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Administration September 24, 2008
SEC Announces Compensation for Franklin-Templeton Funds Investors
September 24, 2008 (PLANSPONSOR.com) - The
Securities and Exchange Commission (SEC) has announced a Fair
Fund distribution of approximately $49 million to investors
affected by improper market timing in mutual funds managed by
Franklin Advisers, Inc. of the Franklin-Templeton Investments
complex.
Reported by Rebecca Moore
According to a news release, the remainder of the Fair Fund, approximately $5.7 million, including earned interest, is scheduled to be distributed next month.
In 2004, the SEC brought settled administrative and cease-and-desist proceedings charging Franklin with improperly allowing market timing in mutual funds it managed from 1996 to 2001 (see Franklin Settles Market Timing Allegations ). The SEC’s order required Franklin to pay a total of $50 million in disgorgement and penalties and undertake certain compliance reforms. Franklin consented to the order without admitting or denying the findings, the news release said.
The Fair Fund Administrator responsible for distribution is Boston Financial Data Services, Inc. (BFDS). Investor questions regarding the distribution may be directed to BFDS at (866) 700-0131.
Information regarding the distribution can also be obtained at the Franklin-Templeton Web site: http://www.franklintempleton.com/retail/jsp_cm/home/MF_trading_practices.jsp .