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<SEC-DOCUMENT>0000791963-03-000007.txt : 20030319
<SEC-HEADER>0000791963-03-000007.hdr.sgml : 20030319
<ACCEPTANCE-DATETIME>20030319101640
ACCESSION NUMBER:		0000791963-03-000007
CONFORMED SUBMISSION TYPE:	PRE 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20021231
FILED AS OF DATE:		20030319

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FAHNESTOCK VINER HOLDINGS INC
		CENTRAL INDEX KEY:			0000791963
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
		IRS NUMBER:				980080034
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12043
		FILM NUMBER:		03608538

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 1110, P.O. BOX 2015
		STREET 2:		20 EGLINTON AVE. WEST
		CITY:			TORONTO ONTARIO CANADA
		STATE:			A0
		ZIP:			M4R 1K8
		BUSINESS PHONE:		(416)322-1515

	MAIL ADDRESS:	
		STREET 1:		PO BOX 2015 SUITE 1110
		STREET 2:		20 EGLINTON AVENUE WEST
		CITY:			TORONTO ONTARIO CANADA
		STATE:			A6
		ZIP:			M4R 1K8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GOLDALE INVESTMENTS LTD
		DATE OF NAME CHANGE:	19861030

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VINER E A HOLDINGS LTD
		DATE OF NAME CHANGE:	19880622
</SEC-HEADER>
<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>proxy2.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>


<body bgcolor="#FFFFFF">

<p align="center"><font size="2"><b>SECURITIES AND EXCHANGE
COMMISSION</b></font></p>

<p align="center"><font size="2"><b>WASHINGTON, D.C. 20549</b></font></p>

<p align="center"><font size="2"><b>SCHEDULE 14A</b></font></p>

<p align="center"><font size="2"><b>(Rule 14a-101)</b></font></p>

<p align="center"><font size="2"><b>INFORMATION REQUIRED IN PROXY
STATEMENT</b></font></p>

<p align="center"><font size="2"><b>SCHEDULE 14A INFORMATION</b></font></p>

<p><font size="2">Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934</font></p>

<table border="0" cellpadding="7" cellspacing="0" width="523">
    <tr>
        <td valign="top" width="45%"><font size="2">Filed by the
        Registrant  X</font></td>
        <td valign="top" width="24<font size="2"> </font></td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="45%"><font size="2">Filed by a
        Party other than the Registrant </font></td>
        <td valign="top" width="24%"><font size="2"> </font></td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
</table>

<p><font size="2">Check the appropriate box:</font></p>

<table border="0" cellpadding="7" cellspacing="0" width="601">
    <tr>
        <td valign="top" width="7%">
        <font size="2"> </font></td>
        <td valign="top" width="37%"><font size="2">X  Preliminary
        Proxy Statement</font></td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="6%"><font size="2"> </font></td>
        <td valign="top" width="40%"><font size="2">Confidential,
        For Use of the </font></td>
    </tr>
    <tr>
        <td valign="top" width="7%"><font size="2"> </font></td>
        <td valign="top" width="37%"><font size="2">Definitive
        Proxy Statement</font></td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="40%"><font size="2">Commission
        Only (as permitted by </font></td>
    </tr>
    <tr>
        <td valign="top" width="7%"><font size="2"> </font></td>
        <td valign="top" width="37%"><font size="2">Definitive
        Additional Materials</font></td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="40%"><font size="2">Rule
        14a6(e)(2))</font></td>
    </tr>
    <tr>

        <td valign="top" width="37%"><font size="2">Soliciting
        Material Pursuant to</font></td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="40%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="37%"><font size="2">Rule
        14a-11(c) or Rule 14a-12</font></td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="40%">&nbsp;</td>
    </tr>
</table>

<p align="center"><font size="2"><b>FAHNESTOCK VINER HOLDINGS
INC.</b></font></p>

<p align="center"><font size="2"><i>(Name of Registrant as
Specified in Its Charter)</i></font></p>

