Bank of New York Mellon : BNY Mellon to pay $3 million after Massachusetts probe of funds glitch

(Reuters) – Bank of New York Mellon Corp has agreed to pay $3 million in settling a state investigation into problems it faced in calculating net asset values on some 1,200 mutual funds last August, Massachusetts’ top securities regulator said on Monday.
Massachusetts Secretary of the Commonwealth William Galvin said the New York trust bank had subcontracted the calculations to a third party and lacked a backup plan when the sub-contractor was unable to calculate net asset values for the funds. The lack of the plan “represents a departure from high standards of commercial honor,” the settlement agreement states, according to Galvin’s office.

The glitch unsettled broad parts of the fund industry last summer and highlighted how reliant BNY Mellon remained on a patchwork of technology platforms.

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