Franklin Templeton Puts State, SEC Charges in the Past
Family still faces an SEC investigation into distribution practices, though.
Franklin Templeton's recent settlements with the California attorney general, Securities and Exchange Commission and the state of Massachusetts contained some new revelations about the extent of market-timing and revenue sharing at the fund complex, but not enough to change our opinion of the firm. Investors can still proceed with caution at the family.
On Nov. 17, 2004, Franklin agreed to pay a total of $18 million to settle charges leveled by the California attorney general that the company failed to properly inform investors about payments it made to gain access to brokers who sold the firm's funds. As part of the settlement, Franklin will pay $14 million to its funds, and $4 million in penalties and costs to the state of California.
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.