CI Mutual Funds Inc., AGF Funds Inc., Investors Group, and AIC Ltd. today confirmed that each firm received a letter yesterday from the Ontario Securities Commission in connection with the regulator’s ongoing review of trading practices in the mutual fund industry.

The OSC has stated the results to date have found no indication of late trading and that the industry now has in place effective measures to prohibit the practice of market timing.

The four firms said they have been fully cooperating with OSC staff in all phases of the review since it began in November 2003.

In its letter, OSC expressed a concern that the firms may have acted contrary to the public interest in permitting frequent trading to occur in certain accounts over the period October 1999 to September 2003, for CI, and the period of August 2000, to July 2003 for AGF. For Investors Group, the period under review is between March 2000 and
September 2003

The OSC said that it is contemplating proceedings against the four fims as a result of this concern.

In a release, CI said is carefully reviewing the concerns raised by Staff in its letter and expects to respond promptly.

AGF said it will be discussing with the OSC over the next two weeks why no further steps are warranted. The firm said it now has in place effective measures to prohibit the practice of market timing.

“AGF is pleased with the findings on late trading and will continue to take appropriate measures to protect against market timing,” said Pat Phillips, vp, communications, AGF.

AIC Ltd. also comfirmed it received a letter from the OSC. The firm said the OSC letter identified concerns with frequent trading activity that occurred from January 1999 to October 2003.

As part of its ongoing review, the OSC has also stated that it continues to conduct site reviews at other fund companies.