Franklin Templeton Resources has placed three employees on 'administrative' leave as the company continues its investigation into mutual fund trading irregularities at the firm.
According to various news reports, the company began its investigation after disclosing in a SEC filing that some of its current and former employees engaged in market timing in some of its funds in their 401(k) accounts.
"These individuals include one trader and one officer of the funds," the company said in a statement. "Two individuals have been placed on administrative leave and the officer has resigned from his positions with the funds."
Also, pending the completion of an investigation, another officer of a subsidiary could be placed on administrative leave.
Lisa Gallegos, a spokeswoman for the company, told Reuters that the officer with the subsidiary was different from the officer mentioned in the SEC filing, and three people in total were placed on administrative leave.
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