LAWSUITS NEWS & LEGAL INFORMATION
John Hancock
Boston, MA: (Jun-25-07) The US Securities and Exchange Commission brought charges against Boston-based John Hancock and its investment advisory and brokerage arms, alleging that they failed to inform investors and board members of certain revenue sharing and directed brokerage deals. According to the SEC, John Hancock did not disclose using fund assets to compensate brokers for promoting sales of John Hancock products, including variable annuities and mutual funds. The SEC said brokers were sometimes paid through brokerage commissions on trading directed their way, with John Hancock directing $14.8 million of such commissions to 55 broker dealers.
In a settlement reached, John Hancock's investment advisory and brokerage arms will pay more than $21 million, including a $2 million fine, to resolve Securities and Exchange Commission charges. John Hancock was acquired by Toronto-based Manulife Financial Corp. in April 2004. Under the settlement, John Hancock Management and John Hancock Distributors will return $16.8 million of allegedly ill-gotten gains, plus interest, which will be split among dozens of John Hancock funds. John Hancock Advisers and John Hancock Funds will return more than $2.3 million, including interest, to be split by nearly two dozen funds. In addition, John Hancock Management, John Hancock Distributors, John Hancock Advisers and John Hancock Funds each will pay a $500,000 fine. [FORBES: REVENUE SHARING]
Published on Jun-26-07
In a settlement reached, John Hancock's investment advisory and brokerage arms will pay more than $21 million, including a $2 million fine, to resolve Securities and Exchange Commission charges. John Hancock was acquired by Toronto-based Manulife Financial Corp. in April 2004. Under the settlement, John Hancock Management and John Hancock Distributors will return $16.8 million of allegedly ill-gotten gains, plus interest, which will be split among dozens of John Hancock funds. John Hancock Advisers and John Hancock Funds will return more than $2.3 million, including interest, to be split by nearly two dozen funds. In addition, John Hancock Management, John Hancock Distributors, John Hancock Advisers and John Hancock Funds each will pay a $500,000 fine. [FORBES: REVENUE SHARING]
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