|
| Company |
Problem
|
Date |
Fund Police Opinion
|
Rating |
|
|
Fidelity
|
Charged with destroying or editing records to pass internal audit.
|
8/4/2004
|
Appears to be isolated audit issues vs. taking advantage of shareholders. Good long term track record and reasonable expenses. FundPolice is worried that with the huge influx of new $$ they may not be able to maintain results moving forward.
|
Red Light
|
|
Fidelity
|
Voluntarily eliminated its soft-dollar arrangements.
|
8/1/2004
|
We love this answer! While the majority of large companies remain in favor of "soft dollars/directed brokerage commissions", Fidelity comes right out and says THEY will pay for stock research vs. build it into hidden expenses.
|
Red Light
|
|
Fidelity
|
Due to Mutual Fund Scandals, Fidelity's funds have seen a large increase in investments. Potential for problem.
|
6/23/2004
|
Appears to be isolated audit issues vs. taking advantage of shareholders. Good long term track record and reasonable expenses. FundPolice is worried that with the huge influx of new $$ they may not be able to maintain results moving forward.
|
Red Light
|
|
|
Fidelity
|
Will not disclose information to the SEC about how much it pays its fund managers.
|
5/1/2004
|
Come on guys, what's the harm in disclosure?
|
Red Light
|
|
Fidelity (As 401k provider)
|
The SEC has requested documents that cover the details of how funds are chosen for 401(K) and other retirement plans to see if there are conflicts of interest. This investigation began as a result of the rampant abuses among mutual funds.
|
7/7/2004
|
FundPolice predicts that the up until this point "hidden and guarded conflicts of interest arrangements" in 401k plans will become the next big investigations from the likes of the NASD, SEC and Elliot Spitzer.
|
Red Light
|
|
Financial Network Investment Corp.
|
The company failed to report information about their brokers to customers. The information included customer complaints, regulatory actions, criminal charges and convictions.
|
12/2/2004
|
Hiding information from your clients does not make the problem disappear. What else are they hiding? FP warns you to steer clear.
|
Red Light
|
|
First Command
|
The company sold mutual funds to military personnel that took half of the first year's contributions for fund expenses. The funds had not been offered to regular investors for several years due to their high fees.
|
2/1/2005
|
This company should be nuked for their abusive treatment of those serving our country.
|
Red Light
|
|
First Command
|
First Command was selling mutual fund with up front sales charges that collect 50% of first-year contributions exclusively to military personnel. These funds were not sold to civilian investors for decades because of their high fees.
|
12/16/2004
|
This type of investor abuse is one of the worst FP has ever seen. First Command should "walk the plank" for this one!
|
Red Light
|
|
First Command
|
First Command Financial Services were selling inappropriate funds to military families. Those funds were removed from the market from regular investors because of the high fees. Of the first-year contributions into the funds, half of the amount is used to pay for up-front sales charges.
|
12/10/2004
|
This type of investor abuse is one of the worst FP has ever seen. First Command should "walk the plank" for this one!
|
Red Light
|
|
Fiserv Securities
|
Several employees, including a former manager engaged in "market timing."
|
6/30/2005
|
This is why fee-only advisors serve your best interest. Go to www.NAPFA.com for addtional information.
|
Red Light
|
|
Franklin Templeton
|
A wealthy investor was allowed to market time millions in Franklin's funds.
|
2/1/2005
|
"If you scratch my back...I'll screw over tons of smaller investors because they won't pay me as much."
|
Red Light
|
|
Franklin Templeton
|
Franklin will eliminate one of its funds which have recently come under scruitiny for misleading investors (mostly military personnel) during the sales process. The fund is a contractual plan that requires investors to pay monthly contributions for 15 years.
|
12/21/2004
|
Franklin only learned by example after seeing what happend to FC, to re-examine their offering of contractual plans. FP rates this a red light.
|
Red Light
|
|
Franklin Templeton
|
Canada is now pursuing cases of improper trading. Franklin will be charged with market timing and is expected to be fined heavily.
|
12/15/2004
|
Franklin seems to have expanded globally their policy of putting investors' interests last.
|
Red Light
|
|
Franklin Templeton
|
The company was in trouble for using fund assets to pay for commissions to brokers for selling Franklin funds in preference over other rival funds.
|
12/14/2004
|
$20 million means that they were caught RED handed. Use a FEE-ONLY advisor and consider lower cost ETFs.
|
Red Light
|
|
Franklin Templeton
|
Franklin did not properly disclose to fund shareholders and the fund boards their payments to brokers for "shelf space." $52 million was paid from fund assets for commissions to brokers from 2001-2003 for preferable sales of their funds.
