The Ontario Securities Commission is investigating Manulife Financial Corp. over what the company told investors about the risks of its guaranteed fund business, Manulife said Friday.

The company that it received an enforcement notice from staff “relating to its disclosure before March 2009 of risks related to its variable annuity guarantee and segregated funds business.”

“The OSC notice indicates that it is the preliminary conclusion of OSC staff that the company failed to meet its continuous disclosure obligations related to its exposure to market price risk in its segregated funds and variable annuity guaranteed products,” Manulife said.

Manulife has the opportunity to respond to the notice before OSC staff makes a decision whether to commence proceedings.

Manulife “intends to cooperate with OSC staff,” it said adding that it “believes that its disclosure satisfied applicable disclosure requirements.”

IE