Relationship Disclosure Brochure

Relationship Disclosure Brochure

The purpose of this document is to provide a meaningful and plain language description of the products and services Corex Financial Inc. (“Corex”) offers through its Discretionary Managed Account program and for the direct purchase of Corex investment funds, the nature and manner in which accounts are operated and Corex’s responsibilities to its clients. It also describes our obligations to you, some information about the products and services we offer to you, and how we earn for these products and services.

Nature of Your Account with Corex

Your Corex Account is a discretionary portfolio management account which means that Corex makes all investment decisions in your Account based upon your investment needs and objectives. For clients who invest directly in Corex’s investment funds, Corex has an obligation to determine the suitability of the investment for the client. Corex has a fiduciary duty to always act in your best interests.

Corex’s Products and Services

Corex is registered as a Portfolio Manager in each of the provinces and territories of Canada and is registered as an Investment Fund Manager in the provinces of Alberta, Ontario, Quebec and Newfoundland and Labrador.

Corex is registered as a Portfolio Manager to provide discretionary portfolio management services to its clients. As an Investment Fund Manager, Corex is responsible for the day-to-day business and affairs of its investment funds, which are managed by Corex.

Within its managed accounts, Corex may purchase third party investment funds, investment funds managed by Corex, or funds managed by related and connected issuers. In the event that a client is invested in an investment fund managed by Corex within a discretionary managed account, and if the client terminates their agreement with Corex, then the client may be required to sell the investment fund and may incur losses or capital gains upon the sale of the investment fund.

For discretionary managed accounts that hold funds managed by Corex or related and connected issuers to Corex, in determining suitability we aim to consider all comparable investment products available to the client, both proprietary and non-proprietary, and will utilize the product that best meets client investment needs and objectives.

Corex will provide full disclosure of any management fees and operating or other charges or expenses incurred within the fund prior to the utilization of the investment fund within a Corex discretionary managed account or prior to a client making a direct subscription for units in the investment fund.

Fees, Transactional and Operating Charges

All fees and other transactional and operating charges set out in the Corex fee schedule as amended from time to time by Corex. The Corex fee schedule is found in the help centre under Overview or may be obtained by contacting a Corex representative. Your specific fee schedule can be found within the documents tab when you login to your client portal.

For all clients, Corex does not currently charge clients any amounts in respect of the operation, transfer, or termination of their account(s) with us. These types of charges are referred to as “operating charges”. If we decide to impose any operating charges, we will advise you at the time your account is opened in the documents described above that are applicable to your account(s).

For Corex clients who receive our discretionary portfolio management services, after your account is opened, we will provide you with at least 60 days written notice before we impose any new or increased operating charges. Corex currently covers the custodian and trading fees associated with your account. Note that the investment account custodians do generally charge a transfer fee payable directly by you. However, in most cases, the recipient institution often reimburses you for receiving the transferred assets, although we cannot guarantee all financial institutions do so.

If you invest in securities of our funds, other investment funds, or other pooled investment vehicles, you will indirectly bear the fees and expenses paid by those funds or other vehicles. These fees and expenses will be disclosed in the offering documents or other disclosure documents that you receive. For investment funds created, managed, and advised by us, the management fees are disclosed in the help centre under Corex Funds.

 

Our current list of custodians:

1. CI Investment Services Inc.

Our current list of approved brokers:

1. CI Investment Services Inc.

 

TRANSACTION CHARGES

For Corex clients who receive our discretionary portfolio management services, unless otherwise stated, we do not currently charge clients commissions, short-term trading fees, redemption charges, or other amounts in connection with the purchase or sale of securities through their accounts with us. These types of charges are referred to as “transaction charges”. If we decide to impose transaction charges, the charges applicable to securities purchased by you will be described in the subscription agreement or other documentation that you complete or receive prior to completion of the transaction and, if applicable, in the periodic account statements that you receive. Notwithstanding the forgoing, certain accounts of discretionary clients may be designated as “excluded accounts” in a client’s investment policy statement. In such cases, the client has agreed that specific account to be excluded from discretionary account management fees, and thereby, a commission may be earned by us for placing trades on the client’s behalf. Such commissions are disclosed in the relevant offering document or subscription agreement, where applicable. In rare instances, securities in such excluded accounts pay a referral fee to us instead of a commission, or a combination of referral fee and commission. Such fee arrangement will be disclosed to the client and only occurs in equitable scenarios where the fees we earn would be comparable to the fees that the client would pay at another dealer or investment advisor firm.

