Franklin Resources is folding a fund at the heart of the First Command sales imbroglio. The San Mateo, California-based fund firm said it will fold the Templeton Capital Accumulator Fund into its Templeton Growth Fund.
First Command also sold funds from Fidelity Investments, AIM Investments,and Pioneer Investments.
Franklin's Capital Accumulator holds $690 million in assets, a small portion of the $21 billion in Templeton Growth.
Officials at Franklin revealed the move in an SEC filing. That document explained that the decision was made in response to proposed legislation that forbids contractual plans. If passed, the law would make the fund unlikely to grow in the future, according to the filing.
First Command Financial Planning was the largest distributor of the fund. The Fort Worth, Texas-based broker dealer stopped selling contractual plans earlier this month and has agreed to paying $12 million in fines for using misleading sales tactics.
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