BISYS Fund Services is responding to an investigation initiated by the Securities and Exchange Commission, confirmed Bisys officials Monday evening.

Multiple fund firms rely on Bisys Fund Services for outsourced services. Since it holds records for numerous firms Bisys and other outsourced providers are logical places for regulators to look as they learn about industry practices.

Bisys officials said they believe that the investigation generally flows from the SEC's industry-wide request for information from mutual funds and mutual fund service providers that began in early 2004.

The investigation primarily concerns the payment by Bisys of expenses related to the marketing and distribution of the shares of certain of its mutual fund clients.

Bisys said it is fully cooperating with the SEC. 

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