BISYS Group Inc. issued an announcement yesterday that the Securities and Exchange Commission's investigation into the structure and accounting of its arrangements with certain mutual fund advisers is continuing.
The company, which provides administrative services to financial companies, said it had agreed with certain mutual funds to pay for expenses related to marketing and distribution of fund shares, as well as payments to some advisors, among other payments. BISYS also indicated that it has hired three separate law firms to handle ongoing internal and external investigations into these practices, including its handling of "certain other expenses."
While the firm's audit committee, which has retained Paul, Weiss, Rifkind, Wharton & Garrison, "will attempt to complete the investigation promptly," ongoing employee interviews and depositions may delay the firm's scheduled third-quarter 10-Q filing on May 10.
BISYS also said it had disclosed some of the arrangements to the SEC which were made before December 2003, and were or are being terminated. Wilmer, Cutler, Pickering, Hale and Dorr LLP is handling its internal investigation, in cooperation with requests from the SEC.
BISYS has also retained Skadden, Arps, Slate, Meagher & Flom LLP to represent it in response to information requests and subpoenas from the Commission, now working in cooperation with the United States Attorney's Office for the Southern District of New York.