Compliance Memo

Compliance Memorandum 2011-06; Change of fund risk rankings: CI Mutual Funds

For more information, contact:

Compliance Team
compliance@gpwealth.ca

Date Issued:

August 17, 2011

We have been advised by CI Mutual Funds that they have recently made changes to the risk
rankings of a number of their funds. The mutual funds affected are noted on the attachment to
this memo.

As a best practice, the portfolios of any clients holding any of these funds should be reviewed
for continued suitability of their portfolios. At a minimum, the KYC and portfolio review must
take place prior to any new trades in the affected plans.

Where the existing holdings now exceed the client’s stated “Plan Risk Tolerance”,
recommendations should be made to rebalance the portfolio to bring it into agreement with the
Risk Tolerance, Investment Objectives and Time Horizon previously noted for the client’s plan.

We must caution advisors against updating risk tolerance to simply match the risk tolerance of
these existing holdings in an effort to keep the affected plans onside of KYC.

Whenever an update to KYC is submitted under these circumstances, it should be
accompanied with the Investment Planning Questionnaire (available to all advisors from their
personal website) in support of such a change to the risk tolerance of the client.

As always, if you have any questions or comments, contact the Compliance Department by email at compliance@gpwealth.ca.