<p align="center">&nbsp;</p>

<p align="center"><font size="2"><i>(Name of Person(s) Filing
Proxy Statement, if Other Than the Registrant)</i></font></p>

<p><font size="2">Payment of Filing Fee (Check the appropriate
box):</font></p>

<table border="1" cellpadding="7" cellspacing="1" width="686">
    <tr>
        <td valign="top"><font
        size="2">X  No fee required.</font></td>
    </tr>
    <tr>
        <td valign="top">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top"><font
        size="2"> Fee computed on table below per Exchange Act
        Rules 14a-6(i)(1) and 0-11. </font></td>
    </tr>
    <tr>
        <td valign="top">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top"><font size="2"><i>Title of each class of
        securities to which transaction applies:</i></font></td>
    </tr>
    <tr>
        <td valign="top"><font size="2"><i>Aggregate number of
        securities to which transaction applies:</i></font></td>
    </tr>
    <tr>
        <td valign="top"><font size="2"><i>Per unit price or
        other underlying value of transaction computed pursuant
        to Exchange Act Rule 0-11 (set forth the amount on which
        the filing fee is calculated and state how it was
        determined):</i></font></td>
    </tr>
    <tr>
        <td valign="top"><font size="2"><i>Proposed maximum
        aggregate value of transaction:</i></font></td>
    </tr>
    <tr>
        <td valign="top"><font size="2"><i>Total fee paid:</i></font></td>
    </tr>
    <tr>
        <td valign="top">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top"><font
        size="2"> Fee paid previously with preliminary materials:</font></td>
    </tr>
    <tr>
        <td valign="top">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top"><blockquote>
            <blockquote>
                <p><font
                size="2"> Check box if any part of the fee is
                offset as provided by Exchange Act Rule
                0-11(a)(2) and identify the filing for which the
                offsetting fee was paid previously. Identify the
                previous filing by registration number, or the
                form or schedule and the date of its filing.</font></p>
            </blockquote>
        </blockquote>
        </td>
    </tr>
</table>

<blockquote>
    <blockquote>
        <p><font size="2">1. <i>Amount previously paid:</i><i><u>
        </u></i></font></p>
        <p><font size="2">2. <i>Form, Schedule or Registration
        Statement No.:</i><i><u> </u></i></font></p>
        <p><font size="2">3. <i>Filing Party:</i><i><u> </u></i></font></p>
        <p><font size="2">4. <i>Date Filed:</i><i><u> </u></i></font></p>
        <p>&nbsp;</p>
    </blockquote>
</blockquote>

<p align="right"><font size="2"><b>Preliminary Copy for the
Information of <br>
the Securities Exchange Commission<br>
March 18, 2003</b></font></p>

<p align="center"><font size="2"><b>FAHNESTOCK VINER HOLDINGS
INC.</b></font></p>

<p align="center"><font size="2">P.O. Box 2015, Suite 1110</font></p>

<p align="center"><font size="2">20 Eglinton Avenue West</font></p>

<p align="center"><font size="2">Toronto, Ontario</font></p>

<p align="center"><font size="2">M4R 1K8</font></p>

<p align="center"><font size="2"><b>NOTICE OF ANNUAL AND SPECIAL
MEETING OF SHAREHOLDERS</b></font></p>

<p><font size="2">To the Shareholders: </font></p>

<p><font size="2">NOTICE IS HEREBY GIVEN that an Annual and
Special Meeting of Shareholders of FAHNESTOCK VINER HOLDINGS INC.
(the &quot;Corporation&quot;) will be held at The Toronto Board
of Trade Downtown Centre, 4th Floor, 1 First Canadian Place, 77
Adelaide St. West, Toronto, Ontario on May 12, 2003 at the hour
of 4:30 p.m. (Toronto time) for the following purposes:</font></p>

