CI operates in a highly competitive environment, with competition based on a variety of factors, including the range  of products offered, brand recognition, investment performance, business reputation, financing strength, the strength  and continuity of institutional, management and sales relationships, quality of service, level of fees charged and level  of commissions and other compensation paid. CI competes with a large number of mutual fund companies and other  providers of investment products, investment management firms, broker-dealers, banks, insurance companies and other  financial institutions. Some of these competitors have greater capital and other resources, and offer more comprehensive  lines of products and services than CI. The trend toward greater consolidation within the investment management  industry has increased the strength of a number of CI’s competitors. Additionally, there are few barriers to entry by new  investment management firms, and the successful efforts of new entrants have resulted in increased competition. CI’s  competitors seek to expand market share by offering different products and services than those offered by CI. While CI  continues to develop and market new products and services, there can be no assurance that CI will maintain its current  standing or market share, and that may adversely affect the business, financial condition or operating results of CI. Certain subsidiaries of CI are heavily regulated in all jurisdictions where they carry on business. Laws and regulations  applied at the national and provincial level generally grant governmental agencies and self-regulatory bodies broad  administrative discretion over the activities of CI, including the power to limit or restrict business activities as well as  impose additional disclosure requirements on CI products and services. Possible sanctions include the revocation or  imposition of conditions on licenses to operate certain businesses, the suspension or expulsion from a particular market  or jurisdiction of any of CI’s business segments or its key personnel or financial advisors, and the imposition of fi nes and  censures. It is also possible that the laws and regulations governing a subsidiary’s operations or particular investment  products or services could be amended or interpreted in a manner that is adverse to CI. To the extent that existing or  future regulations affecting the sale or offering of CI’s product or services or CI’s investment strategies cause or contribute  to reduced sales of CI’s products or lower margins or impair the investment performance of CI’s products, CI’s aggregate  assets under management and its revenues may be adversely affected. Certain subsidiaries of CI are subject to minimum regulatory capital requirements. This may require CI to keep suffi cient cash  and other liquid assets on hand to maintain capital requirements rather than using them in connection with its business.  Failure to maintain required regulatory capital by CI may subject it to fines, suspension or revocation of registration by  the relevant securities regulator. A signifi cant operating loss by a registrant subsidiary or an unusually large charge against  regulatory capital could adversely affect the ability of CI to expand or even maintain its present level of business, which  could have a material adverse effect on CI’s business, results of operations, financial condition and prospects. Given the nature of CI’s business, CI may from time to time be subject to claims or complaints from investors or others  in the normal course of business. The legal risks facing CI, its directors, officers, employees or agents in this respect  include potential liability for violations of securities laws, breach of fiduciary duty and misuse of investors’ funds. Some  violations of securities laws and breach of fi duciary duty could result in civil liability, fi nes, sanctions, or expulsion from a  self-regulatory organization or the suspension or revocation of CI’s subsidiaries’ right to carry on their existing business. CI  may incur significant costs in connection with such potential liabilities. 42 REGULATORY AND LEGAL RISK COMPETITION 