Franklin Resources Inc. plans to combine parts of its Western Asset Management Co. (Wamco) unit as the company deals with an investigation by the Securities and Exchange Commission related to its bond manager, Ken Leech.

The integration will involve merging Wamco's middle office operations into the broader Franklin organization. Franklin CEO Jenny Johnson and Wamco CEO Jim Hirschmann announced the changes to employees during a recent town hall meeting.

The goal of the integration is to streamline operations in the face of ongoing challenges, including significant outflows impacting the bond management unit.