<blockquote>
    <p><font size="2">1. To receive the 2002 Annual Report
    including the consolidated financial statements of the
    Corporation for the year ended December 31, 2002, together
    with the Auditors' Report thereon; </font></p>
    <p><font size="2">2. To appoint PricewaterhouseCoopers LLP as
    auditors of the Corporation and authorize the Directors to
    fix their remuneration; </font></p>
    <p><font size="2">3. To consider and, if deemed advisable,
    pass a special resolution amending the articles of the
    Corporation to change the name of the Corporation to
    Oppenheimer Holdings Inc. </font></p>
    <p><font size="2">4. To consider and, if deemed advisable,
    pass a special resolution amending the articles of the
    Corporation to provide that the Corporation may have a
    minimum of five and a maximum of 15 directors;</font></p>
    <p><font size="2">5. To consider and, if deemed advisable,
    pass a resolution confirming an amendment to the By-Laws of
    the Corporation to provide that the number of Directors of
    the Corporation shall be the number set out in the articles
    of the Corporation;</font></p>
    <p><font size="2">6. To elect Directors;</font></p>
    <p><font size="2">7. To consider, and if deemed advisable,
    pass a resolution approving the conversion of the
    U.S.$90,841,572 Convertible Debenture due 2006 issued by E.A.
    Viner International Co. to Canadian Imperial Bank of Commerce
    into a U.S.$90,841,572 Variable Rate Exchangeable Debenture
    Due 2013 of E.A. Viner International Co.;</font></p>
    <p><font size="2">8. To consider, and if deemed advisable,
    pass a resolution confirming the issue of up to [45,000]
    Class A non-voting shares to managers employed by the
    Oppenheimer Division of Fahnestock &amp; Co. Inc.;</font></p>
</blockquote>

<p><font size="2">9. To consider, and if deemed advisable, pass a
resolution authorizing the issue of up to 200,000 Class A
non-voting shares to the trustees of the Fahnestock &amp; Co.
Inc. 401(k) Plan; and </font></p>

<p><font size="2">10. To transact such other business as is
proper to such meeting or any adjournment thereof. </font></p>

<p><font size="2"><b>Holders of Class A non-voting shares of the
Corporation are entitled to attend and speak at the Annual and
Special Meeting of Shareholders and, with the holders of the
Class B voting shares, are entitled to vote on the resolution
described in item 7 above. Holders of Class A non-voting shares
are not entitled to vote with respect to the other matters
referred to above.</b></font></p>

<p><font size="2">Holders of Class A non-voting shares and Class
B voting shares who are unable to attend the meeting in person
are required to date, sign and return the enclosed forms of proxy
for use by holders of Class A non-voting shares and Class B
voting shares.</font></p>

<p><font size="2">Reference is made to the accompanying
Management Information Circular for details of the matters to be
acted upon at the meeting and with respect to the respective
voting rights of the holders of the Class A non-voting shares and
the Class B voting shares.</font></p>

<p><font size="2">DATED at Toronto, Ontario this 17<sup>th</sup>
day of March, 2003. </font></p>

<p align="right"><font size="2">A.W. OUGHTRED<br>
Secretary</font></p>

<p align="right">&nbsp;</p>

<p align="right"><font size="2"><b>Preliminary Copy for the
Information of <br>
the Securities Exchange Commission<br>
March 18, 2003</b></font></p>

<p align="center"><font size="2"><b>FAHNESTOCK VINER HOLDINGS
INC.</b></font></p>

<p align="center"><font size="2"><b>MANAGEMENT INFORMATION
CIRCULAR</b></font></p>

<p align="center"><font size="2">(Note: All dollar amounts
expressed herein are U.S. dollars unless otherwise indicated)</font></p>

