National investment fraud lawyers KlaymanToskes issues an important notice to Franklin Square Energy & Power Fund (FSEP) investors after its NAV per share hit $2.60, representing a 74% decrease from its initial offering of $10 per share. KlaymanToskes is currently conducting an investigation of brokerage firms and financial advisors that recommended the non-traded business development company (BDC) causing investor losses.
Investors who suffered losses as a result of being recommended Franklin Square Energy & Power Fund by their broker/financial adviser are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss recovery options. We offer legal services on a contingency fee basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Franklin Square Energy & Power Fund (FSEP) is a publicly registered, non-traded business development company sponsored by FS Investments. The company’s recent 8-K SEC filing states that on December 30th, 2022, the board of trustees of FS Energy and Power Fund declared a cash distribution of $0.03.
As of March 21st, 2023, FSEP’s NAV per share is currently $2.60, representing a 74% decrease from its initial offering of $10 per share. According to its website, FSEP’s cumulative total return since inception (with sales charge) is -12.26%. FSEP’s reasoning for the decreases was to ensure that the company did not issue shares under the dividend reinvestment plan (“DRP”) at a price per share that was more than 2.5% greater than the NAV Per Share.
FSEP’s website also states that “As of March 17, 2020, FS/EIG and FSEP’s board of trustees has suspended the share repurchase program and will assess the ability to recommence the quarterly tender in the future based on market conditions and the fund’s operations.” Since 2020, FSEP’s share repurchase program (“SRP”) has remained suspended, with the company stating global market events impacted “the financial markets and significantly disrupted U.S. and global economies, including energy markets.”
In its “risk factors disclosure” FS Investments states that “FSEP is a long-term investment for persons of adequate financial means who have no need for liquidity in their investment.” In its initial offering, investors were required to have a net worth of at least $70,000 and an annual gross income of at least $70,000 or a net worth of at least $250,000.
According to securities attorney Lawrence L. Klayman, “Brokerage firms and their registered financial professionals have a duty to recommend suitable investments to their customers. The failure to consider an investor’s age, net worth, investment objectives, risk tolerance, and other important factors when making a recommendation is a basis for liability in a FINRA arbitration claim.”
The brokers and financial advisors who sold Franklin Square Energy & Power Fund may be liable for losses incurred by investors.
If you suffered losses as a result of being recommended Franklin Square Energy & Power Fund by your broker/financial advisor, you are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss recovery options.
We offer legal services on a contingency fee basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com