RegulatoryJun 5, 2026, 09:06 AM
Franklin Resources Subsidiary Western Asset Settles SEC Probe for $100M
AI Summary
Franklin Resources' wholly-owned subsidiary, Western Asset Management Company, LLC, has resolved investigations by both the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC). The DOJ has closed its investigation into Western Asset, taking no further action. Western Asset reached a settlement with the SEC, agreeing to pay a civil penalty of $100 million into a Fair Fund for investors, without admitting wrongdoing. The company stated this was a business decision to avoid prolonged litigation and focus on clients.
Key Highlights
- Franklin Resources' subsidiary, Western Asset, settled an SEC investigation regarding alleged trade allocation violations.
- Western Asset agreed to pay a civil penalty of $100 million into a Fair Fund for the benefit of investors.
- The settlement resolves the SEC's investigation in its entirety.
- The U.S. Department of Justice (DOJ) notified Western Asset it is no longer a subject of its investigation.
- The DOJ will take no further action against Western Asset.
- Western Asset settled as a business decision to avoid prolonged litigation.
Price Impact
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