Franklin Resources indicated in a recent government filing that it is close to reaching a financial settlement with securities regulators who have charged the company with improper trading activities, The San Francisco Chronicle reports. The company also said the SEC may recommend civil charges for improper trading.

Franklin, which expects to reach a settlement by June, also said in the government filings that it took a $60 million charge last quarter to meet expenses tied to the government’s ongoing investigation.

The SEC put Franklin on notice that it will call for civil charges to be filed against its Franklin Advisors subsidiary for permitting a select group of preferred clients to engage in market timing activities. Massachusetts’ Secretary of State filed civil fraud charges against Franklin in February alleging that the mutual fund provider gave Daniel Calugar, a wealthy investor headquartered in Las Vegas, permission to time its funds in exchange for a $10 million investment. The company is also facing a raft of lawsuits from private investors seeking compensation for losses attributed to fiduciary improprieties.


The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.