Defendant Name: Franklin Advisers, Inc.

Defendant Type: Subsidiary of Public Company

Document Reference: IA-2906

Document Details

Legal Case Name In the Matter of Franklin Advisers, Inc.
Document Name Order Modifying Respondent's Obligation to Undergo Third Party Compliance Reviews
Document Date 20-Jul-2009
Document Format Administrative Proceeding
File Number 3-11572
Allegation Type Investment Advisers/Investment Companies
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Compliance Related Independent Consultant
Modification of earlier SEC order imposing annual third party compliance review on the Respondent to limit the review to only 2005 and 2007
Monetary Penalties:

Disgorgement

(Penalty was noted in document, but no amount was listed)

Civil Penalty

(Penalty was noted in document, but no amount was listed)

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"
34-57808 09-May-2008 Administrative Proceeding
Order Approving Modified Distribution Plan
On August 2, 2004, the Commission settled proceedings against Franklin Advisers, Inc. for allowing certain parties to conduct market timing in mutual funds it advised, violating Sections 206(1) and 206(2) of the Investment Advisers Act and Section 34(b) of the Investment Company Act. Franklin paid $30 million in disgorgement and $20 million in civil penalties, creating a $50 million Fair Fund, and hired retired Judge Charles B. Renfrew as Independent Distribution Consultant
34-57808-mdp 09-May-2008 Administrative Proceeding
Modified Plan Of Distribution
The document is a final Commission order, not a judicial or ALJ decision. It approves the modified distribution plan for a previously settled case involving Franklin Advisers, Inc., with no new enforcement actions, investigative offices, or cited statutory authorities beyond what is described in the plan itself.
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."
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.