Defendant Name: Franklin Advisers, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Franklin Resources Inc.
SIC Code: 6722
CUSIP: 35461310

Initial Case Details

Legal Case Name In the Matter of Franklin Advisers, Inc., and Franklin Templeton Investments Corp.
First Document Date 02-Jul-2020
Initial Filing Format Administrative Action
File Number 3-19854
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Related Violations Alleged

Franklin Advisers, Inc. is alleged to have caused an unidentified individual or entity's violation of Rule 38a-1(a) Investment Company Act.

Resolutions

First Resolution Date 02-Jul-2020
Headline Total Penalty and Disgorgement $250,000

Related Documents:

IA-5531 02-Jul-2020 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 9(f) of the Investment Company Act of 1940 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On July 2, 2020, the SEC instituted settled cease-and-desist proceedings against Franklin Advisers, Inc., and Franklin Templeton Investments Corp. The SEC stated: "These proceedings arise out of FAV and FTIC causing certain funds they managed to violate Section 12(d)(1)(A) of the Investment Company Act ("Section 12(d)(1)(A)"), which limits an investment company's ownership interests in other investment companies."
IA-5531-s 02-Jul-2020 Administrative Summary
SEC Charges Franklin Advisers with Breach of Fiduciary Duty and Violating Investment Company Limitations
The SEC stated that: "[It] settled charges against California-based Franklin Advisers, Inc., a registered investment adviser, for breaching its fiduciary duty to its client funds and failing to follow its own policies and procedures, and settled charges against Franklin Advisers and Toronto-based Franklin Templeton Investments Corp., also a registered investment adviser, for causing client funds to violate investment limitations."

Other Defendants in Action:

Franklin Templeton Investments Corp.