<p><font size="2"><b>This Management Information Circular is
forwarded to holders of Class B voting shares (the &quot;Class B
Shares&quot;) and Class A non-voting shares (the &quot;Class A
Shares&quot;) of Fahnestock Viner Holdings Inc. (the
&quot;Corporation&quot;) in connection with the solicitation of
proxies by the management of the Corporation from the holders of
the Class B Shares and the Class A Shares for use at the Annual
and Special Meeting of Shareholders of the Corporation (the
&quot;Meeting&quot;) to be held on May 12, 2003, at the hour of
4:30 p.m. (Toronto time) at The Toronto Board of Trade Downtown
Centre, 4th Floor, 1 First Canadian Place, 77 Adelaide St. West,
Toronto, Ontario and at any adjournments thereof for the purposes
set forth in the Notice of Annual and Special Meeting of
Shareholders (the &quot;Notice of Meeting&quot;) which
accompanies this Management Information Circular. This Management
Information Circular is dated March 17, 2003 and is first being
mailed to Shareholders on or about March 28, 2003.</b></font></p>

<p><font size="2">The record date for the determination of
shareholders entitled to receive notice of the meeting is March
25, 2003. In accordance with the provisions of the Business
Corporations Act (Ontario) the Corporation will prepare a list of
holders of Class A Shares and Class B Shares as of the record
date. Each holder of Class A Shares and Class B Shares named in
the list will be entitled to vote the Class A Shares (on the
matter on which the holders of Class A Shares may vote) and the
Class B Shares shown opposite the shareholder's name on the list
at the Meeting except to the extent that (a) the shareholder has
transferred any of the shareholder's Class A or Class B Shares
after the record date and (b) the transferee of those shares
produces properly endorsed share certificates or otherwise
establishes that the transferee owns such shares and demands, not
later than immediately before a vote on any matter, that the
transferee's name be included in the list, in which case the
transferee of the Class A or Class B Shares will be entitled to
vote such shares at the Meeting.</font></p>

<p><font size="2">It is planned that the solicitation will be
initially by mail, but proxies may also be solicited by employees
of the Corporation. The cost of such solicitation will be borne
by the Corporation.</font></p>

<p><font size="2">No person is authorized to give any information
or to make any representation other than those contained in this
circular and, if given or made, such information or
representation should not be relied upon as having been
authorized by the Corporation. The delivery of this Circular
shall not, under any circumstances, create an implication that
there has not been any change in the information set forth herein
since the date of this circular. Except as otherwise stated, the
information contained in this circular is given as of March 17,
2003.</font></p>

<p><font size="2">The Corporation has distributed copies of the
Notice of the Meeting, this Circular, the enclosed forms of proxy
for use by the holders of Class A Shares and Class B Shares and
its Annual Report for the year ended December 31, 2002 to
intermediaries such as clearing agencies, securities dealers,
banks and trust companies or their nominees for distribution to
non-registered shareholders of the Corporation whose shares are
held by or in the custody of such intermediaries. Intermediaries
are required to forward these documents to non-registered
shareholders. The solicitation of proxies from non-registered
holders of Class A and Class B Shares will be carried out by the
intermediaries, or by the Corporation if the names and addresses
of non-registered holders of Class A and Class B Shares are
provided by the intermediaries. The cost of such solicitation
will be borne by the Corporation. Non-registered holders of Class
A and Class B Shares who wish to file proxies should follow the
instructions of their intermediary with respect to the procedure
to be followed. Generally, non-registered holders of Class A and
Class B Shares will either: (a) be provided with a proxy executed
by the intermediary, as the registered shareholder, but otherwise
uncompleted and the non-registered holder may complete the proxy
and return it directly to the Corporation's transfer agent; or
(b) be provided with a request for voting instructions by the
intermediary, as the registered shareholder, then the
intermediary must send to the Corporation's transfer agent an
executed proxy form completed in accordance with any voting
instructions received by it from the non-registered holder and
may not vote in the event that no instructions are received.</font></p>

<p align="center">&nbsp;</p>

<p align="center"><font size="2"><b>CLASS A NON-VOTING SHARES AND
CLASS B VOTING SHARES</b></font></p>

