Investor Presentaiton

The CSA also formulated plans in 2004 to reform the registration procedures by reviewing all of the relevant legislative and regulatory provisions and examining the possibility of widening the registration requirement to include mutual fund managers. This obligation would allow the authorities to check the managers' backgrounds and to ensure that the company has sufficient resources to fulfill its obligations to investors and to reimburse them should these obligations not be met. Lastly, the CSA has proposed regulation 81-1076 aimed at improving the governance of investment funds by putting them under the control of an independent review committee (IRC). The committee would be composed of a minimum of three independent directors and would serve the investors' interests. It would ensure that the management company acts in the investors' interests, notably by avoiding conflicts of interest. The proposal also establishes the management company's obligations should conflicts of interest arise. The proposed regulation 81-107 is expected to enter into force in Québec and the rest of Canada sometime in 2006. 6 The proposed regulation 81-107 was published for commentary on two occasions, namely in January 2004 and in May 2005. The CSAs' previous proposition was 81-404, in March 2002. [http://www.cvmq.com/Upload/fichier_pdf/norme/81-107fr_cons.pdf]. Available in French only. Consultation paper Page 7

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