The Securities and Exchange Commission has approved the proposed plan for the distribution of money to shareholders in its case against Putnam Investment Management.

Putnam must distribute total disgorgement and penalties in the amount of $40 million for its failure to disclose to its board and shareholders a conflict of interest that arose from the manner in which it employed its fund assets, primarily commissions from mutual funds-to pay for preferred marketing deals, according to the SEC.

According to the distribution plan, each fund in the Putnam family will be given a proportionate amount of the disgorgement and penalty based on the total brokerage commission credited to each.

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