This Policy has been adopted by the Board of Directors to describe the basis on which CIPF intends to exercise its discretion in authorizing payments to customers of insolvent CIPF Members. CIPF’s discretion may be exercised in a manner that is consistent with the right and extent to which a person may be entitled to claim against the customer pool fund of a Member under the Bankruptcy and Insolvency Act (Canada), subject to other restrictions in this Policy and the sole discretion of CIPF to determine protection. CIPF reserves the right to authorize or withhold payments in a manner other than as prescribed in this Policy.

In the case of any question or dispute as to the eligibility of a customer, the financial loss incurred by a customer for the purposes of payment by CIPF, and the maximum amounts to be paid to a customer, the interpretation of this Policy by CIPF shall be final.

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ELIGIBLE CUSTOMERS

CIPF maintains on its website at www.cipf.ca a list of Members whose eligible customers are entitled to protection subject to the terms of this Policy.

A customer eligible for protection by CIPF shall be any customer having a securities or commodity and futures contracts account with a Member used solely for the purpose of transacting securities or commodity and futures contracts business (dealing as principal or agent).

Such accounts are to be fully disclosed in the records of the insolvent Member and are normally evidenced by receipts, contracts and statements that have been issued by the Member.

A customer may be an individual, a corporation, a partnership, an unincorporated syndicate, an unincorporated organization, a trust, a trustee, an executor, an administrator or other legal representative.

Customers introduced to a Member by a foreign affiliate of the Member, in accordance with SRO requirements, are customers of the Member eligible for coverage.

All the accounts of a customer that have been opened with a Member by a domestic investment counselor registered with a Canadian securities regulatory authority, and whose accounts are fully disclosed in the records of the Member shall be combined or aggregated to constitute a single General account, unless such accounts are otherwise Separate Accounts under this Policy.

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AN ELIGIBLE CUSTOMER SHALL NOT INCLUDE a person who at the date of insolvency or any relevant time as determined by CIPF was:

i) a Member of a sponsoring SRO of CIPF or any other dealer registrant such as a securities dealer, mutual fund dealer, limited market dealer or futures commission merchant, or a foreign securities dealer registered with a Canadian securities regulatory authority or foreign equivalent;

ii) an institution, securities dealer or other person, and its customers, dealing with a Member of an SRO on an omnibus basis (being an account in which the transactions of two or more persons are combined without the disclosure to the Member of the identity of the persons);

iii) a clearing corporation;

iv) any person who owns in aggregate five percent or more of the capital of the insolvent Member consisting of equity securities of any class and/or subordinated debt of the Member;

v) a general partner or director of the insolvent Member;

vi) a limited partner with a participation of five percent or more in the net assets or net profits of the insolvent Member;

vii) a person with the power to exercise a controlling influence over the management or policies of the insolvent Member;

viii) a person who caused or materially contributed to the insolvency of the Member;

ix) a person who did not deal at arm’s length with the insolvent Member or with a person who is excluded as a customer; or

x) a customer of a foreign approved participant of an SRO which is not considered by CIPF to be a Member of an SRO. Such participants include foreign dealers or other organizations regulated in recognized jurisdictions, without a place of business in Canada, and who do not deal with customers in Canada except as permitted by applicable Canadian securities legislation.

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LOSSES OF ELIGIBLE CUSTOMERS NOT COVERED

The following customer losses are not eligible for payment by CIPF:

(i) losses which do not result from the insolvency of a Member, such as, customers’ losses that result from changing market values of securities, unsuitable investments, or the default of an issuer of securities;

(ii) losses in accounts of customers related to business financing purposes of a Member, such as securities lending and purchase/repurchase transactions;

(iii) losses where the customer has not filed a claim with CIPF, or the trustee in bankruptcy of the insolvent Member, within 180 days of the date of insolvency; or

(iv) securities or segregated funds that are not held by a Member, or recorded in a customer’s account as being held by a Member, such as a mutual fund that is registered directly in the name of the customer with the mutual fund company and is, therefore, not held by the Member for the customer in its records, unless such securities or funds are in the control of the Member.

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LIMITS OF COVERAGE