Relationship Disclosure Information

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1 Relationship Disclosure Information ASSANTE CAPITAL MANAGEMENT LTD. THANK YOU FOR CHOOSING ASSANTE CAPITAL MANAGEMENT LTD. AND WELCOME Occasionally, we make major decisions that will have a profound impact on the way we live our lives. Your decision to acquire professional advice through Assante Capital Management Ltd. ( Assante ), a leader in integrated wealth management, falls into this category. You can feel secure knowing you have made the right choice. Soon, you will be among a long list of satisfied clients, who enjoy peace of mind knowing their portfolios are in the capable hands of their Assante Advisors. In time, you will no doubt look back on this day and regard your decision to choose Assante as one of the wisest you have ever made. ADVISORY RELATIONSHIP What you can expect from us (Service Level Provided) We promise to handle your financial affairs with the utmost integrity, respect and professionalism exactly the kind of treatment you expect from a leader in the industry. As an Assante client, you will benefit from the highest standards of ethical practices. After creating a plan to meet your personal goals and objectives, we will help you adhere to it. At all times you will be kept updated about your portfolio, its performance and its progress. Your Assante New Account Application Form (Why Know-Your-Client ( KYC ) Information is Required) In choosing Assante as your financial partner, you have already taken the all-important first step. In a follow-up document, we will ask that you answer a series of questions that will help us understand who you are, where you are now and where you want to go. It is important that you answer each question as completely and accurately as possible. The information gathered will allow us to develop a strategy that will move you steadily toward your goals, while meeting your individual needs and preferences. Why so many questions? As a professional financial services company, we want to maintain a high commitment to our regulators, including the provincial and federal governments, provincial securities commissions, and several self-regulatory organizations. Through these questions our Advisors are ensuring that we understand your financial and personal status and aspirations. Rest assured we are committed to and bound by our comprehensive internal privacy policy and applicable privacy legislation. All the information you provide is held in complete confidence. The sole purpose of the questionnaire is to help us do the job you expect from us. Your Advisor will provide you a copy of the New Account Application Form ( NAAF ) and any other Assante documentation required to open and service your account. CLIENT REPORTING We provide you with trade confirmations and account statements to affirm with you that your Advisor is following your instruction. Assante provides you with a trade confirmation each time your Advisor executes a transaction on your account.* The trade confirmation is mailed to you by Assante and includes, at a minimum, the account number, name of investment product, quantity, trade date and price. In addition to trade confirmations, account statements are provided to you that list your investments held through Assante. These account statements include the purchase price, current price and current market value of your investments held through Assante. You receive an account statement monthly, where there is account activity and no less than quarterly, if no activity. Alternatively, you may choose to receive this documentation electronically by registering with Assante InvestorOnline. For information on Assante InvestorOnline, please speak with your Advisor or contact the Assante Service Centre at * Assante may outsource the production and mailing of a trade confirmation to a third party. ASSANTE CAPITAL MANAGEMENT Relationship Disclosure Information 1 of 8

2 Get going on reaching your goals Once again, we welcome you to Assante. We say with confidence that today is the beginning of what will be a long and rewarding relationship. The sooner you provide us with a completed NAAF, the sooner we can get to work taking care of your financial future and the sooner you can begin to enjoy the many rewards of becoming an Assante client. Hours of Operation and Order Handling for Stocks and Bonds For a complete listing of our hours of operation for our securities trade desk and order handling procedures for stock and bond trades, please refer to our website for the most up to date information at: (please go to Solutions & Services, then select Investment Solutions, then select click here under Trade Desk). Business Continuity Assante Head Office has a business continuity plan to help us to continue to serve you where there is a business interruption owing to an unforeseen event (e.g., power outage, fire, flood, etc.). It is a regulatory requirement for Assante to have such a plan and this plan is tested annually. THINGS YOU SHOULD KNOW Assante is an indirect wholly-owned subsidiary of CI Financial Corp. ( CI ). The principal business of CI is the management, marketing, distribution and administration of mutual funds, segregated funds and other fee-earning investment products for Canadian investors through its wholly-owned subsidiary, CI Investments Inc ( CII ). In addition, through its money management subsidiaries, CI manages institutional assets for clients on a global basis. CI is a public company whose securities are listed on The Toronto Stock Exchange. A number of its securities are held by the employees and advisors who work within Assante and other members of the CI organization. The United Financial Benefit With Assante your advisor has exclusive access to the customized United Financial brand of solutions managed by CII, these include: Private Client Managed Portfolios ( PCMP ), is a private wealth management service. For high net worth clients with more complex wealth planning needs, we offer our exclusive PCMP through the United Financial division of CI Private Counsel LP. Evolution Private Managed Accounts ( Evolution ), is an innovative program designed to meet the complex investment needs of sophisticated investors. The program offers customized portfolios based on actively managed strategic asset allocation, a broad selection of leading portfolio managers, a tax-efficient structure, as well as the choice of geographic emphasis, investment style and currency-neutral mandates. Evolution is designed for households in excess of $250,000. Optima Strategy, is a customized asset management and tax optimization service utilizing the United Pools mutual funds designed for households with accounts in excess of $100,000. The underlying United Pools are available separately as mutual fund investments (collectively, Optima Strategy ). Subject to limited exceptions, PCMP, Evolution and Optima Strategy products and services are only available through Assante and certain of its affiliated firms. In the future, should you become a client of a dealer that is not Assante Capital Management Ltd. please note that PCMP, Evolution and Optima Strategy may not be transferred in-kind to another dealer. For a complete listing of individual CI products, please visit Risks and Fees If you decide to invest in PCMP, Evolution and/or Optima Strategy products or services, CII will earn ongoing asset management fees in accordance with the applicable Investment Counsel Agreement, Fund Facts or other offering document. In addition, if you invest in CI products, CI will, through its ownership of other affiliates, profit from ongoing asset management fees in accordance with the applicable Fund Facts or other offering document. Accordingly, to the extent that your Advisor owns securities of CI, he or she will benefit from these fees. You should confirm whether your Advisor is a security holder of CI. A copy of the fee schedule will be provided to you at the time of account opening regarding the operation of your account, in addition a description of all charges you will or may incur while purchasing, disposing, and holding of your investments. We do not accept deposits of cash. Your Advisor may only accept cheques payable to Assante Capital Management Ltd. ASSANTE COMPENSATION Assante receives compensation from a number of sources. These sources include: w the sale of new investment products such as Guaranteed Investment Certificates ( GICs ) or Deposit Notes; w commissions charged on the sale of mutual funds and ongoing commission (trailer fees) for as long as a client holds the mutual fund; ASSANTE CAPITAL MANAGEMENT Relationship Disclosure Information 2 of 8

3 w referral fees generated where your Advisor refers you to an approved third party referral partner; w financial planning fees where your Advisor offers this service through Assante; and w fees charged by your Advisor to you for a fee-based account Mutual Fund Charges Mutual fund products are offered through different mutual fund companies and there is a range of fees and commission payable, depending on the choice of product/sales charge option selected. The following is a summary of the types of fees and commissions: w Management Expense Ratio ( MER ) The MER is the total management cost (fees and expenses) charged by a fund manager for ongoing management of the fund. This cost is deducted by the fund directly. It is expressed as a percentage of fund assets and is not billed to the investor directly. w Front-End Load Commission ( FEL ) Funds sold on an FEL basis allow for the deduction of a percentage of commission from the gross investment amount at the time of purchase, as agreed upon between you and your Advisor. This one-time commission is deducted by the mutual fund company and paid to Assante, who then pays a portion of it to your Advisor. w Deferred Sales Charge Commission ( DSC ) Funds sold on a DSC basis require no commission deduction from your investment at the time of purchase. Commission is paid by the fund company to Assante and Assante in turn pays a portion of it to your Advisor. If the funds are redeemed within a specified period (usually before 5 to 8 years of purchase, depending on the fund), the mutual fund company may charge you a pro-rated redemption fee. w Trailing Commission/Service Fee Mutual fund companies pay trailing commissions, quarterly, to Assante and your Advisor for servicing your investment account. Advisor compensation may vary, depending upon choice of investment product(s). The mutual fund s Fund Facts document contains a detailed explanation as to how fees are calculated and deducted. We encourage you to review the Fund Facts document. The Fund Fact is a 2-4 