Bank of New York revealed Tuesday that the Securities and Exchange Commission is investigating marketing and distribution costs at its BNY Hamilton mutual fund family. Last fall, BONY revealed in filings that the government and self-regulatory agencies were investigating the bank over its potential failure as a stock transfer agent to find lost shareholders, along with its fund family's relationship to an unnamed fund administrator.

The SEC evidently is spearheading the investigation and has zeroed in on the appropriateness of the funds' marketing and distribution costs and involves BONY, BNY Hamilton and a subsidiary of BISYS that acts both as the funds' administrator and underwriter.

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