Frequently Asked Questions (F.A.Q.)

• A payment received on an IRA account - click here
• General Information - click here
• The Independent Distribution Consultant - click here
• Special Circumstances - click here

1. I received a check made payable to my IRA. Can I deposit this back into my current IRA?

   If your retirement account is still with the custodian listed on the check, forward your check along with a letter of instruction or a completed Deposit and Investment form included on this website, to your current custodian and the funds will be deposited into your retirement account. Be sure to include your current account number with the correspondence.

   You should consult with your financial advisor or tax professional prior to cashing this check to determine the potential tax consequences and appropriate tax treatment for your particular situation.

2. My IRA is with a different company now. Can you change the check to my new fund company?

   If your retirement account is with another custodian, return the check with "void" written across the front and include a letter of instruction indicating:

   1. Your new custodian.
   2. Your current account number (if available)
   3. Send this information to the following address:

      Franklin Advisers Settlement Administration
      PO Box 859235
      Braintree, MA 02185-9235

   4. We will return the new check to you so you can forward it to your current custodian with a letter of instruction or a completed Deposit and Investment form included on this website. Please remember to include your account number and the funds you would like to have the money deposited to.

3. Why is the check made payable to my custodian and not to me?

   Your account is an individual retirement account that is held by your custodian for your benefit so it was necessary to make the check payable to the custodian.

4. Can I request that my IRA check be made payable to myself?

   If you wish to have this check made payable to yourself, you will need to do the following:

   1. Please return the check with "void" written across the front and a letter of instruction requesting it be made payable to you.
   2. Please include in your letter of instruction your date of birth.
   3. Complete and return the appropriate reissue form
   4. All applicable federal taxes and penalties will be deducted from your check as well as any required state taxes. The W-4P form is completed and submitted with your request if you wish to forgo tax withholding. A W-9 form is used to certify your Social Security # or Tax ID.
   5. Send this information to the following address. Please allow 30-45 days for the completion of this process.

      Franklin Advisers Settlement Administration
      PO Box 859235
      Braintree, MA 02185-9235

   You should consult with your financial advisor or tax professional prior to cashing this check to determine the potential tax consequences and appropriate tax treatment for your particular situation.

5. I received an IRA check made payable to my deceased wife/husband. How can I have it made payable to myself?

   If you wish to have this check made payable to yourself and you are the beneficiary, you will need to do the following:

   1. Please return the check with void written across the front. Include a letter of instruction requesting it be made payable to you. It is important that you include your date of birth to avoid any penalties if you are above the age of 59 ½.
   2. In addition, If you are not the spouse of the deceased, we require "Evidence of Appointment" (documentation that indicates the authorized party to handle the decedent's estate), such as Letters Testamentary, Court Order, Letter of Administration, Letter of Appointment or Copy of Last Will and Testament appointing beneficiaries or a copy of the designated IRA beneficiary form.
   3. You must also include a copy of the decedent's death certificate. (If the check is over $250 it must be a certified copy of the death certificate.)
   4. Complete, print, sign and return the appropriate reissue forms or we will fax or mail the form to you for completion.
   5. All applicable federal taxes and penalties will be deducted from your check as well as any required state taxes. The W-4P form is completed and submitted with your request if you wish to forgo tax withholding. A W-9 form is used to certify your Social Security # or Tax ID.
   6. Send this information to the following address:

      Franklin Advisers Settlement Administration
      PO Box 859235
      Braintree, MA 02185-9235

   You should consult with your financial advisor or tax professional prior to cashing this check to determine the potential tax consequences and appropriate tax treatment for your particular situation

6. I received an IRA check made payable to my deceased wife/husband. How can I deposit it into my IRA?

   If you wish to have this check made payable to your IRA, you will need to do the following:

   1. Please return the check with void written across the front. Include a letter of instruction, listing your current custodian, requesting it be made payable to your IRA.
   2. You must also include a copy of the decedent's death certificate. (If the check is over $250 it must be a certified copy of the death certificate.)
   3. Send this information to the following address:

      Franklin Advisers Settlement Administration
      PO Box 859235
      Braintree, MA 02185-9235

   4. We will return the new check to you so you can forward it to your new custodian with a letter of instruction and what funds you want the check deposited into in your retirement account.

