Defendant Name:
BISYS Fund Services Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
BISYS Group
SIC Code:
7374
CUSIP:
05547210
Initial Case Details
Legal Case Name
In the Matter of BISYS Fund Services, Inc.
First Document Date
26-Sep-2006
Initial Filing Format
Administrative Action
File Number
3-12432
Allegation Type
Investment Advisers/Investment Companies
Violations Alleged
Related Violations Alleged
BISYS Fund Services Inc. is alleged to have aided and abetted an unidentified individual or entity's violation of Sections 206(1), 206(2) Investment Advisers Act; Section 34(b) Investment Company Act (willfully/knowingly).
BISYS Fund Services Inc. is alleged to have caused an unidentified individual or entity's violation of Sections 206(1), 206(2) Investment Advisers Act; Section 34(b) Investment Company Act.
BISYS Fund Services Inc. is alleged to have caused an unidentified individual or entity's violation of Sections 206(1), 206(2) Advisers Act; Sections 12(b), 34(b) Investment Company Act; Rule 12b-1(d) Investment Company Act (willfully/knowingly).
Resolutions
First Resolution Date
26-Sep-2006
Headline Total Penalty and Disgorgement
$21,402,817
Related Documents:
IA-2554
26-Sep-2006
Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 203(k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940 as to BISYS Fund Services, Inc.
On September 26, 2006, the SEC instituted settled administrative and cease-and-desist proceedings against BISYS Fund Services Inc. According to the SEC: "These proceedings arise out of improper arrangements between BISYS Fund Services, Inc. ('BISYS' or 'Respondent'), a mutual fund administrator, and 27 mutual fund advisers in which BISYS aided and abetted the advisers' improper use of fund assets for marketing and other expenses incurred by the advisers. BISYS entered into side agreements obligating BISYS to rebate a portion of its administration fee to the funds' advisers so that the fund advisers would continue to recommend BISYS as an administrator to the fund board of trustees. Through these side agreements, fund advisers used fund assets to pay for marketing expenses incurred by the advisers to promote the funds. Occasionally, fund advisers also used the money dedicated by BISYS pursuant to these arrangements to pay expenses entirely unrelated to marketing, including check fraud losses, seed capital for new mutual funds, and settlement of disputes with third parties."
34-60011
29-May-2009
Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
The Commission stated: "Notice is hereby given . . . that the Division of Enforcement has filed with the Commission the proposed plan ("Distribution Plan") for the distribution of monies in In the Matter of BISYS Fund Services, Inc."
34-60435
05-Aug-2009
Administrative Proceeding
Order Extending Time to Enter an Order Approving or Disapproving Distribution Plan
The SEC stated: "Pursuant to Rule 1104 of the Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1104, for good cause shown, the time for entering an Order approving or disapproving the proposed distribution plan is extended to September 28, 2009."
34-60719
25-Sep-2009
Administrative Proceeding
Order Approving Distribution Plan, Appointing a Fund Administrator, and Waiving Bond
The Commission stated: "[I]t is hereby ORDERED that the Distribution Plan is approved. It is hereby ORDERED . . . that Rust Consulting is appointed as the Fund Administrator in accordance with the terms of the Distribution Plan and that the bond requirement is waived for good cause shown."
34-62498
14-Jul-2010
Administrative Proceeding
Order Directing Disbursement of Fair Fund
On July 14, 2010, the SEC order that the "Commission staff shall transfer $22,422,911.40 of the Fair Fund to U.S. Bank, and the Fund Administrator shall distribute such monies to investors, as provided for in the Distribution Plan."
34-71301
14-Jan-2014
Administrative Proceeding
Order Authorizing the Transfer of Residual Funds and Any Future Funds Received by the Fair Fund to the U.S. Treasury, Discharging the Fund Administrator, and Terminating the Fair Fund
On January 14, 2014, the SEC ordered that the "$12,765.58 balance in the Fair Fund shall be transferred to the U.S. Treasury, and any future funds received by the Fair Fund will also be transferred to the U.S. Treasury". The SEC also order the discharge of the Fund Administrator and the termination of the Fair Fund. According to the SEC: "The Fair Fund distributed $22,422,911.40 to twenty seven mutual fund families affected by the conduct discussed in the [September 26, 2006] Order. The Fair Fund was allocated proportionally: first, by distributing the portion of the disgorgement and prejudgment interest amounts attributable to each Fund Family; and second, by distributing the penalty based on the amount of administration fees paid by each Fund Family that were allocated to marketing expenses during the period July 1, 2999 through June 30, 2004. Approximately 99.94% of the Fair Fund was distributed."
Proposed Plan of Distribution
The Commission stated that: "Respondent BISYS Fund Services, Inc. ("BISYS"), now known as Citi Fund Services, Inc., in consultation with the Independent Distribution Consultant ("IDC"), submits this Proposed Plan of Distribution (the "Plan") to the Securities and Exchange Commission ("Commission") for review."
