The SEC has approved
Putnam Investment's plan to distribute restitution and disgorgements to shareholders. The plan covers the repayment of $40 million to fund shareholders that had been placed with the Fair Fund under the Sarbanes Oxley Act of 2002.
Putnam agreed to make the payments as part of its March settlement with the SEC over allegations that it had failed to fully and adequately disclose to shareholders and trustees conflicts of interest created by using commissions to pay for preferred marketing arrangements.
Under the plan, which was filed on May 19, each Putnam will receive a proportionate share of the disgorgement and penalty based upon the amount of brokerage commissions coded for these arrangements attributed to each of the Putnam Funds.
The SEC staff said it received one comment on the proposed distribution plan.
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