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August 17, 2005 at 08:00 PM
The top executive at BISYS Group Inc. says most companies that run mutual funds will be facing the same kinds of regulatory scrutiny about compensation arrangements that his company is facing.[@@]
Russell Fradin, chief executive officer of BISYS Group Inc., New York, made that prediction Tuesday during a conference call with analysts.
BISYS sells sales, marketing support and administrative support services to mutual fund companies, life insurers, banks and other financial services companies. The company bills itself as the nation’s largest independent wholesale distributor of life insurance.
BISYS has had to delay the release of its financial statements because of accounting concerns, and the U.S. Securities and Exchange Commission is investigating allegations that BISYS and advisors of some mutual funds may have made improper agreements about the use of the fees that the fund companies paid to BISYS.
Despite the investigation, “we’ve continued to win business,” Fradin said during the conference call.
Some potential customers are suffering from “frozen decision-making,” but “this is an industry issue,” Fradin says. “This isn’t a BISYS issue.”
Fradin also said that:
- BISYS began searching for a candidate to replace James Fox, the company’s chief financial officer, in January. The company announced Tuesday that Bruce Dalziel, CFO of DoubleClick Inc., New York, will be taking over as CFO.
