Scotia Mutual Funds has been granted approval to invest in the common shares of The Bank of Nova Scotia (TSX: BNS) as long as an independent board of advisors monitors these investments.

Scotia Securities Inc., the manager of the funds, made the announcement today.

On October 28, 2004, Scotia Securities announced the establishment of an independent board of advisors to oversee certain aspects of the operations of the funds. The board has three independent members, Eric Kirzner (chairman), Rob Bell, and Murray Paton.

The mandate of the advisory boards includes the review of decisions made on behalf of the funds to invest in Scotiabank common shares in order to be satisfied that the decisions to buy, sell or hold the shares represent the judgment of the portfolio manager, uninfluenced by considerations other than the best interests of the funds. The board will review the funds’ purchases, sales and continued holdings of Scotiabank stock at least once per calendar quarter.