Franklin Firms Settle Charges With SEC in Fund Shelf-Space Case

Hume, Lynn
December 2004
Bond Buyer;12/14/2004, Vol. 350 Issue 32029, p4
Trade Publication
The article presents information on Franklin Advisers Inc. and Franklin Templeton Distributors Inc. decision to pay $20 million in civil penalties to Securities and Exchange Commission. They were charged with failure to disclose to mutual fund boards and shareholders that they used fund assets to compensate brokerage firms for recommending Franklin funds over others. Securities and Exchange Commission claimed that between 2001 and 2003 the two firms had so-called shelf space arrangements with 39 broker-dealers under which they allocated $52 million from brokerage commissions to the broker-dealers in return for pushing Franklin funds to clients.


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