10:26 AM EDT, 08/21/2024 (MT Newswires) -- Franklin Resources' ( BEN ) Western Asset Management said Wednesday that co-Chief Investment Officer Ken Leech is taking an immediate leave of absence amid internal and external probes into past trade allocations.

Western Asset previously launched an internal investigation into the trade allocations, which involved treasury derivatives in select Western Asset-managed accounts, and the company said it is also cooperating with a parallel government probe into the matter.

Recently, Leech received a Wells Notice from the US Securities and Exchange Commission, the company said, adding that it will take action based on the findings of its investigation.

Western Asset also announced that Michael Buchanan has been appointed as chief investment officer. Buchanan had served as co-CIO alongside Leech.

Shares of Franklin Resources ( BEN ) were down nearly 4% in recent trading.

Price: 21.81, Change: -0.81, Percent Change: -3.58