BNY Mellon to settle with Mass. for $3M

BOSTON – Bank of New York Mellon has agreed to a $3 million settlement with Massachusetts for failing to calculate net asset values on about 1,200 mutual funds last year.
Secretary of the Commonwealth William F. Galvin last week announced the agreed settlement, saying last August BNY Mellon employed SunGard InvestOne, a Pennsylvania subcontractor, to calculate net asset values when the company suffered a corruption during a system downgrade, according to a release.
“The InvestOne outage rendered BNY Mellon unable to calculate August 24, 2015, net asset values for approximately sixty-six clients and approximately 1,200 funds by the close of the day’s trading,” according to the agreement.
Galvin said the bank failed to have a backup plan if the vendor failed, which resulted in untimely and nonuniformed information to be sent to the funds along with unbalanced distribution of information to clients.
“BNY Mellon’s failure to have in place in effective disaster plan represents a departure from high standards of commercial honor and just and equitable principals of trade in the conduct of its business,” according to the agreement.
BNY Mellon has implemented changes to its internal controls and supervisory procedures, according to the agreement.

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