Mutual fund services provider BISYS has beefed up its compliance services by hiring two industry veterans to serve as outsourced chief compliance officers for its fund clients.

Frank Pavlak and Frederick Schmidt will join the firm as part of its ComplianceEDGE program, one that provides its mutual fund clients with the policies, procedures and recordkeeping needed for compliance with SEC rule 38a-1, which takes effect Oct. 5.

The program is designed to help fund companies establish a culture of compliance throughout their service organizations and facilitate mandatory compliance in accordance with federal securities law. The key provision of the SEC rule is that fund companies must designate a chief compliance officer to serve as a liaison to the board of directors, as part of a larger effort to curb abusive trading practices and make funds more accountable for their behavior.

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, where he oversaw regulatory compliance responsibilities for all of Oppenheimer’s business lines.

Previously, he worked 18 years for the SEC, serving as branch chief of its Denver office. He is also an active member of the National Society of Compliance Professionals, the Investment Company Institute’s Compliance Advisory Committee, and the Ethics Officer Association.

Schmidt, a 25-year veteran of the financial services industry, joins BISYS after establishing and managing a compliance advisory company that provided consulting services to investment management companies.

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