<p><font size="2">The Corporation has authorized and issued Class
A Shares and Class B Shares which are equal in all respects
except that holders of Class A Shares (the &quot;Class A
Shareholders&quot;), as such, are not entitled to vote at
meetings of shareholders of the Corporation unless entitled to
vote by law or pursuant to the Corporation's articles. As
explained under the heading &quot;Conversion of E.A. Viner
International Convertible Debenture&quot; below, Class A
Shareholders are entitled to vote with the holders of Class B
Shares (&quot;Class B Shareholders&quot;) on the resolution
referred to in item 7 in the Notice of this Meeting. Class A
Shareholders are not entitled to vote the Class A Shares owned or
controlled by them on the other matters identified in the Notice
of Meeting to be voted on. Where entitled to vote, the Class A
Shareholders are entitled to one vote for each Class A Share
held.</font></p>

<p><font size="2">Generally, Class A Shareholders are entitled to
receive notices of all meetings of shareholders of the
Corporation and to attend and speak at such meetings. In addition
to notices of shareholders' meetings, Class A Shareholders are
entitled to receive all informational documentation sent to the
Class B Shareholders of the Corporation.</font></p>

<p><font size="2">Class B Shareholders of the Corporation are
entitled to one vote for each Class B Share held at all meetings
of shareholders except meetings at which only the holders of a
specified class of shares other than the Class B Shares are
entitled to vote.</font></p>

<p><font size="2"><b>In the event of either a &quot;take-over
bid&quot; or an &quot;issuer bid&quot; (as those expressions are
defined in the Securities Act of Ontario) being made for the
Class B Shares and no corresponding offer being made to purchase
Class A Shares, the Class A Shareholders would have no right
under the articles of incorporation of the Corporation or under
any applicable statute to require that a similar offer be made to
them to purchase their Class A Shares.</b></font></p>

<p>&nbsp;</p>

<p align="center"><font size="2"><b>APPOINTMENT AND REVOCATION OF
PROXIES</b></font></p>

<p><font size="2">The persons named in the enclosed forms of
proxy (the &quot;Management Nominees&quot;) are directors and
officers of the Corporation.</font></p>

<p><font size="2"><b>A Class A Shareholder and a Class B
Shareholder has the right to appoint a person, other than the
Management Nominees, who need not be a shareholder to represent
them at the Meeting. To exercise this right the Shareholder may
insert the name of the desired person in the blank space provided
in the applicable form of proxy accompanying this Circular or may
submit another form of proxy.</b></font></p>

<p><font size="2"><b>Class B Shares represented by properly
executed proxies will be voted by the Management Nominees on any
ballot that may be called for, unless the shareholder has
directed otherwise, (i) for the appointment of auditors and
authorizing the directors to fix the remuneration of the auditors
(item 2 in the Notice of Meeting), (ii) for the special
resolution amending the articles of the Corporation to change the
name of the Corporation (item 3 in the Notice of Meeting), (iii)
for the special resolution amending the articles of the
Corporation to change the number of directors of the Corporation
(item 4 in the Notice of Meeting), (iv) for the resolution
amending the By-Laws of the Corporation (item 5 in the Notice of
Meeting), (v) for the election of Directors (item 6 in the Notice
of Meeting), (vi) for the resolution approving the conversion of
the Convertible Debenture of E.A. Viner International Co. (item 7
in the Notice of Meeting), (vii) for the resolution confirming
the issue of up to [45,000] Class A Shares to Managers of the
Oppenheimer Division of Fahnestock &amp; Co. Inc. (item 8 in the
Notice of Meeting), and (viii) for the resolution authorizing the
issue of Class A Shares to the trustees of the Fahnestock
&amp;Co. Inc. 401(k) Plan (item 9 in the Notice of Meeting).</b></font></p>

<p><font size="2"><b>Class A Shares represented by properly
executed proxies will be voted by the Management Nominees on any
ballot that may be called for, unless the shareholder has
directed otherwise, for the resolution approving the conversion
of the Convertible Debenture of E.A. Viner International Co.
(item 7 in the Notice of Meeting).</b></font></p>

