Franklin Templeton, the US mutual fund manager, has been accused of fraud by William Galvin, the Massachusetts state regulator, who claims the firm made false statements in a filing with US regulators related to a market-timing settlement.

Galvin's complaint rests on a filing with the Securities and Exchange Commission, the US regulator, in which Franklin claimed it "did not admit or deny engaging in any wrongdoing," despite reaching a $5m settlement over the allegations against it with regulators.