If you invest in securities of our funds, other investment funds, or other pooled investment vehicles, you will indirectly bear the fees and expenses borne by those funds or other vehicles. These fees and expenses will be disclosed in the offering document or other disclosure documents that you receive.

You may also be charged other amounts by third parties, who play a role in relation to your account. You should obtain information from those parties directly.

COMPENSATION PAID TO US

Corex clients who receive discretionary portfolio management services will generally pay us compensation that is based on a percentage of the value of the assets under our management, which may be subject to a minimum fee, or a monthly fixed service fee as agreed to between the client and us in the investment policy statement. We may use our own funds, or funds from related and connected issuers for discretionary accounts, and we will purchase the reduced fee-based class (F Class) of those funds to be comparable to the same fees that someone would pay if the person is a client at another investment advisor firm that uses third-party funds.

Corex may receive certain compensation in relation to the securities or other products that you purchase through your account with us, including a commission based on a percentage of the value of the securities purchased or a management fee, performance fee, or other similar compensation in relation to our role as the IFM or PM of our funds, or for the other services we agree to provide to you in the account agreement documentation we have with you.

RISKS TO CONSIDER WHEN MAKING AN INVESTMENT DECISION AND OUR SUITABILITY OBLIGATIONS

You should carefully consider whether an investment is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. You should understand the nature of the investment and the extent of your exposure to risk. Depending on the nature of your investment, the type of investment risk will vary. Investment risks include:

Capital risk – the risk that you may lose the money you invest.

Business risk – the risk inherent in the operations of the entity or industry in which you have invested.

Financial risk – the risk associated with the amount of leverage or debt that the entity in which you have invested has used to finance assets.

Currency risk – the risk that currency movements alone may affect the value of your investment if it is held in another currency.

Interest rate risk – the risk that the principal of a debt instrument that you have invested in will increase or decrease as the interest rates in the economy increase or decrease.

Liquidity risk – the risk that your investment may not be readily saleable.

Market risk – the risk that your investment in securities traded on a stock exchange or other public market may be affected by general changes in the market.

Foreign market risk – the risk that foreign investments may experience larger or more frequent price changes in the short term due to different financial, political, and social factors.

The specific risks associated with an investment in our funds or in other securities purchased from or through us will be described in the applicable offering documents or other disclosure documents under the heading “Risk Factors” or another similar heading.

Clients should also take into account their Risk Tolerance. Risk tolerance is your willingness and ability to assume risk and incur fluctuations and/or losses in the value of your investments in pursuing your investment goals.

We will allocate your portfolio, depending on your suitability assessment, into one of five risk tolerances:

Low: Low risk investments generally have low volatility and are for investors who favour greater safety of capital and are willing to accept lower returns as a result.

Low to Medium: Low to medium risk investments generally have a low to medium volatility but a higher volatility than low risk.

Medium: Medium risk investments generally have a medium volatility and are for investors whose objectives are for moderate growth over a longer period of time.

Medium to High: Medium to high risk investments generally have medium to high volatility and are for investors that are looking for long term growth.

High: High risk investments generally have a high volatility and are for investors who are growth oriented and who favour the potential for higher long term returns and are willing to accept significant short term fluctuations in portfolio value as a result.

Risks of Using Borrowed Money

When you use borrowed money to purchase a security or make other investments, that investment is subject to certain additional risks. You may purchase securities using available cash, or a combination of available cash and borrowed money. If you use available cash to pay for the securities in full, the percentage gain or loss will equal the percentage increase or decrease in the value of the securities. Using borrowed money to purchase securities can magnify the gain or loss on the cash invested. The effect of this is called “leveraging”.

If you are considering borrowing money to purchase securities, you should be aware that a leveraged purchase involves greater risk than a purchase using available cash resources only. To what extent a leveraged purchase involves undue risk is a decision that needs to be made by you and will vary depending on your personal circumstances. In particular, you should be aware of the terms of any loan that is secured by the securities. The lender may require that the amount outstanding on the loan does not rise above an agreed percentage of the market value of the securities. Should this occur, you may be required to pay down the loan or sell the securities so as to return the loan to the agreed percentage relationship. Money is also required to pay interest on the loan. Under these circumstances, investors who leverage their investments are advised to have adequate financial resources available both to pay interest and also to reduce the loan if borrowing arrangements require such a payment.

