Violation Tracker Individual Record

Company: 
Franklin Advisers, Inc. and Franklin Templeton Distributors, Inc.
Current Parent Company: 
Franklin Resources
Penalty: 
$20,000,000
Year: 
2004
Date: 
December 13, 2004
Offense Group: 
financial offenses
Primary Offense: 
investor protection violation
Violation Description: 

Franklin Advisers, Inc. and Franklin Templeton Distributors, Inc., the investment adviser and principal underwriter and distributor affiliated with the Franklin Templeton mutual funds, agreed to pay $20 million to settle allegations that, without proper disclosure, they used fund assets to compensate brokerage firms for recommending the Franklin Templeton mutual funds over others to their clients.

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Securities and Exchange Commission
Civil or Criminal Case: 
civil
HQ Country of Parent: 
USA
HQ State of Parent: 
California
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
financial services
Specific Industry of Parent: 
financial services
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.