UPDATE 2-Canada's Manulife receives enforcement notice

Fri Jun 19, 2009 7:10pm EDT
 
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* Notice from Ontario Securities Commission regulators

* OSC found failure to meet certain disclosure obligations

* Rubenovitch retiring as CFO, Michael Bell taking over

* Two announcements unrelated (Adds company being investigated by the Ontario Securities Commission, changes dateline from TORONTO)

LOS ANGELES, June 19 (Reuters) - Canadian insurer Manulife Financial (MFC.TO) on Friday said it received an enforcement notice from the Ontario Securities Commission that found the company failed to meet certain disclosure obligations in its segregated funds and variable annuity guaranteed products.

The insurer said the preliminary finding relates to its disclosure before March of this year of risks related to its variable annuity guarantee and segregated funds business.

Manulife has the opportunity to respond to the OSC's notice before the commission's staff makes a decision on whether to begin proceedings, it said in a statement, adding that it intents to cooperate with the agency.

The insurer also said it believes that its disclosure satisfied applicable requirements.

Earlier on Friday, Manulife said Chief Financial Officer Peter Rubenovitch was retiring after 14 years with the company.

Michael Bell, executive vice-president and CFO at Cigna Corp (CI.N) for the past six years, will take over as chief financial officer in July.

Bell will join Manulife next week and take on his new duties in July.

The move marks the second change to Manulife's senior management this year. Long-standing Chief Executive Dominic D'Alessandro retired and was succeeded by Donald Guloien.

Manulife said its statement about the OSC enforcement was unrelated to the announcement it made earlier in the day. (Reporting by Nichola Groom, Frank Pingue; editing by Rob Wilson, Gary Hill)

 

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