7. What are the consequences of cashing this check?

   You will not be able to cash this check if it is made payable to your custodian. However, if the check is in your name then you should consult with your financial advisor or tax professional prior to cashing the check to determine the potential tax consequences and appropriate tax treatment for your situation.

8. How can I change the payee on this check?

   If you have special or unique circumstances with regard to cashing this check, please contact the Franklin Advisers Settlement Call Center at 1-866-700-0127

9. How was my distribution agreed to and calculated? How is my settlement payment calculated?

   The methodology for calculating and distributing the settlement proceeds to affected shareholders was set forth by the Independent Distribution Consultant (IDC) in the Plan of Distribution and approved by the Securities and Exchange Commission. The Plan is intended to fairly and proportionately distribute the Fair Fund to as many of the affected shareholders as is commercially reasonable. In summary, this methodology:

   • Calculated the adverse economic impact that the market timing trades caused to each affected fund as a percentage to all affected funds.
   • Apportioned the total settlement monies among the affected shareholders based on their relative holdings in the funds during the associated market timing periods.

   The Securities and Exchange Commission (SEC) gave its final approval to this plan on May 9, 2008.

10. If the amount of the distribution was very small, was it still paid out?

    The Independent Distribution Consultant, with the approval of the SEC, determined that if the initial calculated payment to a shareholder fell below $10.00, then the expense to distribute the payment would not be commercially reasonable.

    However, in order to expand the number of small investors who receive recovery pursuant to the SEC Order, the distribution plan adopted a "gross up mechanism" that will allow a large number of investors to receive $10.00 payments from the escrow fund, even though their initially calculated distribution amounts were less than $10.00.

11. What additional controls, policies or procedures has Franklin implemented to prevent excessive market timing from occurring in the future?

    In 2003, lawmakers presented a large number of new and proposed regulatory requirements for the financial services industry. FT supports the increased interest in corporate governance and believes that many of the proposals represent good business practices. In fact, they adopted a number of the New York Stock Exchange and Sarbanes-Oxley proposals before required to do so by regulations. In addition, Franklin Resources, Inc. expanded its board size, moving to a majority of independent directors, and they continue to devote a great deal of additional attention to its already strong system of internal controls. Franklin Resources, Inc. also continues to implement anti-money laundering policies and procedures as required by the U.S. Patriot Act.

    Other specific steps that FT has taken to reduce the risk of market timing are:

    • Performed routine reviews of employee trading activity in their 401(k) plan accounts.

    • Revised policies for their mutual funds in order to maintain consistent monitoring of shareholder trade activity.

    • Centralized trade control activities within a unit of the funds' Transfer Agent to avoid redundancy and allow further segregation of duties and specialized oversight.

    • Performed routine evaluation of resources, policies and procedures.

    • Dedicated staff to selectively and continually review recent trading activity to identify activity that might be contrary to the funds' market timing trading policy.

    • On May 23, 2005, the SEC adopted Rule 22c-2, commonly referred to as the "redemption fee rule." The ruling requires fund companies to enter into written agreements with their first tier intermediaries for any multi-participant (omnibus) accounts that the intermediary holds with the fund. As outlined in the rule, FT has obtained all agreements with existing firms and has incorporated language into their selling agreement for any new intermediaries.

    • Developed and administered employee education regarding industry issues, such as market timing and late day trading.

12. Who is eligible to receive a check from this settlement?

    You might be part of the settlement if you held any of the following FT funds during the applicable time range for that fund.

