In an announcement, John Hancock said the warranty gives assurance that the company’s investment selection and monitoring process satisfies the prudence rules of the Employee Retirement Income Security Act (ERISA). Under the warranty, the company promises to restore plan losses and pay litigation costs related to the suitability of this process or its investment lineup.
Additionally, financial representatives are receive enhanced online fund selection and reporting tools – i:evaluator and i:reports – that easily select an investment lineup eligible for the warranty or determine if the warranty extends to an existing selection, according to the announcement.
Plans that offer at least one investment option from the designated asset classes and the lifestyle portfolios covering five risk categories will automatically qualify for the John Hancock Fiduciary Standards Warranty. The warranty applies to all funds in the John Hancock lineup, not just those managed by John Hancock, and it covers all current and new clients who meet the investment option requirement.
For more information, contact John Hancock.