Post by sandi66 on Sept 23, 2008 19:09:02 GMT -5
SEC Announces Fair Fund Distribution to Investors Harmed by Market Timing in Franklin-Templeton Funds
FOR IMMEDIATE RELEASE
2008-223
Washington, D.C., Sept. 23, 2008 — The Securities and Exchange Commission today announced a Fair Fund distribution of approximately $49 million to investors who were affected by improper market timing in mutual funds managed by Franklin Advisers, Inc. (Franklin) of the Franklin-Templeton Investments complex.
The remainder of the Fair Fund, approximately $5.7 million including earned interest, is scheduled to be distributed next month.
"This distribution to more than one million recipients reflects the SEC's commitment to compensating investors harmed by misconduct," said Marc J. f*gel, Director of the SEC's San Francisco Regional Office.
The Sarbanes-Oxley Act of 2002 gave the SEC authority to increase the amount of money returned to injured investors by allowing civil penalties to be included in Fair Fund distributions. Prior to Sarbanes-Oxley, only disgorgement could be returned to investors. Since 2002, SEC enforcement actions have resulted in more than $4 billion in distributions to investors.
"As the investors' advocate, the SEC continues to make increasing use of the new authority provided by Congress so that we can return as much money as possible from wrongdoers to harmed investors," said Dick D'Anna, Director of the SEC's Office of Collections and Distributions.
In 2004, the SEC brought settled administrative and cease-and-desist proceedings charging Franklin with improperly allowing market timing in mutual funds it managed from 1996 to 2001. The SEC's order in the proceedings found that Franklin violated certain provisions of the federal securities laws and ordered Franklin to cease and desist from such violations. The order further required Franklin to pay a total of $50 million in disgorgement and penalties and undertake certain compliance reforms. Franklin consented to the order without admitting or denying the findings.
The Fair Fund Administrator responsible for distribution is Boston Financial Data Services, Inc. (BFDS). Investor questions regarding the distribution may be directed to BFDS at (866) 700-0131. Information regarding the distribution can also be obtained at the Franklin-Templeton
Statement on Current Industry Issues
September 10, 2008
To Our Valued Shareholders and Clients:
We would like to update you with regard to governmental investigation of various mutual fund industry practices as it pertains to our Company and its subsidiaries.
Franklin Resources, Inc. (Franklin Templeton Investments) strongly supports regulatory efforts designed to improve the clarity and consistency of rules governing the trading and valuation of mutual fund shares. We are fully committed to the best interests of our shareholders worldwide, and have policies that are designed to protect those interests. We are committed to improving those policies as needed.
In addressing those issues, we believe Franklin Templeton Investments has emerged as an even stronger and more energized organization.
Distribution of settlement monies. Settlement monies paid under the Company's settlement agreements with regulators and a governmental entity have been distributed to relevant funds, and the remaining distribution is currently underway.
Under the terms of the Securities and Exchange Commission's ("SEC") Order concerning market timing, which was disclosed in previous public filings, the Company retained an Independent Distribution Consultant ("IDC") to develop a plan for the distribution of the settlement monies, and the IDC retained a Fund Administrator to make the distribution.
On May 9, 2008, the SEC approved the Modified Plan of Distribution(PDF, 2.95MB). On September 4, 2008, the SEC ordered the Fund Administrator to distribute the settlement monies from the fair fund to shareholders of the designated funds during the relevant periods, in accordance with the terms and conditions of the SEC's Order and the Plan. Actual distributions are expected to commence in late September 2008. Additional information can be found on the fair fund settlement website.
For details on previous settlements and interactions with regulators, please reference our filings.
Class action and derivative lawsuits. The Company and certain of the Franklin Templeton mutual funds, current and former officers, employees and directors have been named in multiple class action and derivative lawsuits, which are described in the Company's filings with the SEC. The Company believes that all of the claims made in each of the lawsuits are without merit and intends to defend itself vigorously.
Our commitment to shareholders. Franklin Templeton Investments is proud to have served individual and institutional investors for more than 60 years. As an organization, we continue to be focused on providing you with consistently superior fund performance and exceptional service. Thank you for putting your trust in us.
Web site: www.franklintempleton.com/retail/jsp_cm/home/MF_trading_practices.jsp.
# # #
Additional materials:
Plan of Distribution:
www.sec.gov/litigation/admin/2008/34-57808-mdp.pdf
Order Approving Plan of Distribution Plan and Appointing a Fund Administrator:
www.sec.gov/litigation/admin/2008/34-57808.pdf
Order Instituting Administrative and Cease-and-Desist Proceedings (Aug. 2, 2004):
www.sec.gov/litigation/admin/ia-2271.htm
For more information, contact:
Marc J. f*gel
Regional Director, SEC's San Francisco Regional Office
(415) 705-2449
www.sec.gov/news/press/2008/2008-223.htm
FOR IMMEDIATE RELEASE
2008-223
Washington, D.C., Sept. 23, 2008 — The Securities and Exchange Commission today announced a Fair Fund distribution of approximately $49 million to investors who were affected by improper market timing in mutual funds managed by Franklin Advisers, Inc. (Franklin) of the Franklin-Templeton Investments complex.
