The company said in a news release that it estimates its costs generated by the investigation and related issues should no be more than $25 million. BISYS said that amount would likely cover settlement expenses, legal fees and other related costs.
Also BISYS said it has reported to the SEC the fact that it had restated its financial statements for FY 2002, 2003, and 2004 – an issue that will now be included in the SEC probe of BISYS.
BISYS announced in April that its Board had started a n investigation into the certain fund services arrangements. Under investigation by the Securities and Exchange Commission (SEC) are certain arrangements under which BISYS “agreed with the advisers of certain US mutual funds to use a portion of the fees paid to [BISYS] by the mutual fund to pay for, among other things, expenses relating to the marketing and distribution of the fund shares, to make payments to certain advisers, and to pay for certain other expenses,” (See BISYS Adopts Reform on Mutual Fund Agreements).