Manulife US REIT - Sustainability Report 2018

Regulatory Compliance The REIT industry is a highly regulated sector and as such the Manager and its Board and management come together to act in the best interests of Unitholders to ensure compliance with local and foreign laws and regulations. Non-compliance with such requirements are likely to lead to financial penalties as well as reputational risks and damages. As MUST is listed on the SGX and the Manager is licensed by the Monetary Authority of Singapore, we are required to comply with a range of rules and regulations; specific policies and procedures (as shown on page 74) are instituted to ensure that MUST adheres to the various regulatory and operational requirements. In addition, the Manager as a subsidiary of Manulife Group is also subject to certain Group- wide policies and procedures. The Manager aligns its corporate governance to the high standards expected of the Sponsor, a Securities and Exchange Commission registered company. The Manager’s compliance team works closely with Manulife Group’s legal and compliance teams and together with external legal counsel in Singapore and U.S., to ensure that MUST and the Manager operate within its regulatory ambit. Details on corporate governance can be found on page 78 of MUST’s annual report. As at 31 December 2018, eight out of 17 full-time employees of the Manager are registered representatives of the Manager under the Securities and Futures Act (SFA) of Singapore. The representatives are responsible for functions ranging from management, investment, finance to investor relations. The representatives attended regular trainings to ensure that they are kept abreast of market regulations. The compliance team reviews all marketing materials to ensure adherence to relevant rules and regulations and that information presented therein are not misleading to stakeholders. Mandatory and voluntary trainings are provided to all employees to ensure that they comprehend what is expected of them and their reporting obligations. New hires are subject to mandatory orientation and induction programmes. On top of that, the compliance team also provides regular updates to the Board and employees on regulatory and internal requirements. The Property Manager has a compliance team to manage compliance matters at the property level. For our tenants, the Property Manager conducts regular education sessions and tenant engagement meetings where a range of issues can be raised. Grievance mechanisms such as feedback channels, anonymous hotlines and whistle-blowing channels are made available to all other stakeholders. To manage compliance risk, the compliance team is actively involved and consulted on all business activities, from concept to execution. Periodic submission of data to respective regulators and application and review of licences are also tracked. The internal audit team reviews processes and procedures, and the Manager follows an established and comprehensive enterprise risk management framework where regular reports are submitted to the Board. As a testament to our robust compliance policies and procedures, MUST was selected by SGX to be placed on its inaugural Fast Track programme in April 2018. As an SGX Fast Track entity, MUST is recognised for its high corporate governance standards and good compliance track record. Companies in the programme enjoy prioritised clearance for selected corporate action submissions to SGX RegCo. MANULIFE US REIT 73 ETHICAL CORPORATE BEHAVIOUR