SunGard president and CEO Russ Fradin has apologised for the technical failure of its hosted InvestOne fund accounting platform, which left BNY Mellon’s net asset value (NAV) calculation and processing disrupted.
The InvestOne platform supported BNY Mellon’s US clients, and the failure affected 66 fund accounting clients and about 1,200 fund structures.
The majority of system-generated NAVs have now been completed.
SunGard has issued a statement saying it is confident that no data has been lost, and stressing that the issue was not a result of either hacking or unauthorised access to the system, or the recent turbulence in the equity markets.
The issue was reportedly caused by complications in the process of an upgrade scheduled for 22 August. Both the InvestOne platform and SunGard’s backup environment became corrupted.
The statement also called the glitch an “isolated incident” and “not an application issue with InvestOne itself”.
Fradin said: “We at SunGard apologise to BNY Mellon for the adverse impact this unfortunate incident has had on its operations and clients.”
“We take this matter very seriously and truly appreciate the spirit of cooperation from BNY Mellon. We are committed to restoring the trust placed in us by BNY Mellon and all of our valued customers.”
In a teleconference, BNY Mellon’s chairman and CEO Gerald Hassel said: “We […] fully recognise the importance of our role and the importance of mutual fund and ETF products to the market and investors, particularly during a time of market volatility.”
“Our focus from the outset has been on working closely with SunGard to restore their platform to improve reliability and performance.”
He added: “It has taken far longer than any of us would have expected.”
Suresh Kumar, chief information officer at BNY Mellon added that the firm still has faith in the upgrade of InvestOne. He said: “We believe the new instance of InvestOne is reliable and sustainable.”
He added: “We also have a new disaster recovery system and it is receiving updates real-time. We are establishing a third instance and we are backing up the data, so we believe we have a reliable backup in place.”
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