Putnam also said that Barry P. Barbash, a former director of the SEC’s Division of Investment Management, has been engaged by MMC “to conduct an independent review of Putnam’s policies and controls and make recommendations to assure that the company operates in accordance with the highest professional and ethical standards.”
On October 28, the SEC and the Commonwealth of Massachusetts initiated administrative proceedings against Putnam Investments and two employees in connection with alleged market timing activities. According to press reports, certain public pension funds, including Massachusetts, Vermont and Rhode Island, have fired Putnam since the charges were filed.
In response to allegations of market-timing and trading scandal at Putnam, MMC’s chairman Jeffrey W. Greenberg stated in a press release “We are taking actions today to address the issues that are confronting Putnam. The kind of conduct that occurred has no place at Putnam. We are taking measures to see that this does not happen again. We have previously stated that Putnam will make complete restitution to the Putnam funds for any losses suffered by Putnam shareholders as a result of any improper market-timing activities.”