of this
complex and dynamic process."
Regulatory areas currently generating industry-wide concern include:
-- Trade Processing - Recent events have focused regulatory and industry
attention on trade processing and related practices, including late
order-taking arrangements, market timing policies and fair valuation
enforcement, and portfolio information sharing practices. Most
broker-dealers and fund organizations have reviewed and assessed
relevant practices, procedures, controls, and their contractual
arrangements that have historically received little attention. BISYS
is qualified to help these organizations assess their risks in these
areas and implement and strengthen procedures based on legal
requirements, contractual commitments, and best practices. BISYS also
helps its clients establish the oversight mechanisms necessary to
ensure ongoing compliance by the organizations they conduct business
with, including service providers and outside dealer networks.
-- Sarbanes-Oxley Requirements for Investment Companies - BISYS' model
disclosure controls and procedures (DCPs) ensure that initiatives
related to Sarbanes-Oxley compliance are adequate and efficient.
BISYS' comprehensive audits assess the adequacy and effectiveness of
DCPs against its model and each firm's unique organizational
structure. BISYS' periodic reviews support fund accountants,
administrators, and certifying officers with the capabilities to
verify the effectiveness of their controls over financial reporting.
BISYS consultants provide related onsite compliance training and
ensure that the requirements work efficiently with the firms' legal
and compliance organization.
-- NASD Rule 3010 Proposed Amendments - BISYS helps its clients ensure
that their supervisory policies, controls, and procedures related to
compliance with NASD Rule 3010 are adequately structured and enforced.
The certification requirements of rule 3010 have been proposed to
enhance investor protection by increasing senior management commitment
to and accountability for compliance and the required internal
controls. The proposed rule also is intended to generate increased
interaction and information flows between operations and compliance
officers.
-- Anti-Money Laundering & USA PATRIOT Act - BISYS provides the expert
guidance and staff resources necessary to develop compliance programs
for the USA PATRIOT Act, and to perform regular program oversight
through periodic, independent audits. BISYS' services, in conjunction
with its clients' comprehensive, internal administrative structures,
support Customer Identification Program (CIP) requirements, the
monitoring and reporting of suspicious activity, reviews against U.S.
government and other primary lists of known terrorists and money
launderers, and recordkeeping requirements. For investment advisors
and hedge fund managers planning to implement anti-money laundering
programs in advance of expected rules, BISYS has designed best
practice policies that meet the standards of the USA PATRIOT Act as
well as those mandated within the other jurisdictions in which
firms operate. BISYS' hedge fund anti-money laundering support
includes the development and/or augmentation of identity verification
procedures and enhanced due diligence to more effectively monitor
suspicious activities and screen for high-risk investors listed on
government watch lists. BISYS also has designed an annual review
program and provides the services of an AML compliance officer.
-- Breakpoints - BISYS provides procedural consulting and guidance for
the appropriate application of breakpoint discounts to investors based
on linked accounts, including the preparation or prospectus disclosure
and the communication and coordination with broker-dealers to ensure
that investor privileges are honored. BISYS also can assist with
enhanced representative training and education, and the implementation
of applicable aspects of the Joint Task Force list of recommendations.
BISYS' professionals also are available to analyze dealer
arrangements, conduct due diligence of dealer networks, and conduct
reviews of mutual fund sales practices.
-- Conflicts of Interest - Many of the recent regulatory issues resulted
from the failure to control and detect conflicts of interest within an
organization, and the fundamental structure of many financial services
firms makes them especially vulnerable to these events. BISYS'
consultants are available to provide comprehensive compliance
oversight solutions, including assessments of the current investment
management compliance and control arrangements, to implement
supervisory and internal control systems, and to address the best
practices and regulations established by the SEC.
Bill Tomko, group president of BISYS Investment Services, said,
"Considering the liabilities and repercussions associated with compliance
failures and the significant efforts required to implement and maintain
adequate compliance solutions, it is important to seek a partner with the
comprehensive knowledge necessary to assist and support ongoing regulatory
requirements. BISYS has developed a unique approach to help our clients deal
with the ever-changing compliance and regulatory landscape, and to assist them
in meeting their related obligations. We believe our package of regulatory
services is timely, a significant point of competitive differentiation, and
extremely beneficial in today's regulatory environment."
About BISYS
The BISYS Group, Inc. (NYSE: BSG), headquartered in New York City,
provides business process outsourcing solutions that enable investment firms,
insurance companies, and banks to capitalize on convergence by entering new
segments of the financial services industry. BISYS currently supports more
than 22,000 domestic and international financial institutions and corporate
clients through three business units. Its Investment Services group provides
administration and distribution services for approximately 370 clients,
representing approximately 2,200 mutual funds, hedge funds, private equity
funds, and other alternative investment products with approximately $750
billion in assets under administration. BISYS' largest group also provides
retirement services to more than 18,000 companies in partnership with 40 of
the nation's leading banks and investment management companies, and offers
analytical research and competitive information through its Financial Research
Corporation (FRC) subsidiary. Through its Insurance and Education Services
group, BISYS is the nation's largest independent distributor of life insurance
and the premier provider of the support services required to sell traditional
and variable life, long-term care, disability, and annuity products. BISYS is
also the nation's second largest independent wholesale distributor of
commercial property/casualty insurance. This group complements its insurance
distribution services with a comprehensive compliance management solution that
supports insurance and investment firms and professionals with more than 215
certification and continuing education training courses, and a sophisticated
suite of products and services that automates the entire licensing process.
BISYS' Information Services group supports approximately 1,450 banks,
insurance companies, and corporations with industry-leading information
processing and imaging solutions, turnkey asset retention solutions, and
specialized corporate banking solutions. Additional information is available
at http://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 subject to risks and
uncertainties that may cause actual results to differ materially, including
but not limited to economic, competitive, governmental and technological
factors affecting the Company's operations, markets, services and related
products, prices and other factors discussed in the Company's periodic filings
with the Securities and Exchange Commission.
SOURCE The BISYS Group, Inc.
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http://www.bisys.com
Company News On-Call:
http://www.prnewswire.com/comp/851938.html
CONTACT:
Bill Tomko, Group President, BISYS Investment
Services, +1-614-470-8043
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