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Bulletin #0398-C

Compliance
B.E.S.T. Discoveries Fund – Conversion of Fund Units

Contact: Carlo
Quattrociocchi
BULLETIN #0398 – C
Manager, Sales Compliance
September 17, 2009
Phone: (416) 943-4611
E-mail: cquattrociocchi@mfda.ca

MFDA Bulletin

Compliance

For Distribution to Relevant Parties within your Firm

B.E.S.T. Discoveries Fund – Conversion of Fund Units

On July 24, 2009, a conversion of units in the B.E.S.T. Discoveries Fund (the “Fund”) was
executed in accordance with a Plan of Arrangement approved by the shareholders of the Fund on
June 24, 2009.

Under the terms of the Plan of Arrangement, shareholders of the Fund were offered a choice
between converting their Class A shares in the Fund into either:

i)
a new class of Class A shares of the Fund and/or
ii)
a new class of listed Class L shares

The Class L Shares are listed on the Canadian National Stock Exchange. Furthermore, holders of
existing Class A shares of the Fund who held their shares for more than 8 years from the date of
issue and did not make an election by the election deadline were deemed to have made an
election to convert their Class A shares into Class L shares. Holders of existing Class A shares of
the Fund who held their shares for less than 8 years from the date of issue and did not make an
election by the election deadline were deemed to have made an election to convert their Class A
shares into new Class A shares.

Clients who elected or were deemed to have elected to receive Class L shares in exchange for
their existing Class A shares would be in a position where they hold shares in a publicly traded
company. As Approved Persons of Member firms are prohibited from providing advice or acting
in furtherance of trades of such securities, clients will be required to transfer these securities to
an appropriately registered investment dealer to sell or otherwise transact in these securities.

To avoid potential difficulties with respect to trading in the securities and to avoid the possibility
of engaging in activities beyond their registration limitations, staff expects Members to take all


reasonable steps to ensure that clients transfer the securities to an investment dealer as
expeditiously as possible. At a minimum, staff expects that Members will:

i)
Determine which clients received Class L shares in exchange for their existing Class
A shares;
ii)
Immediately send a letter to each of these clients informing them that the Member is
not licensed to trade in these securities and requesting that they transfer the Class L
shares to an investment dealer;
iii)
Follow up with any clients who have not transferred their Class L shares to an
investment dealer by sending a second letter no later than 3 months after the date of
the initial letter and by sending follow up letters on an ongoing basis with client
account statements until such time as the clients transfer the shares; and
iv)
Take appropriate steps to advise Approved Persons that they are not able to provide
advice on the Class L shares of the Fund.

Members who are holding Class L shares in nominee name should also be aware that they are to
continue report on these assets in client account statements and reconcile positions in the Class L
shares on a monthly basis.

Members that have further questions on the conversion of the Fund may contact B.E.S.T Funds
at info@bestfunds.ca or by telephone at 416-203-7331.

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