- CCO Role is Important Component of ComplianceEDGE(TM) Program,
BISYS' Comprehensive Compliance Solution for SEC Rule 38a-1 -
- New ComplianceEDGE Program Contracted by 12 Existing Clients and has
Strong and Growing Sales Pipeline -
NEW YORK, June 14 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
business process outsourcing solutions for the financial services sector,
today announced that it has expanded its compliance services by hiring two
compliance and regulatory industry veterans, Frank Pavlak and Frederick
Schmidt, to serve as chief compliance officers (CCOs) for BISYS' mutual fund
clients using the company's recently launched ComplianceEDGE program. The CCO
role is an important component of BISYS' ComplianceEDGE program, a
comprehensive offering that provides its mutual fund clients with the
policies, procedures, testing, reporting, and recordkeeping required for
compliance with the new SEC Rule 38a-1 which takes effect October 5, 2004.
Frank Pavlak and Fred Schmidt each join BISYS with an impressive resume of
credentials garnered from blue chip asset management firms and regulatory
agencies.
Mr. Pavlak has more than 23 years' experience in the private and public
sectors of the financial services industry. Prior to joining BISYS, he served
as chief compliance officer for Oppenheimer Funds, Inc., where he had broad
regulatory compliance responsibilities for all of Oppenheimer's business
lines. Previously, he worked 18 years for the Securities and Exchange
Commission, serving as branch chief of its Denver, Colo. office; and as an
auditor with the U.S. General Accounting Office in Washington, D.C.
He holds a B.S. degree in accounting from the University of Northern
Colorado; and is an active member of several professional organizations,
including the National Society of Compliance Professionals, the Investment
Company Institute's Compliance Advisory Committee, and the Ethics Officer
Association.
Fred Schmidt, a 25-year financial services industry veteran, joins BISYS
after establishing and managing a compliance advisory company that provided
regulatory and operational consulting services to investment management
companies. Previously he held a number of positions with Credit Agricole
Indosuez during a 15-year period, rising to vice president and serving as
chief financial officer and assistant secretary of proprietary mutual funds
and related asset management subsidiaries of Credit Agricole Asset Management,
U.S. In this role, Mr. Schmidt was responsible for overseeing compliance
issues related to the company's family of offshore and domestic closed and
open-end mutual funds. He also held senior positions with The Fuji Bank &
Trust Company and Manufacturers Hanover Trust Company after beginning his
career at National Westminster Banking Corporation. He holds a B.S. degree in
marketing and management from Fordham University, and a MBA in finance from
Long Island University. He has been an active member of the Investment
Company Institute's Closed-End Fund, Risk Management, and Small Funds
Committees.
According to Fred Naddaff, president of BISYS Fund Services, "Our
ComplianceEDGE program, which we launched in April 2004, has been contracted
by 12 existing clients, with nine of these contracts including the CCO
component. Both of these highly qualified CCOs exemplify the stature of
compliance professionals we are providing to our clients as part of this
unique service offering. In an environment where increased regulatory
oversight has become necessary to protect the interests of mutual fund
shareholders, mutual fund executives are establishing the tightest possible
compliance policies and procedures. That is exactly what compliance
professionals such as Fred and Frank, supported by BISYS' more than 70
compliance professionals and the power of our ComplianceEDGE program, provide.
We expect the demand for this new compliance program to continue to grow among
our existing and prospective clients."
BISYS' ComplianceEDGE program is 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.
Lisa Hurley, executive vice president and general counsel of BISYS Fund
Services, said, "BISYS is strategically positioned as a leading provider of
compliance services for the mutual fund industry based on our expertise and
extensive experience providing a system of checks and balances that augments
our clients' compliance procedures and resources. We believe the demand for
our new ComplianceEDGE program demonstrates the importance our clients and
prospects are placing on the SEC's mandate to establish a culture of
compliance by October fifth of this year. We also believe augmenting our
compliance team with these two extremely qualified compliance professionals
will enhance the effectiveness and tangible benefits of this comprehensive
compliance solution."
BISYS expects to hire additional CCOs to support anticipated client demand
for its ComplianceEDGE program.
ComplianceEDGE services can be tailored to address each client's specific
requirements. Although the chief compliance officer role is an important part
of the ComplianceEDGE offering, BISYS' clients have the option to subscribe to
the CCO service or use their internal resources for this function. Other
service options include the provision of ongoing, independent reviews from
BISYS Regulatory Services.
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
350 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, BISYS Fund Services,
+1-614-470-8100, or Daniel Briggs, Vice President, Finance and
Investor Relations, The BISYS Group, Inc., +1-212-907-6134
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