John Hancock Personal Financial Services, Llc

Allegations: THE MANUFACTURERS LIFE INSURANCE COMPANY ALLOWED RESTRICTED AGENTS TO ACT WHILE NOT HOLDING A VALID CERTIFICATE OF AUTHORITY CONTRARY TO SECTION 452(5) OF THE INSURANCE ACT (ALBERTA) AND COMPENSATING AN UNLICENSED RESTRICTED INSURANCE AGENT CONTRARY TO THE PROVISIONS OF SECTION 499(1) OF THE INSURANCE ACT (ALBERTA). Status: Final Sanction Detail: THE ALBERTA TREASURY BOARD AND FINANCE ISSUED AN ADMINISTRATIVE PENALTY OF $5,000 CAD AGAINST THE MANUFACTURERS LIFE INSURANCE COMPANY. THE $5,000 CAD ADMINISTRATIVE PENALTY WAS PAID ON FEBRUARY 2, 2018. Summary: THE MANUFACTURERS LIFE INSURANCE COMPANY ALLOWED RESTRICTED AGENTS TO ACT WHILE NOT HOLDING A VALID CERTIFICATE OF AUTHORITY CONTRARY TO SECTION 452(5) OF THE INSURANCE ACT (ALBERTA) AND COMPENSATING AN UNLICENSED RESTRICTED INSURANCE AGENT CONTRARY TO THE PROVISIONS OF SECTION 499(1) OF THE INSURANCE ACT (ALBERTA). AS A RESULT OF THE NONCOMPLIANCE, THE MANUFACTURERS LIFE INSURANCE COMPANY HAS BEEN ISSUED AN ADMINISTRATIVE PENALTY OF $5,000 CAD BY ALBERTA TREASURY BOARD AND FINANCE.

Allegations: THE MANUFACTURERS LIFE INSURANCE COMPANY DISTRIBUTED HOSPITAL INSURANCE POLICIES TO SEARS CUSTOMERS THROUGH PERSONS WHO WERE NOT LICENSED WITH THE AUTORITE DES MARCHES FINANCIERS FOR THIS PURPOSE, THUS CONTRAVENING SECTIONS 461,462,470 AND 491 OF THE ACT RESPECTING THE DISTRIBUTION OF FINANCIAL PRODUCTS AND SERVICES AS WELL AS SECTION 406.1 OF THE ACT RESPECTING INSURANCE. Status: Final Sanction Detail: THE AUTORITE DES MARCHES FINANCIERS ISSUED AN ADMINISTRATIVE PENALTY OF $350,000 CAD AGAINST THE MANUFACTURERS LIFE INSURANCE COMPANY. THE $350,000 CAD ADMINISTRATIVE PENALTY WAS PAID ON FEBRUARY 12, 2018. Summary: THE MANUFACTURERS LIFE INSURANCE COMPANY DISTRIBUTED HOSPITAL INSURANCE POLICIES TO SEARS CUSTOMERS THROUGH PERSONS WHO WERE NOT LICENSED WITH THE AUTORITE DES MARCHES FINANCIERS FOR THIS PURPOSE, THUS CONTRAVENING SECTIONS 461,462,470 AND 491 OF THE ACT RESPECTING THE DISTRIBUTION OF FINANCIAL PRODUCTS AND SERVICES AS WELL AS SECTION 406.1 OF THE ACT RESPECTING INSURANCE. THE MANUFACTURERS LIFE INSURANCE COMPANY AGREES TO PAY THE AUTORITE DES MARCHES, UPON EXECUTION OF THE AGREEMENT, THE AMOUNT OF $350,000 CAD AS ADMINISTRATIVE PENALTY FOR NOT HAVING FOLLOWED SOUND COMMERCIAL PRACTICES DURING THE COURSE OF THE DISTRIBUTION OF THE SEARS HOSPITAL PLAN.

Allegations: FAILURE TO ADVISE THE SUPERINTENDENT THAT THE PLAN ADMINISTER DID NOT PROVIDE THE MANUFACTURER'S LIFE INSURANCE COMPANY WITH A SUMMARY OF CONTRIBUTIONS (FORM 7) AS REQUIRED BY THE PENSION BENEFITS ACT FOR THE 2010 YEAR WITHIN THE TIME PRESCRIBED. Status: Final Sanction Detail: $50,000 FINE Summary: ON JULY 4,2012, THE FINANCIAL SERVICES COMMISSION FOR ONTARIO (FSCO) CHARGED MLI WITH TWO COUNTS OF FAILING (AS TRUSTEE OF THE RETIREMENT PENSION PLAN FOR THE HALEY PLAN HOURLY EMPLOYEES OF TIMMINCO METALS, A DIVISION OF TIMMINCO LIMITED) TO NOTIFY THE SUPERINTENDENT OF FINANCIAL SERVICES FOR ONTARIO THAT THE EMPLOYER FAILED TO FILE A SUMMARY OF CONTRIBUTIONS. ON MAY 9, 2013, MLI PLEAD GUILTY TO ONE COUNT OF FAILING TO REPORT THE NON-FILING OF A SUMMARY OF CONTRIBUTIONS. THE ONTARIO COURT ADOPTED THE PARTIES JOINT SUBMISSION ON THE PENALTY AND IMPOSED A TOTAL FINE OF $50,000.