Roles and Responsibilities in Referral Arrangements

Corex enters into referral arrangements with third parties (“Referral Partners”) who introduce clients to Corex. It is important that you understand the distinct roles played by Corex and the Referral Partner. Under such arrangements, we may pay a referral fee to the partner. These Referral Partners are generally not registered to provide investment advice or portfolio management services.

• Role of the Referral Partner: The Referral Partner is not registered to provide investment advice or portfolio management services to you (unless explicitly disclosed otherwise). Their role is strictly limited to introducing you to Corex and marketing our services. They are not permitted to provide investment advice, discuss suitability, or accept trading instructions.
• Role of Corex: Corex is the registered Portfolio Manager and is solely responsible for gathering your KYC information, determining suitability, making investment decisions, and directly servicing your account. Corex should only accept clients where it is in the client’s best interest to do so, not solely to generate revenue and maintain a partner relationship with the Referral Partner.

 

Conflicts of Interest

A conflict of interest means that there is an influence which may affect the decision that we as your Portfolio Manager would make in our dealings with you, or conversely it may affect the decision that you, as the client, would make regarding your account with us.

Potential Conflicts of Interest in Referrals:

• Confusion of Roles: Because Referral Partners will be branding Corex and its services, there is a risk that you may be confused about who is providing investing management and advice. Referral Partners are therefore prohibited from conducting registrable activity in relation to specific investing management and advice.
• Financial Incentive: Referral Partners will have incentive to refer you to Corex to obtain a referral fee, therefore, not serving you solely in your best interest.
• Product Bias: Partners may have incentive to only refer you based on specific investment mandates such as ethical or religious compliances, or specialty services provided. This creates a risk which excludes other suitable investments.

How We Manage Conflicts of Interest

In general, we deal with and manage relevant conflicts as follows:

• Avoidance: This includes avoiding conflicts that are prohibited by law as well as conflicts that cannot effectively be addressed.
• Control: We manage acceptable conflicts through means such as policies and procedures.
• Disclosure: By providing you with information about conflicts, you are able to assess their significance when evaluating our services.

At Corex, we have adopted policies and procedures to assist in identifying conflicts of interest. Conflicts deemed too significant to be addressed through controls or disclosures will be avoided. If the conflict cannot be avoided, we will control the conflict with policies and processes, and where it will assist in managing the conflict, we will provide disclosure to you in order to explain how we manage the conflict in your best interests. This disclosure will assist you in helping to understand the nature of your relationship with Corex.

Managing Referral Conflicts

To manage conflicts explicitly with Referral Partners, we will ensure you are not disadvantaged, Corex will adhere to the following:

• No Additional Fees: You are not disadvantaged by paying higher fees as a result of the referral.
• Independent Suitability: Corex will perform independent Know Your Client (KYC) and suitability assessments for all clientele. The Referral Partner will not determine the suitability.
• No Service Deprivation: You will not be deprived of a standard level of service compared to clients who invest with Corex directly.
• Trade Name Policy: We enforce a policy requiring that wherever a Referral Partner’s brand is used in relation to Corex, our brand must appear with equal prominence to clarify that Corex is the registered Portfolio Manager.

The details of any specific referral arrangement applicable to you, including the way the referral fee is calculated and collected by us will be provided to you in full disclosure prior to opening your account.

Specific Material Conflicts of Interest

Our existing or reasonably foreseeable material conflicts of interest are described below.

Related and Connected Issuers

As part of our corporate structure, we have relationships with other companies who are considered related or connected issuers. These companies are considered related or connected to us if (i) the company is an influential securityholder of Corex, (ii) Corex is an influential securityholder of the company, (iii) Corex and the company are both a related issuer of the same third-party company, (iv) the company is a related issuer to us, or (v) a director, officer or partner of the company is employed by us or by a related issuer to us. Corex and a related or connected issuer have a vested interest in one another and it is our duty to make you aware of that relationship and address any conflicts the relationship may present.