page summary disclosure document required to be filed by all mutual fund companies in addition to other disclosure documents such as the Simplified Prospectus for each class or series of a mutual fund. Your Advisor must provide to you the Fund Fact document. If you wish to receive the Simplified Prospectus in addition to the Fund Fact document, please ask your Advisor. The Fund Fact document highlights key information about the mutual fund class or series such as the underlying investments, performance history, risk assessment, suitability, and costs associated with the mutual fund (sales fees, MERs, trading fees, etc.). This valuable information will help you make an informed decision regarding the selection of mutual fund investments that are best suited for your financial goals. Fees or charges may be assessed by the product manufacturer depending on the product. Advisors are required to disclose ALL material fees or charges that may relate to an order prior to placing the order. If you have questions, please contact your Advisor. Assante provides further opportunities through our relationship with National Bank Independent Network as a carrying broker to offer order execution for stocks and bonds. For a full listing of all order execution fees and commissions, please consult with your Advisor. Advisors must ensure that the recommendations made to clients are suitable in light of their personal circumstances. Your Advisor has a responsibility to you to ensure the ongoing suitability of any managed account services provided. Please remember that all investments involve a degree of risk. Specifically, there is no assurance that your investment will increase in value. You should discuss with your Advisor the risk associated with your investment choices. Regardless of the investment product or service you select, ensure you are fully aware of the associated fees and expenses. Finally, it is important that, throughout our relationship, you provide complete and accurate details of your financial situation to your Advisor in order to obtain the best possible advice for your individual needs. In order to maintain the quality of our recommendations, subsequent material changes to this information should also be brought to the attention of your Advisor on a timely basis. If you have any questions, please contact your Advisor. Alternatively, you may contact our Assante Service Centre at PERFORMANCE BENCHMARKS AND HOW TO USE THEM You may assess the performance of your investments by comparing them to an investment performance benchmark. Benchmarks show the performance over time of a select group of securities. There are many different benchmarks. When choosing a benchmark, pick one that reflects your investments. For example, the S&P/TSX Composite Index follows the share prices of the largest companies listed on the Toronto Stock Exchange. This index would be a good benchmark for assessing performance of a Canadian equity fund that invests only in large Canadian companies. It would be a poor benchmark if your investments are diversified in other products, sectors or geographic areas. We do not provide benchmark comparisons in your account statements. Please speak to your Advisor if you have questions about the performance of your portfolio or what benchmark(s) might be appropriate for you. ASSANTE CAPITAL MANAGEMENT Relationship Disclosure Information 3 of 8

4 DEFINITIONS OF INVESTMENT OBJECTIVES, RISK TOLERANCE AND TIME HORIZON INVESTMENT OBJECTIVES DEFINED Income An investment strategy whose primary goal is to provide regular payment of investment earnings, by way of interest, dividends or other forms of distributions. In general, income investments may decline in value when interest rates rise. Income investments may include GICs, fixed income investments (bonds and preferred shares), treasury bills and mutual funds that invest primarily in bonds or money market investments. Growth Growth is an investment strategy with an objective for capital appreciation over time while also attempting to preserve wealth. Growth investments offer the potential for higher rates of return over longer periods of time but with commensurate levels of risk. These investments may offer little or no income but are more likely to generate growth. They may experience volatility in the pursuit of longer term returns. What Does Short-Term Growth Mean? Short term growth is an investment strategy that has a term that is typically 3 years or less. What Does Medium-Term Growth Mean? Medium term growth is an investment strategy that has a term that is typically between 4 to 9 years. What Does Long-Term Growth Mean? Long term growth is an investment strategy that has a term that is typically greater than 10 years. What Does Risk Tolerance Mean? The degree of uncertainty that an investor can handle in regard to a negative change in the value of his or her portfolio. Risk tolerance will differ according to age, income level, net worth, investment and financial goals, time horizon as well as investment knowledge and experience. Low Risk Tolerance Low risk investments may experience only minor fluctuations in value and carry little risk of loss of invested capital. These investments are suitable for investors willing to accept lower returns for greater safety of capital and may include such investments as Canada Savings Bonds, GICs