Company: FGDL
Filing Date: 2025-08-26
Form Type: POS AM
Source: 0001137439-25-001038
Chunk: 35

Company: Franklin Templeton Holdings Trust
Filing Date: 2025-08-26
Form: POS AM
Chunk 35
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, the Audit Guidance provides that the auditing body may not provide services for the refiner related to the design, establishment or implementation of the refiner’s precious metals supply chain practice for a period of at least 24 months prior to the engagement. Additionally, the auditor must have adequate organizational capacities and a robust system of quality control, including with respect to the minimum requirements for independence, conflicts of interest, ethics and audit quality control reviews and the capacity to process appeals and/or handle complaints. In addition, auditors are required to disclose in their application forms their quality assurance and conflicts of interest policies, and explain how they comply with the various core principles, which include ethical conduct, due professional care, independence and integrity. Where any of these aspects no longer satisfy applicable requirements, the auditor is removed from the Approved Auditors List. Auditor accreditation and performance are reviewed on an annual basis to ensure approved auditors continue to meet LBMA requirements. Compliance with the LBMA’s responsible sourcing standards is required for access to the Loco London market. Accordingly, loss of LBMA accreditation entails significant commercial consequences for refiners. The LBMA enforces compliance through its audit process as well as whistleblower and media reporting, which can result in initiation of a formal incident review inquiry or special audit, as described further below. Good Delivery refiners found to be applying the Programme in good faith, but that have not met a satisfactory standard in some respects, will generally be given a reasonable opportunity to raise their standards to the required level. Loss of accreditation is imposed where there have been failures that cannot be remediated or if attempts at remediation have been significantly poor. The LBMA also conducts targeted “Special Audits” arising out of:

| • | queries resulting from country of origin data reported confidentially to LBMA; |

| • | media allegations; |

| • | whistleblowing; |

| • | part of an incident review process. |

Under a Special Audit, LBMA selects the auditor, who is independent of the original auditor. Environmental, Social and Governance (“ESG”) Metric Adherence Under the Gold Guidance, a refiner’s due diligence for its supply chain must include a policy that extends to ESG requirements. Specifically, refiners are directed to strengthen ESG engagement with gold-supplying counterparties and, where possible, assist gold-supply counterparties build due diligence capacities. In addition, the Gold Guidance requires refiners to assess the risk in the supply chain, which includes assessing the environmental policies and practices of the producers, both in relation to artisan