RELATED ENTITIES AS OUTSOURCED SERVICE PROVIDERS

Some of our related, connected, and associated entities may act as service providers for our clients, our funds, and our firm. These situations present conflicts of interest that require mitigation and disclosure. We have outlined the following:

We make ongoing assessments to determine whether the costs of such service would have been the same or higher had we engaged other third-party service providers to provide similar services, and such services are essential to the respective operations. If a third-party service provider would be able to provide competitive pricing with superior service level and quality, we would make a determination to elect the service provider in the best interest of the funds’ unitholders.

Dual Registration and Common Control

Mr. Peter Fang acts as the Ultimate Designated Person (UDP), Chief Executive Officer (CEO), and Advising Representative (AR) for both Cortex Financial Solutions Inc. (Corex) and Hoovest Financial. (Corex). Mr. Corbin Lowe acts as the Chief Compliance Officer (CCO), Chief Operating Officer (COO) and AR for Corex and as the COO and AR for Corex. Therefore, Corex and Corex are under common control.

This dual registration creates a potential conflict regarding fiduciary duty, financial incentives, and confusion. To mitigate this:

• As a client of Corex, you are not required to open an account with Corex, and vice versa.
• In dealing with Mr. Fang or Mr. Lowe, it will be clearly stated which firm they are representing.
• As an Corex client, any recommendation to use Corex and its products will be strictly based on determination that it is suitable and in your best interest.
• Your information will not be shared with other entities, related or otherwise, without your express consent and real business purpose.
• Firms are maintained as separate legal entities.

Proprietary Products

 

All investment recommendations, whether proprietary or non-proprietary in nature should be based on the quality of the security and uninfluenced by any associated internal or third-party compensation. Our advisors are prohibited from making biased recommendations towards proprietary products over non-proprietary products, irrespective of any internal compensation. In addition, when recommending or using proprietary product as part of our discretionary portfolio construction, we ensure that:

• the investment is suitable for you;
• our advisors have a reasonable belief that the security is in the your best interests; and
• we disclose the proprietary nature of our pooled funds and the funds managed or created by us (see "Funds for which We act as a IFM or PM (including proprietary funds), OR FUNDS FROM RELATED AND CONNECTED ISSUERS").

Proprietary products are securities of an issuer if (i) the issuer of the security is a related or connected issuer of Corex or (ii) Corex or an affiliate of Corex is the Investment Fund Manager or Portfolio Manager of the issuer of the security. As a result, products which Corex manages, and securities issued by Corex or an affiliate are all proprietary products of Corex and pose a material conflict of interest.

To address this material conflict of interest, Corex ensures that there is no added incentive to sell proprietary products over other products. Representatives of Corex are required to select the product that is most suitable and, in your best interest.

Corex will always disclose the nature of the products and services offered, to ensure you are fully informed.

All Clients with a Corex discretionary managed account provide consent in writing for their portfolios to hold any investments that are managed by Corex and this consent is provided in the Discretionary Management Agreement the client signs with Corex.

Funds for which we act as an IFM or PM (including proprietary funds), or funds from related and connected issuers

Hoovest Core Fund

Hoovest Intelli Atrium Senior Housing Income Fund

Hoovest Intelli Senior Housing Income Fund II

Hoovest Liquidity Reserve Fund

Hoovest Private Securities Fund

Hoovest Private Securities Fund II

Hoovest Securitization Bond Fund

HSP S&P 500 Enhanced Index Fund (CAD Hedged)

Hoovest Smart Indexing Fund

Hoovest Venture Capital Fund

Hoovest Prudential Arbitrage Fund

Manzil Mortgage Fund

Corex Halal Equity Fund

Sub-advisory Agreements

Corex may engage one or more third-party or affiliated portfolio managers (each, a “Sub-Advisor”) to provide specific investment management or advisory services for your account or for investment funds in which you may invest. The Firm remains responsible for investment advice and portfolio management services provided to you and assumes contractual accountability for the actions of any Sub-Advisor.

A material conflict of interest arises when we select a Sub-Advisor because the Firm pays the Sub-Advisor’s fees out of the management fees you pay to us. We may have a financial incentive to select Sub-Advisors with lower fee structures to increase our retained portion of the management fee. Additionally, if we engage an affiliated Sub-Advisor, a conflict arises as the total fees remain within our corporate group.