The remainder of the Fair Fund, approximately $5.7 million including earned interest, is scheduled to be distributed next month.
"This distribution to more than one million recipients reflects the SEC's commitment to compensating investors harmed by misconduct," said Marc J. f*gel, Director of the SEC's San Francisco Regional Office.
The Sarbanes-Oxley Act of 2002 gave the SEC authority to increase the amount of money returned to injured investors by allowing civil penalties to be included in Fair Fund distributions. Prior to Sarbanes-Oxley, only disgorgement could be returned to investors. Since 2002, SEC enforcement actions have resulted in more than $4 billion in distributions to investors.
"As the investors' advocate, the SEC continues to make increasing use of the new authority provided by Congress so that we can return as much money as possible from wrongdoers to harmed investors," said Dick D'Anna, Director of the SEC's Office of Collections and Distributions.
In 2004, the SEC brought settled administrative and cease-and-desist proceedings charging Franklin with improperly allowing market timing in mutual funds it managed from 1996 to 2001. The SEC's order in the proceedings found that Franklin violated certain provisions of the federal securities laws and ordered Franklin to cease and desist from such violations. The order further required Franklin to pay a total of $50 million in disgorgement and penalties and undertake certain compliance reforms. Franklin consented to the order without admitting or denying the findings.
The Fair Fund Administrator responsible for distribution is Boston Financial Data Services, Inc. (BFDS). Investor questions regarding the distribution may be directed to BFDS at (866) 700-0131. Information regarding the distribution can also be obtained at the Franklin-Templeton
Statement on Current Industry Issues
September 10, 2008
To Our Valued Shareholders and Clients:
We would like to update you with regard to governmental investigation of various mutual fund industry practices as it pertains to our Company and its subsidiaries.
Franklin Resources, Inc. (Franklin Templeton Investments) strongly supports regulatory efforts designed to improve the clarity and consistency of rules governing the trading and valuation of mutual fund shares. We are fully committed to the best interests of our shareholders worldwide, and have policies that are designed to protect those interests. We are committed to improving those policies as needed.
In addressing those issues, we believe Franklin Templeton Investments has emerged as an even stronger and more energized organization.
Distribution of settlement monies. Settlement monies paid under the Company's settlement agreements with regulators and a governmental entity have been distributed to relevant funds, and the remaining distribution is currently underway.
Under the terms of the Securities and Exchange Commission's ("SEC") Order concerning market timing, which was disclosed in previous public filings, the Company retained an Independent Distribution Consultant ("IDC") to develop a plan for the distribution of the settlement monies, and the IDC retained a Fund Administrator to make the distribution.
On May 9, 2008, the SEC approved the Modified Plan of Distribution(PDF, 2.95MB). On September 4, 2008, the SEC ordered the Fund Administrator to distribute the settlement monies from the fair fund to shareholders of the designated funds during the relevant periods, in accordance with the terms and conditions of the SEC's Order and the Plan. Actual distributions are expected to commence in late September 2008. Additional information can be found on the fair fund settlement website.
For details on previous settlements and interactions with regulators, please reference our filings.
Class action and derivative lawsuits. The Company and certain of the Franklin Templeton mutual funds, current and former officers, employees and directors have been named in multiple class action and derivative lawsuits, which are described in the Company's filings with the SEC. The Company believes that all of the claims made in each of the lawsuits are without merit and intends to defend itself vigorously.
Our commitment to shareholders. Franklin Templeton Investments is proud to have served individual and institutional investors for more than 60 years. As an organization, we continue to be focused on providing you with consistently superior fund performance and exceptional service. Thank you for putting your trust in us.
Web site: www.franklintempleton.com/retail/jsp_cm/home/MF_trading_practices.jsp.
# # #
Additional materials:
Plan of Distribution:
www.sec.gov/litigation/admin/2008/34-57808-mdp.pdf
Order Approving Plan of Distribution Plan and Appointing a Fund Administrator:
www.sec.gov/litigation/admin/2008/34-57808.pdf
Order Instituting Administrative and Cease-and-Desist Proceedings (Aug. 2, 2004):
www.sec.gov/litigation/admin/ia-2271.htm
For more information, contact:
Marc J. f*gel
Regional Director, SEC's San Francisco Regional Office
(415) 705-2449
www.sec.gov/news/press/2008/2008-223.htm