<p><font size="2">It is not intended to use the proxies hereby
solicited for the purpose of voting upon the consolidated
financial statements of the Corporation for the year ended
December 31, 2002, or the reports of the auditors and directors
thereon.</font></p>

<p><font size="2">Each form of proxy confers discretionary
authority with respect to amendments or variations to matters
identified in the Notice of Meeting to which the proxy relates
and other matters which may properly come before such Meeting.
Management knows of no matters to come before the Meeting other
than the matters referred to in the Notice of Meeting. However,
if matters which are not known to the management should properly
come before the Meeting, the proxies will be voted on such
matters in accordance with the best judgment of the person or
persons voting the proxies.</font></p>

<p><font size="2">A shareholder who has given a proxy has the
power to revoke it prior to the commencement of the Meeting by
depositing an instrument in writing executed by the shareholder
or by the shareholder's attorney authorized in writing either at
the registered office of the Corporation at any time up to and
including the last business day preceding the day of the Meeting,
or any adjournment thereof, or with the Chairman of the Meeting
on the day of the Meeting or any adjournment thereof or in any
other manner permitted by law. A shareholder who has given a
proxy has the power to revoke it after the commencement of the
Meeting as to any matter on which a vote has not been cast under
the proxy by delivering written notice of revocation to the
Chairman of the Meeting.</font></p>

<p><font size="2">A shareholder who has given a proxy may also
revoke it by signing a form of proxy bearing a later date and
returning such proxy to the Secretary of the Corporation prior to
the commencement of the Meeting.</font></p>

<p align="center"><font size="2"><b>SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGMENT</b></font></p>

<p><font size="2">The authorized capital of the Corporation
includes an unlimited number of Class A Shares of which
12,665,851 Class A Shares are issued and outstanding and may be
voted at the Meeting (on item 7 in the Notice of Meeting) and
99,680 Class B Shares all of which are issued and outstanding and
may be voted at the Meeting.</font></p>

<p><font size="2">The following table sets forth certain
information regarding the benficial ownership of each class of
securities of the Corporation as at the record date [ March 25,
2003 ], with respect to (i) each person known by the Corporation
to be the beneficial owner of more than 5% of any class of the
Corporation's stock, (ii) each of the Corporation's directors,
(iii) each of the Corporation's executive officers named in the
Summary Compensation Table set forth herein and (iv) the
directors and officers as a group.</font></p>

