Defendant Name: Franklin Advisers, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Franklin Resources Inc.
SIC Code: 6282
CUSIP: 35461310

Initial Case Details

Legal Case Name In the Matter of Franklin Advisers, Inc.
First Document Date 02-Aug-2004
Initial Filing Format Administrative Action
File Number 3-11572
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(1), 206(2) Investment Advisers Act; Section 34(b) Investment Company Act

Resolutions

First Resolution Date 02-Aug-2004
Headline Total Penalty and Disgorgement $50,000,000

Related Documents:

IA-2271 02-Aug-2004 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 and Sections 9(b) and 9(f) of the Investment Company Act of 1940, Making Findings and Imposing Remedial Sanctions and Issuing a Cease-and-Desist Order
On August 2, 2004, the SEC instituted settled administrative and cease-and-desist proceedings against Franklin Advisers, Inc. According to the SEC: "Franklin acted contrary to public disclosures and in violation of fiduciary duties when it allowed certain parties to market time funds it advised."
34-56603 03-Oct-2007 Administrative Proceeding
Order Extending Time to Enter an Order Approving or Disapproving Distribution Plan
The Commission ordered that: " for good cause shown, the time for entering an order approving or disapproving the proposed distribution plan is extended through November 30, 2007."
34-56829 20-Nov-2007 Administrative Proceeding
Order Extending Time to Enter an Order Approving or Disapproving Distribution Plan
The SEC stated: "IT IS ORDERED that: Pursuant to Rule 1104 of the Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1104, for good cause shown, the time for entering an order approving or disapproving the proposed distribution plan is extended through December 28, 2007"
34-59000 21-Nov-2008 Administrative Proceeding
Order Directing Disbursement of Fair Fund
The Commission ordered that: "the Commission staff shall transfer $5,753,326.58 of the Fair Fund and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan."
IA-2906 20-Jul-2009 Administrative Proceeding
Order Modifying Respondent's Obligation to Undergo Third Party Compliance Reviews
The SEC stated: "IT IS HEREBY ORDERED that: A. Section IV.E. of the 2004 Order is amended as follows to order: E. Compliance Review. In 2005 and 2007, Franklin shall undergo a compliance review by a third party, who is not an interested person, as defined in the Investment Company Act, of Franklin. At the conclusion of these reviews, the third party shall issue a report of its findings and recommendations concerning Franklin’s supervisory, compliance, and other policies and procedures designed to prevent and detect breaches of fiduciary duty and federal securities law violations by Franklin and its employees in connection with their duties and activities on behalf of and related to the FT funds. The reports shall be promptly delivered to Franklin’s chief compliance officer, the independent trustees and directors of the FT funds, and to the Compliance or Audit Committee of the board of trustees or directors of each FT fund. B. All other provisions of the 2004 Order remain in effect."
34-62016 30-Apr-2010 Administrative Proceeding
Order Directing Disbursement of Fair Fund
On April 30, 2010, the SEC ordered that "the Fund Administrator shall disburse the amount stated in the validated payment file, $11,402,009.02, as provided for in the Plan."
34-65390 23-Sep-2011 Administrative Proceeding
Order Discharging Plan Administrator and Terminating Fair Fund
On September 23, 2011, the SEC ordered "the $54,615.08 remaining in the Fair Fund, including a tax return that was returned to the fund, shall be transferred to the U.S. Treasury". The SEC also ordered the termination of the Fair Fund, the discharge of Boston Financial Data Services as the Fund Administrator, and that any funds returned in the future to the Fair Fund shall be transferred to the U.S. Treasury.