The CEO of Franklin Resources, despite earlier indications that he was on the cusp of being reprimanded for allowing improper trades within his firm, will not face civil lawsuit recommendations from the Securities and Exchange Commission, the company said in a filing with the Commission Tuesday.
Gregory Johnson, who also serves as president of Franklin, the No. 1 publicly traded mutual fund company, thus is separated from the market-timing abuses that several of his current and former employees have been involved with.
On Feb. 17, the company had said the Commission was considering action against him. The SEC is still discussing the situation stemming from Franklin Advisers, a wing of Franklin, the filing continued.
Previously, a market-timing arrangement made by a former employee back in 2001 was deemed not to be harmful to investors. Although the company has admitted to a smattering of improper trades made by current and past employees in personal retirement accounts, it is adamant that neither Johnson nor other members of top management ever authorized the practices.