and money market mutual funds. Medium Risk Tolerance Medium risk investments may experience moderate fluctuations in value and may result in some loss of invested capital. These investments are suitable for investors that are looking for higher return or moderate growth over a longer period of time. High Risk Tolerance High risk investments may fluctuate significantly in value and may result in the loss of a substantial portion, or all, of the invested capital. These investments are suitable for investors willing to accept significant fluctuations in portfolio value in exchange for potentially higher returns over a long period of time. Time Horizon Time Horizon is the length of time prior to which you will require access to a substantial majority of your funds or in simpler terms how long may you invest until you require your money back. This element of the KYC investor profile is important as the time horizon affects the suitability of your investments, including asset mix and choice of investment product. Suitability Process Assante is required under securities legislation and The Investment Industry Regulatory Organization of Canada ( IIROC ) rules and regulations to ensure each investment recommendation made by your Advisor is suitable based on the information you provide to your Advisor. This requirement applies both to transactions recommended by your Advisor and transactions proposed by you. In addition, IIROC rules require that your Advisor and Assante conduct an assessment of suitability of investments where the following trigger events occur (non-exhaustive): w a transaction is accepted; w a recommendation is made; w you transfer assets into your account at Assante; w Assante or your Advisor becomes aware of a material change in your information; or w there is a change in your Advisor Individuals should be aware that circumstances other than those listed above, such as significant market fluctuations, will not automatically trigger a suitability review.your Advisor may not necessarily conduct an assessment of suitability at all times. If you wish for your Advisor to confirm that your portfolio is suitable in a particular circumstance, please contact your Advisor and request this review. ASSANTE CAPITAL MANAGEMENT Relationship Disclosure Information 4 of 8

5 Your Advisor reviews the personal information you provide, including your investment objectives and risk tolerance, and uses this information to make an assessment of suitability with respect to the investment recommendations for your account. In most circumstances, your Advisor and Assante will make an assessment with respect to suitability by reviewing the following material information you provide to your Advisor: w Age; w Investment experience; w Investment knowledge; w Income; w Net worth; w Investment Objectives; w Risk Tolerance; and w Time Horizon Additional client personal information may be considered, where relevant to a particular circumstance. STATEMENT OF POLICIES CONCERNING RELATED AND CONNECTED ISSUERS The Provincial Securities Commissions have established different requirements for the disclosure of information to you concerning our relationships with certain parties. PLEASE READ THE INFORMATION BELOW. Assante, its officers, employees and Advisors must observe, in letter and spirit, all applicable laws and regulations. Confidential Client Information Confidentiality of client information is a fundamental principle of Assante. No employee or Advisor may release confidential client information unless required by law, securities rules/regulation or with the client s consent. Improper Use of Confidential and Insider Information The improper use of confidential information, or of any inside information not generally disclosed, for personal gain or for the benefit of another person, is prohibited and grounds for dismissal of an employee or Advisor. Conflicts of Interest Securities laws require that we take reasonable steps to identify and respond to potential or existing material conflicts of interest, between Assante, individuals acting on behalf of us and a client. We are required to inform you (by way of a current disclosure) of the nature and extent of a material conflict in a timely manner at the time of account opening and again prior to the activity being undertaken. In addition, securities laws of certain jurisdictions of Canada require securities dealers and advisors, when they trade in or advise with respect to their own securities or securities of certain other issuers to which they, or certain other parties related to them, are related or connected, to do so only in accordance with particular disclosure and other rules. These rules require dealers and advisors, prior to trading with or advising their customers or clients, to inform them of the relevant relationships and connections with the issuer of the securities. Clients should refer to the applicable provisions of the securities laws for the particulars of these rules and their rights to consult with a legal professional. The following statements contain a general description of the required disclosure. A. Business Activities Assante will participate as a dealer, in distributions of securities, including securities of a related or connected issuer. Accordingly, Assante will provide a full range of services in respect of securities of other issuers. Such services shall be carried on by Assante in the ordinary course of its business as a dealer, in accordance with its usual practices and procedures and in accordance with all applicable disclosure and other regulatory requirements. B. Related Issuers/Connected Issuers and Nature of Relationship A related issuer means a person or company that influences, or is influenced by, another person or company. A connected issuer is a company that has a business relationship with Assante that, in connection with a distribution of securities of the issuer, is material to a prospective purchaser of the securities. ASSANTE CAPITAL MANAGEMENT Relationship Disclosure Information 5 of 8

