Mackenzie Dedicated to the Group Market  Mackenzie has been active in the group market since 1988 and will continue to focus on this market in the future.  John Boukouris is the most recent addition to the Group Plans Sales and Marketing team. He will cover Western Canada.  We have overhauled all our marketing materials in an effort to provide you with the tools required to actively promote group plans.

Why were the CAP Guidelines developed?  Rapid growth of CAP plans where members were required to make their own investment decisions.  Available investments among service providers have become more complex.  Need to create a level playing field.  To provide guidance beyond existing pension and other related legislation.

Evolution of the CAP Guidelines  The proposed principles were first developed in  The “Revised Principles for Investment Disclosure in Capital Accumulation Plans” was finalized in  The first draft of the CAP Guidelines were released in April  The official CAP Guidelines were released in May 2004.

3 Main Themes to CAP Guidelines 1.Governance 2.Disclosure 3.Creation of a level playing field.

7 Sections Make up Guidelines 1.Introduction 2.Setting up a CAP 3.Investment information and decision making tools for CAP members 4.Introducing the CAP to members 5.Ongoing communication to members 6.Maintaining a CAP 7.Terminating a CAP

Section 1: Introduction  Definition of a CAP  The intent of the Guidelines  Implications for the CAP sponsor, service providers and CAP members.

Section 2: Setting up a CAP  Clearly define the purpose of the CAP  Establish criteria for the selection of service providers.  The plan sponsor should select investment options to be made available in the plan.  CAP Members should be able to transfer among investment options.

Section 3: Investment Information and Decision-Making tools for CAP Members  Plan Sponsor should provide CAP Members with the following:  Investment information  Decision-making tools  Access to a financial advisor

Section 4: Introducing the CAP to Members  The Plan Sponsor should provide CAP members with information on the plan including:  The features of the plan including contribution levels.  The CAP members rights and responsibilities under the plan.  Sufficient detail about the investment options available.  A description and amount of all fees, expenses and penalties relating to the plan.

Section 5: Ongoing Communication to Members Members must be provided with:  Account statements at least annually  Details on investment funds and transactions within the account.  Notification of significant changes in investment options.

Section 6: Maintaining a CAP  Plan Sponsor should review all service providers annually.

Section 7: Terminating a CAP  Must be done in accordance with the terms of the plan and any applicable legal requirements.  Members must be notified

Pension Plan Governance Principles  In addition to the CAP Guidelines, there are a set of principles that apply to DC Pension Plans.  Pension plan governance refers to the structure and processes for overseeing, managing and administering a pension plan to ensure the fiduciary and other obligations of the plan are met.

Information on Pension Plan Governance  The pension plan governance guidelines are part of Guideline No. 4. You can obtain a copy of this guideline at  Use the Self-Assessment Questionnaire, this is part of Guideline No. 4, to determine if your client’s pension plan is compliant.

The advisor opportunity  Identify your existing clients/prospects  Use the CAP checklist to set up a meeting  Focus in on how you can help them comply with the guidelines. !  Utilize the seasoned Mackenzie sales team to take your business to the next level  Don’t forget to cross-sell