Franklin Templeton Investments settled with California this week for failing to disclose its shelf-space arrangements with brokers. The fund company agreed to pay $18 million, $14 million of which will be refunded to investors, said California Attorney General Bill Lockyer. Another $2 million is for a civil penalty and $2 million is to reimburse Lockyer’s office for the investigation.

In settling, the company admitted no wrongdoing but agreed to fully disclose its shelf-space arrangements to investors going forward.

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.