Allegations: ON APRIL 22, 2014 THE ALBERTA SUPERINTENDENT OF INSURANCE ISSUES A FINE OF $5000.00 AFTER REACHING A DETERMINATION THAT MANULIFE CONTRAVENED SECTIONS 452(5) (INSURANCE AGENT'S CERTIFICATE) AND 499(1) (DEALING WITH UNAUTHORIZED INSURANCE AGENTS) OF THE ALBERTA INSURANCE ACT BY ALLOWING AN ADVISOR, CONTRACTED THROUGH IG INSURANCE SERVICES INC, TO ACT AS AN INSURANCE AGENT AND PAYING COMMISSIONS FOR A PERIOD BETWEEN FEBRUARY 16, 2009 AND SEPTEMBER 12, 2011 WHEN HE WAS NOT AUTHORIZED TO CONDUCT INSURANCE BUSINESS UNDER THE ACT (LICENSE LAPSED). Status: Final Sanction Detail: PENALTY OF CAD$5000.00 AFTER REACHING A DETERMINATION THAT MLI CONTRAVENED SECTIONS 452(5) AND 499(1) OF THE ALBERTA INSURANCE ACT. Summary: A RESPONSE WAS SENT TO THE SUPERINTENDENT OF INSURANCE ON JUNE 23, 2014 EXPLAINING THE VALIDATION PROCEDURES PUT IN PLACE TO AVOID FUTURE VIOLATIONS INCLUDING (1) WORKING WITH OUR MANAGING GENERAL AGENCIES (MGA) AND NATIONAL ACCOUNT CHANNELS (DISTRIBUTORS) WHO ARE LICENSED ENTITIES HOLDING DISTRIBUTION AGREEMENTS WITH MLI TO CONFIRM THEIR ADHERENCE TO THE AGENT SCREENING AND ONGOING MONITORING DUTIES WHICH THEY ARE CONTRACTUALLY OBLIGATED TO CARRY OUT ON OUR BEHALF (2) CONTINUING TO COMPLETE LICENSE REVIEWS FOLLOWING THE RENEWAL PERIOD IN ALBERTA USING THE SPREADSHEETS ON THE ALBERTA INSURANCE COUNCIL WEBSITE AND (3) CONTINUING TO INCLUDE THE REQUIREMENT FOR AGENTS TO CERTIFY THEY ARE LICENSED AND IN GOOD STANDING ON ALL INSURANCE APPLICATION FORMS.

Allegations: ON FEBRUARY 28, 2014, MANULIFE FINANCIAL CORPORATION ("MFC"), THE MANUFACTURERS LIFE INSURANCE COMPANY ("MLI") AND BENESURE CANADA INC. CONSENTED TO THE TERMS OF AN ORDER ISSUED BY THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS COMMISSION OF BRITISH COLUMBIA RELATING TO AN INVESTIGATION OF PRACTICES AND PROCEDURES WITH RESPECT TO THE SALE OF CREDITOR'S GROUP INSURANCE IN BRITISH COLUMBIA THROUGH MORTGAGE BROKERS UNDER THE INSURANCE LICENSING EXEMPTIONS REGULATION. THE COMPANIES WERE DETERMINED TO BE IN CONTRAVENTION OF CERTAIN SECTIONS OF THE REGULATIONS. Status: Final Sanction Detail: $150,000 (CDN) AND TOTAL INVESTIGATION COSTS OF $31,151.92 (CDN) Summary: ON FEBRUARY 28, 2014, MANULIFE FINANCIAL CORPORATION ("MFC"), THE MANUFACTURERS LIFE INSURANCE COMPANY ("MLI") AND BENESURE CANADA INC. CONSENTED TO THE TERMS OF AN ORDER ISSUED BY THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS COMMISSION OF BRITISH COLUMBIA RELATING TO AN INVESTIGATION OF PRACTICES AND PROCEDURES WITH RESPECT TO THE SALE OF CREDITOR'S GROUP INSURANCE IN BRITISH COLUMBIA THROUGH MORTGAGE BROKERS UNDER THE INSURANCE LICENSING EXEMPTIONS REGULATION. THE COMPANIES WERE DETERMINED TO BE IN CONTRAVENTION OF CERTAIN SECTIONS OF THE REGULATIONS AND WILL EACH PAY WITHIN 30 DAYS OF THE DATE OF THE ORDER AN ADMINISTRATIVE PENALTY OF $50,000 (TOTAL OF $150,000) AND TOTAL INVESTIGATION COSTS OF $31,151.92 IN ADDITION TO WAIVING THE RIGHT TO APPEAL.