BNY Mellon agreed to pay $3 million to resolve a Massachusetts
Securities Division investigation into a failure of its accounting
system after an upgrade in 2015 led to inaccurate mutual fund
pricing. BNY Mellon was unable to calculate the net asset value of
approximately 1,200 funds, causing improper pricing that affected
66 institutional clients. BNY Mellon said it's not aware of any
investor losses that resulted and that it calculated net asset
values using other methods. Massachusetts Secretary of State
William Galvin said "It was very sloppy
bookkeeping" on BNY Mellon's part, however the Securities
Division also stated the company implemented reforms to its
internal controls after the problem occurred.
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