6 C. Disclosure (i) Where a client deals in securities of a related issuer or, in the course of a distribution, of a connected issuer, whether or not Assante has advised the client about the trade, the confirmation of any such transaction and the account statement (trades into account monthly or quarterly requirements depending on activity) will indicate the relationship to Assante. (ii) Where a client seeks to purchase securities during a distribution of securities where the issuer is either a related issuer or a connected issuer and where Assante has participated as a member of the selling group, whether or not Assante has advised the client about the trade, Assante will: (a) either orally or in writing inform the client of the existence of the relationship before entering into a contract for the purchase of the securities. For this purpose, this notice is written confirmation of Assante s relationship with CI and its affiliates and the mutual funds managed by such firms; (b) ensure that all confirmations of trades and account statements indicate the relationship to Assante; and (c) ensure that full, true and plain disclosure of the relationship is contained in the Fund Facts or other documents being used to qualify those securities. (iii) Where Assante advises a client in respect of the securities of a related issuer or, in the course of a distribution, of a connected issuer, Assante will: (a) either orally or in writing inform the client of the existence of the relationship prior to advising the client. For this purpose, this notice is written confirmation of Assante s relationship with CI and the products and services offered through CI and its subsidiaries and the mutual funds managed by such firms; and (b) ensure that all confirmations of trades and account statements indicate the relationship to Assante. D. Revision or Amendment Revisions or amendments to this statement will be provided to each client in accordance with applicable law. PRINCIPAL AGENT BUSINESS DISCLOSURE Assante is a registered investment dealer under provincial securities regulation and is a member of a self-regulatory organization, the IIROC. Our Advisors are agents of Assante who work with clients to provide products and services to help them reach their financial goals. In either case, Assante will be irrevocably liable to you and will continue to be liable to you for the acts and omissions of your Advisor relating to Assante s business as if the Advisor were an employee of Assante. By continuing to deal with Assante, you accept its offer of indemnity. Products & Services Assante offers a full range of approved investment products and services, including: w Mutual Funds w Canadian and U.S. equities, including select new issues w Canadian and U.S. preferred shares w Flow-through shares w Government and Corporate bonds w GICs and Deposit Notes w High Yield Savings Accounts w Limited Partnerships w Hedge Funds and Pooled Funds w Principal Protected Notes w Structured Products w Self-Directed Plans registered w Tax Free Savings Accounts (TFSA) w Fee-based accounts w Education planning (RESP) w Margin accounts w Financial/Estate Planning There may be charges for each of these products and services which should be discussed with you prior to initiating a transaction. ASSANTE CAPITAL MANAGEMENT Relationship Disclosure Information 6 of 8

7 OUTSIDE BUSINESS ACTIVITY DISCLOSURE Your Advisor may have other gainful occupation if that occupation is permitted by Assante and your Advisor has received prior approval from us to engage in that other gainful occupation ( outside business activity ). You should be aware that Advisors may provide other products and services that are outside of his/her affiliation with Assante. These are not considered securities-related and are the responsibility of the Advisor alone. However, Assante will, as best as possible, monitor the activity to ensure compliance with conflict of interest rules. Assante will investigate and follow-up on written client complaints relating to an outside business. Assante makes no representations or warranties and assumes no liability in connection with any outside business activities engaged in by your Advisor. Your Advisor is responsible to provide you with a list of reportable outside business activities (initial disclosure) of which they participate at account opening. If you receive actual delivery of a product/service through an outside business activity in which the Advisor participates after account opening, your Advisor must provide you with a second disclosure with respect to the outside business activity. Distribution of insurance-related products through Assante Estate and