We address these conflicts in your best interest by:

Independent Selection: Selecting Sub-Advisors based on a rigorous due diligence process focused on their proficiency, investment track record, and alignment with your stated investment objectives.

Oversight and Monitoring: Continuously monitoring the Sub-Advisor’s performance and adherence to your Investment Policy Statement.

Fee Transparency: Ensuring that the appointment of a Sub-Advisor does not increase the total management fee payable by you, unless explicitly disclosed and agreed upon in your Discretionary  Management Agreement.

Firms We Have Sub-advisory Agreements With

Corex Financial currently has sub-advisory agreements with:

• Hoovest Financial Inc.
• Global View Capital Management, LLC.

Personal Trading Activities

Each of our directors, officers, and employees put the interests of our clients first, ahead of our own personal self-interests. In particular, any individual who has, or is able to obtain access to, non-public information concerning the portfolio holdings, the trading activities, or the ongoing investment programs of our clients, is prohibited from using such information for our direct or indirect personal benefit or in a manner which would not be in the best interests of our clients. We must not use our position to obtain special treatment or investment opportunities that are not generally available to our clients or the public. These individuals are only allowed to make a personal trade if it falls within our personal trading policy or if our Chief Compliance Officer has determined that such trade will not conflict with the best interest of our clients.

Disclosure of Information

Corex is committed to ensuring the security of client personal information in order to protect it from unauthorized access, collection, use, disclosure, copying, modification or disposal or similar risks. Corex does not disclose your personal information to third parties other than:

• Through in its normal course of business may share client data to open, maintain, administer, or service client accounts, including, without limitation, for purposes of facilitating the account opening process and the provision of customer service with Corex’s strategic partners, specifically, Corex’s Custodian;
• To specific Corex employees in order to offer services to clients, to engage in surveillance, compliance, and reporting activities required by applicable law and/or to ensure disaster recovery services relating to such information (which may include trans-border transfers of information);
• To other suppliers or service providers who assist us in serving our clients. Our service providers may at times be responsible for processing or handling personal information;
• To legal counsel for the purpose of obtaining legal advice; and
• Where we are required or permitted to do so by law, including to any law enforcement agency, securities regulatory authority or Self-Regulatory Organization.

Reporting

Clients will not receive trade confirmations unless they specifically request them. If requested, they can be delivered electronically or through the mail (at additional cost) and would be done so promptly after each trade that is made.

Corex will deliver client statements, at a minimum, on a quarterly basis. Client statements will be provided monthly when there are new transactions, when a fee is incurred or when a client requests a monthly statement. Client statements will show the account position cost and the account activity during that month. At year end, clients will receive an annual cost disclosure report that will show the charges and other compensation, in dollars, that Corex was paid for the products and services it provided, as well as an annual investment performance report that covers: deposits into, and withdrawals from, the client’s account; the change in value of the account; and the percentage returns for the previous year.

Determining Customer Suitability and Assigning a Portfolio

Corex is required to conduct a comprehensive Know Your Client (“KYC”) process that, combined with a parallel Know Your Product (“KYP”) process, allows Corex to conduct a thorough suitability assessment in the context of establishing a discretionary portfolio management relationship with its clients. Corex’s obligation is that any investment action Corex takes, recommends or decides on, for the client is suitable for the client and puts the client’s best interests first. As such, each client is required to have a Suitability Score (the “OneScore”) associated with their profile.

The scoring process is automated and is an algorithmic function that considers multiple factors to determine investment product suitability for each customer and their goals (i.e. data from both KYC and KYP).

Ongoing suitability is provided as part of the managed account services. For clients who make direct purchases of Corex’s investment funds, the suitability determination is made at the time of purchase.