    Fund Name	Settlement Date Range
    Franklin CA Growth Fund	07/30/98 - 09/12/00
    Franklin California Tax-Free Income Fund	02/13/97 - 12/15/00
    Franklin Convertible Securities Fund	09/07/00 - 09/07/00
    Franklin Federal Tax-Free Income Fund	12/31/96 - 12/01/00
    Franklin Gold and Precious Metals Fund	04/04/00 - 09/11/00
    Franklin Growth and Income Fund	04/03/00 - 09/11/00
    Franklin Growth Fund	04/10/00 - 08/16/00
    Franklin Insured Tax-Free Income Fund	04/04/00 - 09/15/00
    Franklin New York Tax-Free Income Fund	04/11/00 - 08/22/00
    Franklin Real Estate Securities Fund	05/16/00 - 09/13/00
    Franklin Small Cap Growth Fund	04/03/00 - 10/18/01
    Mutual Discovery Fund	04/03/00 - 09/06/00
    Mutual European Fund	04/03/00 - 08/31/00
    Templeton Developing Markets Trust	04/03/00 - 09/14/00
    Templeton Foreign Fund	04/03/00 - 09/11/00
    Templeton Foreign Smaller Companies Fund	05/11/00 - 09/11/00
    Templeton Global Opportunities Trust	04/03/00 - 09/14/00
    Templeton Global Smaller Companies Fund	04/03/00 - 09/11/00
    Templeton Growth Fund	04/03/00 - 09/14/00
    Templeton World Fund	04/03/00 - 09/14/00

    It is important to note that some investors who held shares in the affected funds during the applicable time period for that fund may not meet the criteria to receive distributions pursuant to the Distribution Plan approved by the SEC. Any investor's qualification to receive a distribution, and the amount of the distribution, if any, depended on the pattern of timing transactions that occurred while the investor held shares of the affected funds, the investor's own pattern of trading during the period in which the timing transactions occurred, the size of the investor's holdings as a percentage of total fund assets, and a variety of other considerations that also rely on information that is not in the public domain. It is therefore, as a practical matter, impossible for any individual investor to be able to estimate whether they would qualify for a distribution and the amount of the distribution for which they would qualify.

13. How will this settlement affect my tax reporting?

    You can refer to the Tax Information page on this website to obtain tax information related to this settlement. However, you should consult with your tax professional to discuss the tax implications specific to your situation.

14. Are shareholders allowed to object to the terms of the settlement?

    All persons desiring to comment on the Distribution Plan were required to submit their views, in writing, no later than July 6, 2007, to the SEC. The operation of the Distribution Plan was submitted for public comment by the SEC, which carefully considered any public responses to the Plan before it was approved.

    The Distribution Plan was approved on May 9, 2008

15. What happens to the money that is not claimed by eligible shareholders?

    Approximately four months after the checks are distributed, any unclaimed funds will be deposited into the mutual funds covered by the settlement in the same ratio as the profits that were earned by the timers who transacted in each of those funds

16. Who should I contact if:
    1. I have additional questions about the settlement?
    2. I believe I should have received a distribution check?
    3. I disagree with the amount of the distribution check I received?

    You can call the Fund Administrator at one of the toll-free numbers listed on the Contact Information page on this website.

    You can also put your concerns in writing, along with any supporting documentation, and send them to the Fund Administrator at the following address:

    Franklin Advisers Settlement Administration
    C/O Boston Financial Data Services
    PO Box 859235
    Braintree, MA 02185-9235

    Please note that the Fund Administrator cannot return your supporting documentation.

17. What is the role of the Independent Distribution Consultant?

    The role of the Independent Distribution Consultant (or IDC) is to develop the Distribution Plan for allocation of the $50 million settlement, plus accrued interest, provided for in the SEC Order (please refer to the Links to Related Documents page on this website). This includes:

    • an explanation of the methodology used to calculate the payments to eligible shareholders,
    • the procedures for locating eligible shareholders, and
    • the procedures for distributing the proceeds and interest to eligible shareholders.

18. What if I have a special circumstance and need to change the payee on my check? (Examples include but are not limited to: the account is registered to a Joint Tenant who is deceased, the Trustee on the account is deceased/incapacitated, a corporation that no longer exists).

    Please contact the Settlement Administrator at 1-866-700-0127 to discuss your special circumstance and receive instructions about required documentation.