Insurance Services Inc. and/or tax related services are examples of activities offered as an outside business. Since there are a wide variety of products and services that can be provided by your Advisor as an outside business activity, that is, outside his or her affiliation with Assante, your Advisor may need to provide supplementary information to you. This disclosure could include notice of any potential conflict of interest that may affect your Advisor s ability to provide objective advice. It may also disclose the name of the company or organization providing the product or service and your Advisor s relationship to them. If you have any questions please contact Assante s Chief Compliance Officer via the Assante Service Centre at DISCLOSURE OF RELATED REGISTRANTS Securities legislation requires a dealer or advisor to inform clients if it has any principal shareholders, officers, partners or directors who are also principal shareholders, officers, partners or directors of another securities registrant. As well, the dealer or advisor must provide to its clients details of the policies and procedures adopted to minimize the potential for conflict of interest resulting from these relationships. Assante is an indirect wholly-owned subsidiary of CI. As of November 29, 2013 CI is also a principal shareholder of the following dealers or advisors (individually, a Related Registrant ): Assante Ltd., CII, CI Fund Services Inc., CI Private Counsel LP and Marret Asset Management Inc. In addition, Related Registrants may include other dealers and advisers of which CI becomes a principal shareholder. Assante may from time to time have directors and/or officers who are also directors and/or officers of a Related Registrant. Each of CI, Assante and the Related Registrants is a separate legal entity which carries on its business independently. Assante may enter into arrangements with its Related Registrants respecting such matters as the provision of support services, distribution of products and services, and client referrals. Conflicts of interest resulting from the above relationships are minimized in a number of ways. Regulations, policies and procedures made by the industry regulating bodies restrict, and otherwise regulate the relationships among dealers, advisors, and related registrants and govern their relationships with one another and clients. As well, Assante has its own conflict of interest policies. Compliance with both internal and external regulations, policies and procedures are monitored at all levels of the company under the guidance of Assante s Compliance Department. For further information concerning these matters, please contact Assante Service Cenre at LIST OF RELATED AND CONNECTED ISSUERS Please refer to for a current list of related and connected issuers. Alternatively, you may contact our Assante Service Centre at ASSANTE CAPITAL MANAGEMENT Relationship Disclosure Information 7 of 8

8 COMPLAINT HANDLING PROCESS Client Complaint Handling Process The following outlines Assante s process for dealing with client complaints. Assante has procedures to handle both written and verbal complaints that include an alleged grievance involving Assante and or Advisor. We request that you submit the details of your complaint, preferably in writing, to the Director of Complaints and Investigations, Assante Wealth Management, 15 York Street, 4th Floor, Toronto, Ontario, M5J 0A3 or alternatively by to complaints@assante.com. For privacy reasons, we will only deal with complaints from our clients or another individual authorized in writing to deal with us. Assante will acknowledge all complaints within five business days of receiving the complaint. We will provide you with a brochure outlining the options available to you should the resolution of your complaint be unsatisfactory ( An Investor s Guide to Making a Complaint ). Your Advisor must also provide a copy of this same brochure at the time of account opening to new clients as of March 26, 2013 and all existing clients as of March 26, Your complaint will be handled by experienced and qualified staff. If at any time you require an update or the status of your complaint, you may contact the Director of Complaints or the Compliance Officer handling your complaint via complaints@assante.com. We will review all complaints fairly after gathering the necessary information, reviewing your documents and if necessary, conducting interviews. We will provide you with a substantive response to your complaint, generally within ninety days. If the review process will not be completed within ninety days, we will make you aware of our progress, the reasons for the delay and our anticipated completion date. Outcome of Complaint In our substantive response letter we will either offer to resolve your complaint or deny it. You may have to sign a release if the case offers a financial settlement. You will be provided with information regarding alternative options if you are unsatisfied with our response. ASSANTE CAPITAL MANAGEMENT LTD. Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. 2 Queen Street East, 20 th Floor, Toronto, Ontario M5C 3G7 Telephone: (416) / Fax: The Assante symbol and Assante Wealth Management are trademarks of CI Investments Inc., used under licence ACM_1611_E (12/17) ASSANTE CAPITAL MANAGEMENT Relationship Disclosure Information 8 of 8