The Information Corex Has Collected Under Its KYC Obligations

Corex clients need to let Corex know if there are significant changes in their circumstances. All clients must carefully review all documentation they receive from Corex. This includes:

• Client Account Agreement
• Discretionary Management form
• Corex Relationship Disclosure Document
• Investment Policy Statement
• Corex Fee Schedule
• Electronic Delivery Document
• W-BEN form - EITHER;
  • Canadian version: W-8BEN form
  • American tax residents version: W-9BEN form and a Waiver of Confidentiality form
• Depending upon the type of account, customers will be required to review and sign the additional account opening forms. This may include:
  • Cash Account - General Account Opening form
  • TFSA - TFSA form
  • RRSP - RRSP form
  • Other accounts you elect to open with us

Optionally for every account, customers can submit the following:

• Registered Plan Beneficiary Designation form
• Contingency Beneficiary Designation form

While not required, these forms will be encouraged to ensure that the customer’s assets are protected. In some cases a wet signature may be required.

Any error, issue or concern relating to this documentation should be raised immediately with Corex.

Communication

Corex will communicate with you by electronic means via post to your online account. If you need to contact Corex you can email Corex directly.

Impact of Fees on Investment Returns

Ongoing fees can reduce the value of your investment portfolio. This is particularly true over time, because not only is your investment balance reduced by the fee, but you also lose any return you would have earned on that fee. Over time, even ongoing fees that are small can have an impact on the value of your investment portfolio.

Allocation Fairness Policy

Corex confirms that in the event that securities are purchased for the accounts of more than one client of Corex and an insufficient number of securities are available to satisfy the purchase order, the securities available will be allocated to the extent possible pro rata to the size of your accounts, taking into consideration your IPS.

Investment Performance Benchmarks

Investment performance benchmarks (indices) may be used to assess performance of a client's investment holdings. While consideration may be given to several other quantitative and qualitative factors when measuring performance, benchmark risk and return often provide a broad-based scope to gauge expected risk and return ranges of investments. Investors cannot invest in an index benchmark without incurring fees, expenses and commissions, which are not reflected in the benchmark return. Past performance is not necessarily indicative of future performance and the risk associated with a particular investment can change over time.

CANADA'S ANTI SPAM LEGISLATION

Under Canada’s anti-spam legislation, Corex is required to obtain your consent to send you emails and other electronic messages. We will generally seek this consent from you at the time you open your account. You may withdraw your consent at any time.

TAX INFORMATION

Under Part XVIII of the Income Tax Act (Canada) and Part XIX of the Income Tax Act (Canada), COREX is required to identify certain clients that have a connection to foreign jurisdictions, and are required to report information about those clients to the Canada Revenue Agency (the “CRA”). The CRA will provide the information to the tax authorities in the relevant foreign jurisdiction if the foreign government has entered into an agreement with Canada for the exchange of financial information. In order to comply with these requirements, we will collect certain information from you at the time you open your account and at other times as needed.

Issues and Complaint Handling Procedures

We have created a process for dealing with issues that we believe is both effective and efficient. We expect every Corex employee who receives a customer issue to take ownership, and ensure that the issue is resolved quickly. If you have an issue, we encourage you to follow the issue procedure outlined here.

• In most cases, an issue is resolved simply by telling us about it. You should be able to get swift results by talking to our employees.
• If the problem is not resolved to your satisfaction, you can submit a complaint by contacting Corex’s Compliance Officer at [phone], [e-mail], or in writing to Box 48421, 1055 Dunsmuir Street, Vancouver, BC, V7X 1A2

If Corex receives a complaint from you relating to trading or advising activities provided by us or a representative of our firm, we will provide you with a written acknowledgement of the complaint containing the following information:

1. a description of our obligation, if any, under National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations to make an independent dispute resolution or mediation service available to you;
2. the steps that you are required to take in order for an independent dispute resolution or mediation service to be made available to you; and
3. the name of the independent dispute resolution or mediation service that will be made available to you and contact information for the service.

In addition, if Corex decides to reject a complaint or to make an offer to resolve a complaint, we will provide you with written notice of that decision.

Corex will make an independent dispute resolution or mediation service available to you at our expense if:

1. after 90 days of our receipt of the complaint, we have not given you written notice of our decision in respect of the complaint and you have notified the independent dispute resolution or mediation service specified by us that you wish to have the complaint considered by the service; or
2. within 180 days of your receipt of written notice of our decision in respect of the complaint, you have notified the independent dispute resolution or mediation service specified by us that you wish to have the complaint considered by the service.

