Securities Law & Instruments












WHEREASthe Canadian securities regulatory authority or regulator (the"Decision Makers") in each of the provinces of British Columbia,Alberta, Saskatchewan, Ontario, Nova Scotia, Newfoundland andLabrador (collectively, the "Jurisdictions") have received anapplication (the "Application") from Scotia Securities Inc. ("SSI"),in its capacity as trustee and manager of the Scotia CanadianStock Index Fund (the " Index Fund"), for a decision pursuantto the securities legislation of the Jurisdictions (the "Legislation")that the restrictions contained in the Legislation prohibitinga mutual fund from knowingly making or holding an investment inany person or company who is a substantial security holder ofthe mutual fund, its management company or distribution company(together, the "Restrictions"), shall not apply in respect ofinvestments made by the Index Fund;

ANDWHEREAS pursuant to the Mutual Reliance Review System("MRRS") for Exemptive Relief Applications (the "System"), theOntario Securities Commission is the principal regulator for thisApplication;

ANDWHEREAS SSI has represented to the Decision Makers that:

1.SSI is a corporation incorporated under the laws of the Provinceof Ontario and is a wholly owned subsidiary of The Bank of NovaScotia ("BNS"). SSI is the trustee and manager of the Index Fund.

2.The Index Fund is an open-end mutual fund trust established underthe laws of the Province of Ontario. The Index Fund is a reportingissuer under the securities legislation of each Jurisdiction andunits of the Index Fund are qualified for distribution under asimplified prospectus and annual information form dated December3, 2001, as amended, and accepted by the Decision Makers in eachof the Jurisdictions.

3.The portfolio advisor of the Index Fund is currently BarclaysGlobal Investors Canada Limited ("Barclays"). On March 1, 2002,the portfolio advisor of the Index Fund will be State Street GlobalAdvisors, Ltd. ("State Street"). Barclays and State Street (eacha "Portfolio Advisor") are not related companies of BNS.

4.The investment objective of the Index Fund is long-term capitalgrowth by tracking the performance of a generally recognized Canadianequity index, currently The Toronto Stock Exchange 300 Total ReturnIndex (the "Target Index"). In order to achieve its investmentobjective, the Index Fund's primary investment strategy is toinvest all of its assets directly in the securities of companiesincluded in the Target Index in substantially the same proportionas such securities are weighted in the Target Index.

5.The Fund is an index mutual fund as defined in National Instrument81-102 Mutual Funds ("NI 81-102").

6.Among the securities comprising the Target Index are common sharesof BNS.

7.Due to the Restrictions, the Index Fund has not, while under themanagement of SSI, invested in common shares of BNS. It has insteadinvested in alternate securities to attempt to match the performanceand risk composition of the Target Index.

8.The portfolio of the Index Fund is not actively managed. The portfoliois passive and is comprised of securities comprising the TargetIndex. Purchases and sales of portfolio securities of the Fundwill be determined by the composition of the Target Index andthe weightings therein of the constituent securities.

9.The deviation from the Restrictions will not be the result ofany active decision of SSI or the Index Fund's Portfolio Advisorto increase the investment of the Index Fund in any particularissuer, but rather an indirect consequence of carrying out theinvestment objective of the Index Fund to match the performanceof the Target Index.

10.The investments by the Index Fund in common shares of BNS representthe business judgment of responsible persons uninfluenced by considerationsother than the best interests of the Index Fund.

ANDWHEREAS pursuant to the System, this MRRS Decision Documentevidences the decision of each Decision Maker (collectively, the"Decision");

ANDWHEREAS each of the Decision Makers is satisfied thatthe test contained in the Legislation that provides the DecisionMaker with the jurisdiction to make the Decision has been met;

THEDECISION of the Decision Makers pursuant to the Legislationis that the Restrictions do not apply to the investment by theIndex Fund in securities of BNS;

PROVIDEDTHAT at the time of each investment made in common sharesof BNS pursuant to this Decision, the following conditions aresatisfied:

i.the Target Index, and any successor index to the Target Index,is a "permitted index" as such term is defined in section 1.1of NI 81-102; and

ii.the proportion of the Index Fund's assets to be invested in commonshares of BNS is determined in accordance with the Index Fund'sstated investment strategy of investing in the constituent securitiesof the Target Index in substantially the same proportion as suchsecurities are weighted in that index, and not pursuant to thediscretion of SSI or the Index Fund's Portfolio Advisor.

March12, 2002.

"R.Stephen Paddon"       "H. Lorne Morphy"