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Franklin Disciplines Three Employees for Market-Timing

Firm says no portfolio managers, analysts, or executives made improper trades.

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 Franklin Resources (BEN) has placed three employees on administrative leave after discovering questionable trading practices in its fund families, according to regulatory filings and company statements.

In a filing with the Securities and Exchange Commission, Franklin Resources, which owns the Franklin, Templeton, and Mutual Series fund families, said a review of fund trading practices at its subsidiaries has "identified various instances of frequent trading where we have questions about the propriety of what occurred." Franklin added that an officer of one of its units has been placed on administrative leave as it collects more facts about the trading, the filing said. The firm would not name the officer or the subsidiary.

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Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.