JP Morgan questioned by SEC over Bisys relationship

30 october 2006

US Wall Street bank JP Morgan Chase has confirmed that it has received a letter from the Securities and Exchange Commission (SEC) requesting information on its dealings with Bisys Fund Services.

Bisys recently agreed to pay a $21.4 million settlement to the SEC amid charges that it had paid kickbacks to fund companies in order to secure contracts for fund services.

The SEC alleged that more than $230 million was paid by Bisys to fund managers between 1999 and 2004 in agreements that were not disclosed to either the funds' boards or shareholders.

It is believed that the current investigation is connected, with the SEC requesting details of services provided to Bank One mutual funds - now under the control of JP Morgan.

According to JP Morgan, a Bisys affiliate called the Group One Services Company provided services to Bank One until 2000.

The SEC said that several other fund companies were also still under investigation, although they have not been named.

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