Franklin Advisers, the US asset manager, will pay $50m (€41.6m) in settlement with US regulators over charges that it allowed improper trading of some mutual funds it ran on behalf of Franklin Templeton, the fourth largest mutual fund company in the US.

Franklin will pay disgorgement of $30m and a civil penalty of $20m. These amounts will be distributed to ordinary shareholders who were adversely affected by the improper trading, or market timing, which involved rapid trading of mutual fund shares.