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Franklin Templeton Puts State, SEC Charges in the Past

Family still faces state investigations into distribution practices, though.


Franklin Templeton's recent settlements with the Securities and Exchange Commission and the state of Massachusetts contained some new revelations about the extent of market-timing at the fund family, but not enough to change our opinion of the firm. Investors can still proceed with caution at the family.

On Monday, Sept. 20, 2004, Franklin and its subsidiaries, Franklin Advisers, Inc., and Franklin Templeton Alternative Strategies, Inc. agreed to pay a $5 million fine to the Securities Division of the Office of the Secretary of the Commonwealth of Massachusetts to settle market-timing charges filed in February. Franklin did not admit or deny wrongdoing, but said in a regulatory filing that it "believes that it is in the best interest of the company and its funds' shareholders to settle this issue now and move forward."

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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.