Mr. Murray Oxby reports

CI FINANCIAL COMMENTS ON OSC NO-CONTEST SETTLEMENT

CI Financial Corp. has issued the following statement with regard to the no-contest settlement agreement entered into today between its subsidiary CI Investments Inc. and the Ontario Securities Commission.

CI Financial will release its audited financial results later today, which include a provision of $10.75-million for remediation of the administrative error, which is the subject of the settlement agreement. This amount includes the cost of the voluntary payment, which CI Investments has agreed to make to the Ontario Securities Commission.

The settlement agreement is in respect of an administrative error that CI Investments discovered in April, 2015, and reported to the Ontario Securities Commission. As a result of this error, approximately $156.1-million of interest that had accrued in the bank accounts of seven CI Investments mutual funds had not been properly recorded as an asset in the accounting records of those funds. As a result, the net asset values of these funds, and any funds that had invested in these funds, had been understated for several years. The accumulated interest is in bank accounts owned by the mutual funds and at all times remained in those bank accounts as an asset of these funds and was never co-mingled with the property of CI Investments.

Once the error was discovered, CI Investments, with the assistance of an independent consulting firm, undertook a comprehensive investigation into how the error occurred and developed a plan to put affected investors into the economic position they would have been in if the interest had been recorded. The remediation plan will return the entire amount of the accumulated interest to current and former investors in the funds without deduction of any management fees or administrative costs. Over 48 per cent of retail investors in the affected mutual funds will receive payments of $100 or less.

CI Investments has already undertaken enhancements to its systems and processes to help prevent similar errors from occurring in the future.

We seek Safe Harbor.