BISYS' ComplianceEDGE(TM) Program Supports Mutual Fund Clients with Turnkey
Compliance Solution, Including the Ability to Serve as Fund's CCO
NEW YORK, April 7 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
business process outsourcing solutions for the financial services sector,
today announced the introduction of its comprehensive ComplianceEDGE program,
which provides the policies, procedures, testing, reporting, and recordkeeping
required for mutual fund companies to comply with the new SEC Rule 38a-1 by
October 5, 2004.
BISYS' ComplianceEDGE program was strategically designed to assist fund
companies in establishing a culture of compliance throughout their service
organizations, and to facilitate mandatory compliance with the federal
securities law established by the new SEC Rule 38a-1 of the Investment Company
Act of 1940. Initial and ongoing compliance with Rule 38a-1 requires
investment companies to develop, implement, and maintain comprehensive
compliance programs, including written policies and procedures that address
compliance with applicable federal securities laws by their funds and their
service providers. Rule 38a-1 also requires fund Boards to designate a chief
compliance officer (CCO) that reports directly to the Board and is responsible
for the implementation and maintenance of compliance programs. Fund CCOs also
must conduct annual reviews of their compliance programs and present the
results to fund Boards.
According to Fred Naddaff, president of BISYS Fund Services, "We leveraged
and enhanced BISYS' extensive compliance and regulatory expertise to develop
our ComplianceEDGE program, which is a comprehensive suite of compliance
services designed to address the new regulatory requirements. Our program
provides the policies, procedures, testing, reporting, and recordkeeping
required for compliance with Rule 38a-1. The ComplianceEDGE program also
provides funds with the ability to satisfy the CCO requirement without the
need to recruit and employ additional staff. In addition to BISYS' staff of
more than 70 industry experts and experienced consultants, which includes
former regulators from the SEC and NASD, we are recruiting additional
professionals qualified to serve in the CCO roles. Considering today's dynamic
regulatory environment, we expect that our ComplianceEDGE program, combined
with our full range of proven legal, regulatory, and compliance services, will
greatly benefit our mutual fund clients."
Lisa Hurley, executive vice president and general counsel of BISYS Fund
Services, said, "We identified a critical need among our fund clients for
consistent, expert administration of compliance programs. The ComplianceEDGE
program will enable clients to benefit from industry best practices in
implementing the required compliance policies and procedures, and will assist
them in implementing compliance programs under Rule 38a-1 that should prove to
be functionally superior and more cost-effective than a stand-alone program
developed internally by an individual mutual fund company. Our ComplianceEDGE
program also can eliminate the inherent conflicts of interest that occur when
an investment adviser employs the fund CCO. Our program provides for the
presence of a senior compliance officer across all relevant service providers
to the fund."
BISYS' ComplianceEDGE program includes the features to:
* Develop, implement, and maintain a comprehensive fund compliance
program that meets the requirements of SEC Rule 38a-1;
* Recruit and retain a Board-approved CCO;
* Provide ongoing CCO supervision; and
* Provide comprehensive administrative and consultative support utilizing
BISYS' compliance infrastructure and regulatory professionals.
As an additional option, annual reviews of compliance programs can be
independently provided by BISYS Regulatory Services. These reviews include
the:
* Assessment of fund compliance policies and procedures for adequacy and
effectiveness relative to the new SEC Rule 38a-1,
* Review of delegation arrangements and contractual obligations,
* Preparation of a written report and program assessment for the fund CCO
and Board,
* Enhancement of written policies and procedures as recommended,
* Training for fund CCOs employed by other service providers, and
* Third party annual review of separate service provider programs.
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 380 clients,
representing more than 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 approximately
390 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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Related links:
http://www.bisys.com
Company News On-Call:
http://www.prnewswire.com/comp/851938.html
CONTACT:
Fred Naddaff, President of BISYS Fund
Services, +1-614-470-8100
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