<table border="0">
    <tr>
        <td>Name and Addess of Beneficial Owner</td>
        <td align="right" colspan="2">Class A Shares (1) </td>
        <td align="right" colspan="2">Class B Shares</td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td align="right">Shares</td>
        <td align="right">%</td>
        <td align="right">Shares</td>
        <td align="right">%</td>
    </tr>
    <tr>
        <td><font size="2">Private Capital Management, L.P<br>
        8889 Pelican Bay Boulevard<br>
        Suite 500<br>
        Naples, Florida 34108<br>
        U.S.A.</font></td>
        <td align="right"><font size="2">4,365,090</font></td>
        <td align="right"><font size="2">34.5%</font></td>
        <td align="right"><p align="center">-</p>
        </td>
        <td align="right"><p align="center">-</p>
        </td>
    </tr>
    <tr>
        <td><font size="2">AIC Limited<br>
        1375 Kerns Road<br>
        Burlington, Ontario L7R 4X8<br>
        Canada</font></td>
        <td align="right"><font size="2">1,837,800</font></td>
        <td align="right"><font size="2">14.5%</font></td>
        <td align="right"><p align="center">-</p>
        </td>
        <td align="right"><p align="center">-</p>
        </td>
    </tr>
    <tr>
        <td><font size="2">Olga Roberts<br>
        20 Eglinton Avenue West<br>
        Suite 1110<br>
        Toronto, Ontario M4R 1K8<br>
        Canada</font></td>
        <td align="right"><font size="2">324,955</font></td>
        <td align="right"><font size="2">2.6%</font></td>
        <td align="right"><font size="2">44,309</font></td>
        <td align="right"><font size="2">44.4%</font></td>
    </tr>
    <tr>
        <td><font size="2">Albert G. Lowenthal<br>
        125 Broad Street<br>
        16th Floor<br>
        New York, N.Y. 10004<br>
        U.S.A.</font></td>
        <td align="right"><font size="2">2,726,113</font></td>
        <td align="right"><font size="2">21.3%</font></td>
        <td align="right"><font size="2">50,490</font></td>
        <td align="right"><font size="2">50.6%</font></td>
    </tr>
    <tr>
        <td><font size="2">J.L Bitove</font></td>
        <td align="right"><font size="2">50,580</font></td>
        <td align="right"><font size="2">*</font></td>
        <td align="right"><font size="2">20</font></td>
        <td align="right"><font size="2">*</font></td>
    </tr>
    <tr>
        <td><font size="2">R. Crystal</font></td>
        <td align="right"><font size="2">7,700</font></td>
        <td align="right"><font size="2">*</font></td>
        <td align="right"><font size="2">-</font></td>
        <td align="right"><font size="2">-</font></td>
    </tr>
    <tr>
        <td><font size="2">R. Maimone</font></td>
        <td align="right"><font size="2">49,492</font></td>
        <td align="right"><font size="2">*</font></td>
        <td align="right"><font size="2">-</font></td>
        <td align="right"><font size="2">-</font></td>
    </tr>
    <tr>
        <td><font size="2">K.W. McArthur</font></td>
        <td align="right"><font size="2">50,000</font></td>
        <td align="right"><font size="2">*</font></td>
        <td align="right"><font size="2">-</font></td>
        <td align="right"><font size="2">-</font></td>
    </tr>
    <tr>
        <td><p align="left"><font size="2">R. Neuhoff</font></p>
        </td>
        <td><p align="right"><font size="2">68,640</font></p>
        </td>
        <td><p align="right"><font size="2">*</font></p>
        </td>
        <td><p align="right"><font size="2">-</font></p>
        </td>
        <td><p align="right"><font size="2">-</font></p>
        </td>
    </tr>
    <tr>
        <td><font size="2">A.W. Oughtred</font></td>
        <td align="right"><font size="2">3,500</font></td>
        <td align="right"><font size="2">*</font></td>
        <td align="right"><font size="2">-</font></td>
        <td align="right"><font size="2">-</font></td>
    </tr>
    <tr>
        <td><font size="2">E.K. Roberts</font></td>
        <td align="right"><font size="2">173,244</font></td>
        <td align="right"><font size="2">1.4%</font></td>
        <td align="right"><font size="2">108</font></td>
        <td align="right"><font size="2">*</font></td>
    </tr>
    <tr>
        <td><font size="2">E.J. Shames</font></td>
        <td align="right"><font size="2">58,250</font></td>
        <td align="right"><font size="2">*</font></td>
        <td align="right"><font size="2">-</font></td>
        <td align="right"><font size="2">-</font></td>
    </tr>
    <tr>
        <td><font size="2">B. Winberg</font></td>
        <td align="right"><font size="2">4,400</font></td>
        <td align="right"><font size="2">*</font></td>
        <td align="right"><font size="2">-</font></td>
        <td align="right"><font size="2">-</font></td>
    </tr>
    <tr>
        <td><font size="2">Executive Officers and Directors as a
        group (10 persons)</font></td>
        <td align="right"><font size="2">3,191,919</font></td>
        <td align="right"><font size="2">24.7%</font></td>
        <td align="right"><font size="2">50,618</font></td>
        <td align="right"><font size="2">50.8%</font></td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td align="right">&nbsp;</td>
        <td align="right">&nbsp;</td>
        <td align="right">&nbsp;</td>
        <td align="right">&nbsp;</td>
    </tr>
    <tr>
        <td><font size="2">* less than 1%</font></td>
        <td align="right">&nbsp;</td>
        <td align="right">&nbsp;</td>
        <td align="right">&nbsp;</td>
        <td align="right">&nbsp;</td>
    </tr>
</table>

