See also:

New privacy legislation kicks in January 1

FundSERV welcomes Carol De Veau to senior management team

Executive assistant prefers people to processes

2003 FundSERV United Way campaign, another sweet success

FundSERV Network Performance

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The holiday season is fast approaching and there is a renewed sense of optimism in the economy. The rise of the Canadian dollar and improved though volatile market performance should be signals for a long-awaited successful RRSP season. Hopefully Canadian investors recognize that the widely publicized "late trading" scandals in the U.S. mutual fund industry have occurred at least partly because of their relaxed system of time stamping orders. We share our customers' concerns in this regard and are mindful of our need to provide transparency and promote integrity within the Canadian industry.

We want to ensure that industry watchers understand key differences between Canada and the U.S., so that any comparisons made in relation to order processing are valid. One key difference we have pointed out is that, in Canada, electronic orders are time stamped by FundSERV. In the U.S., however, it is the distributors who control the delivery and timing of trades. Given our high percentage of electronic transactions, the opportunity for backdated trades is greatly reduced in Canada.

FundSERV is a computer utility. It provides an essential link between fund companies and their distributors. Its workflow management systems help our industry cut costs, reduce risks and ensure the integrity and reliability of our services remain high. We consider transparency a responsibility of all industry participants and we will continue to do our share to increase investor confidence in industry processes.

During 2003 we made significant progress on our objectives and are now moving toward an important milestone with the order entry conversion to XML. This conversion will provide the additional flexibility needed to increase automation in the industry and further reduce cost, time and risk for our customers. It will also allow us to remain in step with global technology best practices.

As we prepare to close the book on 2003, we want to thank all of our employees, committee members and working group participants whose individual and collective efforts have made this such a productive year for FundSERV. A new year is about to begin. Already it promises to be full of challenges and opportunities for all of us. In the meantime, have a safe and happy holiday. We wish all the very best to you and yours in 2004!

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