Manulife Financial Corp. and its subsidiaries, including John Hancock, settled with the Securities and Exchange Commission Tuesday for nearly $19 million for allegedly using mutual fund assets to pay brokers for preferred treatment, regulators said, according to The Wall Street Journal.
The subsidiaries agreed in an administrative settlement filed today at the Boston SEC office to return some $19 million to mutual funds, the SEC said. The companies did not admit or deny wrongdoing in the settlement, the paper reported.
The SEC said Manulife and Hancock used assets from mutual funds to pay brokers in "revenue sharing" agreements between 2001 and 2004 without properly disclosing these payments to the independent boards set up to oversee the funds, the paper reported.
-New York State Society of Certified Public Accountants
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