Franklin Resources' Subsidiary to Pay $100M to Settle SEC Investigation

Franklin Resources, Inc. announced its wholly-owned subsidiary, Western Asset Management Company, LLC, has reached a settlement with the U.S. Securities and Exchange Commission (SEC) to resolve an investigation into alleged trade allocation violations. This settlement, along with the conclusion of a parallel U.S. Department of Justice (DOJ) investigation, ends the regulatory inquiries into the matter.

Key Details

• SEC Settlement: As part of the agreement reached on June 4, 2026, Western Asset will pay a $100 million civil penalty without admitting any wrongdoing.
• DOJ Investigation: The DOJ has separately notified Western Asset that it is no longer a subject of its investigation and will take no further action.
• Investigation Background: The investigations concerned alleged violations of laws related to trade allocations by a former co-Chief Investment Officer of Western Asset.