|
12/13/2004
|
Being on a brokerage firm's "preferred list" typically means the broker is getting something "extra" to favor one product over another. Beware of commission based stock brokers.
|
Red Light
|
|
Franklin Templeton
|
Franklin sells the same type of high fee funds to military families that have recently come under scruitiny of the SEC and NASD. The funds are no longer sold to regular investors, but are still sold to military families.
|
12/10/2004
|
Franklin only learned by example after seeing what happend to FC, to re-examine their offering of contractual plans. FP rates this a red light.
|
Red Light
|
|
Franklin Templeton
|
Franklin Templeton did not include an admission to wrongdoing in an SEC filing even though during the original settlement it had admitted to being at fault. The company was charged with fraud as a result.
|
11/24/2004
|
More bad news.
|
Red Light
|
|
Franklin Templeton
|
CA Regulators will settle with Franklin for $18 million. Franklin was charged for payments made to brokers who promoted its funds. The payments made were in addition to commissions earned for selling funds.
|
11/15/2004
|
We don't like the wiggle langauage from them. With other good choices-look elsewhere.
|
Red Light
|
|
Franklin Templeton
|
Franklin Templeton denied any wrongdoing in their filing with the SEC when they had previously issued a statement that neither amitted or denied any wrongdoing. MA Secretary of State, William Galvin, charged Franklin with civil fraud.
|
10/26/2004
|
Where is Sir John Templeton when we need him? This is the latest in a series of ethical issues at FT. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Franklin Templeton
|
Charges of market timing. Including the instance of one investor who was allowed to market time $45 Millon in exchange for investing $10 Million in a Franklin hedge fund.
|
9/24/2004
|
Where is Sir John Templeton when we need him? The $45 million for $10 million situation is a classic example of the "pay to play" issues that plague the investment business. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Franklin Templeton
|
The recent settlement with the SEC divulged new information about the market-timing that occured. There were several market-timing deals that were allowed by the company even though their prospectus stated that type of trading was not allowed. Franklin decided that the market-timing was ok as long as the funds were still manageable. Later, complaints about the funds' unmanagablility were ignored.
|
9/24/2004
|
Where is Sir John Templeton when we need him? FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Franklin Templeton
|
Franklin Templeton has settled with the Massachusetts Regulators for their market-timing activities but does not admit or deny any wrongdoing.
|
9/22/2004
|
FT makes one of the few admissions of guilt confessions that we have seen. This is solid progress, but the totality of past and current problems causes FP to keep them at Red. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Franklin Templeton
|
Near settlement with the SEC over charges that Franklin did not disclose properly information on broker compensation deals.
|
9/3/2004
|
Where is Sir John Templeton when we need him? Classic example of the "pay to play" issues that plague the investment business. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Franklin Templeton
|
Charged with allowing rapid-trading in its funds.
|
8/16/2004
|
Although they have some above average funds, investors are better off seeking smaller fund firms where the manager has significant skin in the game.
|
Red Light
|
|
Franklin Templeton
|
Franklin and a former exec. allowed an investor to use rapid trading to place money into a Franklin Hedge Fund.
|
8/1/2004
|
When it rains, it pours. Now a third offense that F/T is up against.
|
Red Light
|
|
Franklin Templeton
|
Fines dampen Franklin Resources' Earnings.
|
7/23/2004
|
Although they have some above average funds, investors are better off seeking smaller fund firms where the manager has significant skin in the game.
|
Red Light
|
|
Franklin Templeton
|
SEC charged firm with sharing revenue to brokerage firms for promoting FR's mutual funds.
|
7/23/2004
|
The charge of "revenue sharing" is in addition to prior market timing charges. Although they have some above average funds, investors are better off seeking smaller fund firms where the manager has significant skin in the game.
|
Red Light
|
|
Franklin Templeton
|
A wealthy investor was allowed to market time in Franklin's funds in exchange for "sticky assets."
|
6/1/2004
|
Although they have some above average funds, investors are better off seeking smaller fund firms where the manager has significant skin in the game.
|
Red Light
|
|
Franklin Templeton
|
Frequent trading in funds occurred.
|
2/1/2004
|
Although they have some above average funds, investors are better off seeking smaller fund firms where the manager has significant skin in the game.
|
Red Light
|
|
Franklin Templeton
|
Announced it was subpoenaed in the CA investigation about defrauding investors over brokerage compensation deals.
|
11/10/2003
|
It all starts here and just gets worse. You need to work with a fund company that puts the investors best interest ahead of their own.
|
Red Light
|
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