Market Irregularities: Franklin Templeton repeatedly fined by Global Regulators

By Vinay Murty, October 16 2020 04:46 PM

Friends, ever since Franklin Templeton Mutual Fund abruptly closed down 6 debt schemes six months ago collectively pushing over 3 lakh of Unit Holders like us into this Rs 28,000 crore black hole, I have been spending sleepless nights over the internet trying to find out more about these guys. And to my utter shock and dismay, I have found that Franklin Templeton Group is a habitual and repetitive financial offender that has been reprimanded and penalised by leading regulators across the world!

The United States Security Exchange Commission (US-SEC) Report, 2019 shows that Franklin Templeton has repeated instances of regulatory violations to its discredit! Sample these:

  1. On April 11, 2019, the Financial Supervisory Service (FSS), Korea, imposed institutional caution and fine of KRW 50 million, ultimately reduced to KRW 40 million (approximately $34,036 at the time of payment) for timely payment against Franklin Templeton Investment Trust Management Co. LTD. (FTITMC).
  2. On March 5, 2016, India’s SEBI fined the Franklin Templeton Assets Management Company (India) Rs 10 lakh for its Investment Committees not operating from India and all investment related decisions being taken from outside India, casting aspersions of breach of regulatory norms.
  3. On December 14, 2010, the Securities and Futures Commission, Hong Kong issued public censure of Templeton Asset Management Ltd (TAML) after finding that TAML breached Rule 22 of the Hong Kong Takeovers Code as a result of TAML's inadvertent failure to disclose its dealings in the shares of a Hong Kong company between January 26-April 15, 2010.
  4. On March 3, 2005, the Ontario Securities Commission (OSC), Canada, censured Franklin Templeton Investment Corp (FTIC) after finding several anomalies in their market timing activity. Later, FTITMC and OSC resolved this after an agreement.
  5. In 2004, various arms of Franklin Templeton reached agreements with the US SEC for a series of market-related irregularities.
    1. On December 13, 2004, Franklin Advisors (FAV) and Franklin Templeton Distributors, Inc. (FTDI) settled with SEC on issues related to payments to securities dealers who sell fund shares.
    2. On November 19, 2004, Franklin Resources (FRI) and the Securities Division Office of the Secretary of the Commonwealth of Massachusetts, settled on issues related to market timing activity.
    3. On September 9, 2004, FAV and FTASI settled with the Commonwealth of Massachusetts issues related to market timing activity.
    4. On, August 2, 2004, the FAV and the SEC settled issues related to market timing activity.
By JohnSumu, October 30 2020 11:41 AM

By Raghunath Jha, October 28 2020 06:20 PM
Superb info on franklin frauds. But what to make of this? That all over world, these people take investor money and mismanage it? Rampant malpractices allowed? How come?

By Shilpa Rao, October 19 2020 04:10 PM
If that's what leading market regulators of the world are doing, exposing Franklin Templetons market irregularities and penalising them, what is our own SEBI doing about FTMF fraud? Is Sebi guarding our interests or their interests?