There are limitations on your ability to have a complaint resolved at our expense by an independent dispute resolution or mediation service. Corex is only required to follow this procedure if the complaint is received by us within six years of the day when you first knew or reasonably ought to have known of an act or omission that is a cause of or contributed to the complaint. Also, you must agree that, for the purpose of the independent service’s consideration of the complaint, the amount claimed (if any) will be no greater than $350,000.

Corex may follow other procedures in relation to a complaint made by a “permitted client” within the meaning of applicable securities laws that is not an individual.

Further information regarding these matters is attached as Schedule A.

Corex Financial Inc. is registered as a Portfolio Manager in each of the provinces and territories of Canada and is registered as an Investment Fund Manager in the provinces of Alberta, Ontario, Quebec and Newfoundland and Labrador.

Copyright © 2026, Corex Financial Inc. All rights reserved.

SCHEDULE A – WHAT TO DO IF YOU HAVE A COMPLAINT

Filing a complaint with us:

If you have a complaint about our services or a product, contact us at:

Corex Financial Solutions Inc.

Box 48421, 1055 Dunsmuir Street

Vancouver BC, V7X-1A2

 Email: [e-mail]

Tell us:

1. what went wrong;
2. when it happened; and
3. what you expect, for example, money back, an apology, account correction.

Help us resolve your complaint sooner Make your complaint as soon as possible.Reply promptly if we ask you for more information.Keep copies of all relevant documents, such as letters, emails and notes of conversations with us.   We will acknowledge your complaint:

We will acknowledge your complaint in writing, as soon as possible, typically within five business days of receiving your complaint. We may ask you to provide clarification or more information to help us resolve your complaint.

We will provide our decision:

We normally provide our decision in writing, within 90 days of receiving a complaint. It will include:

1. a summary of the complaint;
2. the results of our investigation; and
3. our decision to make an offer to resolve the complaint or deny it; and an explanation of our decision.

If our decision is delayed:

If we cannot provide you with our decision within 90 days, we will:

1. A word about legal advice You always have the right to go to a lawyer        or seek other ways of resolving your dispute at any time. A lawyer can advise you of your options. There are time limits for taking  legal action. Delays could limit your options  and legal rights later on.     inform you of the delay;
2. explain why our decision is delayed; and
3. give you a new date for our decision.

You may be eligible for the independent dispute resolution service offered by the Ombudsman for Banking Services and Investments (OBSI).

If you are not satisfied with our decision:

You may be eligible for OBSI’s dispute resolution service.

If you are a Québec resident:

You may consider the free mediation service offered by the Autorité des marchés financiers.

Taking your complaint to OBSI:

You may be eligible for OBSI’s free and independent dispute resolution service if:

1. we do not provide our decision within 90 days after you made your complaint; or
2. you are not satisfied with our decision.

OBSI can recommend compensation of up to $350,000.

OBSI’s service is available to clients of our firm. This does not restrict your ability to take a complaint to a dispute resolution service of your choosing at your own expense, or to bring an action in court. Keep in mind there are time limits for taking legal action.

Who can use OBSI:

You have the right to use OBSI’s service if:

1. your complaint relates to a trading or advising activity of our firm or by one of our representatives;
2. you brought your complaint to us within 6 years from the time that you first knew, or ought to have known, about the event that caused the complaint; and
3. you file your complaint with OBSI according to its time limits below.

Time limits apply:

1. If we do not provide you with our decision within 90 days, you can take your complaint to OBSI any time after the 90-day period has ended.
2. If you are not satisfied with our decision, you have up to 180 days after we provide you with our decision to take your complaint to OBSI.

Information OBSI needs to help you Filing a complaint with OBSI:

Contact OBSI

Email: [e-mail]

Telephone: [phone] or 416-287-2877 in Toronto

OBSI will investigate:

OBSI works confidentially and in an informal manner.

It is not like going to court, and you do not need a lawyer.

During its investigation, OBSI may interview you and representatives of our firm. We are required to cooperate in OBSI’s investigations.

OBSI will provide its recommendations:

Once OBSI has completed its investigation, it will provide its recommendations to you and us. OBSI’s recommendations are not binding on you or us.

OBSI can recommend compensation of up to $350,000. If your claim is higher, you will have to agree to that limit on any compensation you seek through OBSI. If you want to recover more than $350,000, you may want to consider another option, such as legal action, to resolve your complaint.

For more information about OBSI, visit www.obsi.ca.