Bisys has won an exemption order from the SEC for 12 of its mutual fund clients. The SEC order allows e 12 funds to collect fees from investment made in affiliated money market funds in relation to their securities lending programs. The SEC issued the order on July 8, according to Lisa Hurley, executive vice president and general counsel of Bisys Fund Services.

Bisys filed an exemptive application with the SEC on behalf of 12 of its mutual fund clients and their investment advisers. The exemptive application requested relief to invest un-invested cash and cash collateral that is received through securities lending programs in shares of affiliated money market funds in excess of statutory limits and to collect the related fees.

Under the order, non-money market funds can now invest up to 25 percent of their assets in affiliated money market funds, according to Bisys. In addition, the investment advisory fees no longer have to be reduced by the amount of the advisory fees that are payable by affiliated money market funds on the value of the assets acquired.  

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