<p><font size="2">(1) For purposes of the table, beneficial
ownership is determined pursuant to Rule 13d-3 of the U.S.
Securities Exchange Act of 1934, as amended, pursuant to which a
person or group of persons is deemed to have &quot;beneficial
ownership&quot; of a class of outstanding shares which such
person or group has the right to acquire within 60 days after
[March 25, 2003]. The percentage of shares deemed outstanding is
based on 12,665,851 Class A Shares and 99,680 Class B Shares
outstanding as of the record date [March 25, 2003]. In addition,
for purposes of computing the percentage of Class A Shares owned
by each person, the percentage includes all Class A Shares
issuable upon the exercise of outstanding options held by such
persons within 60 days after [March 25, 2003] .</font></p>

<p><font size="2">Mr. Lowenthal and Mrs. Roberts have advised the
Corporation that they intend to vote all of the Class B Shares
owned and controlled by them in favour of each of the matters to
be voted on at the Annual and Special Meeting of Shareholders.</font></p>

<p align="center"><font size="2"><b></b></font>&nbsp;</p>

<p align="center"><font size="2"><b>PARTICULARS OF MATTERS TO BE
ACTED UPON</b></font></p>

<blockquote>
    <blockquote>
        <p><font size="2">1. <b>APPOINTMENT OF AUDITORS</b></font></p>
    </blockquote>
</blockquote>

<p><font size="2">PricewaterhouseCoopers LLP has served as the
auditors of the Corporation since 1993. PricewaterhouseCooopers
LLP has advised the Corporation that neither the firm nor any of
its members or associates has any direct financial interest or
any material indirect financial interest in the Corporation or
any of its affiliates other than as accountants. Representatives
of PricewaterhouseCoopers LLP are expected to be present at the
Meeting with the opportunity to make a statement if they desire
to do so and are expected to be available to respond to
appropriate questions.</font></p>

<p><font size="2">The fees billed to the Corporation and its
subsidiaries by PricewaterhouseCoopers LLP during the year 2002
were as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="672">
    <tr>
        <td valign="top" width="57%"><font size="2">Annual Audit
        Fees </font></td>
        <td valign="top" width="43%"><font size="2">$ 546,000</font></td>
    </tr>
    <tr>
        <td valign="top" width="57%"><font size="2">Other Audit
        Related Fees </font></td>
        <td valign="top" width="43%"><font size="2">$ 34,000</font></td>
    </tr>
    <tr>
        <td valign="top" width="57%"><font size="2">All Other
        Fees </font></td>
        <td valign="top" width="43%"><font size="2"><u>$ nil</u></font></td>
    </tr>
    <tr>
        <td valign="top" width="57%"><font size="2">Total </font></td>
        <td valign="top" width="43%"><font size="2"><u>$ 580,000</u></font></td>
    </tr>
</table>
</center></div>

<p><font size="2">The Annual Audit Fees include the fees for the
audit of the Corporation's annual consolidated financial
statements for the year 2002 and the review of the quarterly
financial statements included in the Forms 10-Q filed by the
Corporation during the year and the interim reports to
shareholders sent to shareholders during the year. Other Audit
Related Fees include fees for audits of the Corporation's
employee benefit plans. There were no Financial Information
System Design and Implementation Fees. During 2002, the
Corporation retained Ernst &amp; Young LLP to provide tax related
services to the Corporation and it is expected that Ernst &amp;
Young LLP will provide substantially all of the Corporation's
required tax related services in 2003. </font></p>

<blockquote>
    <blockquote>
        <p><font size="2">2. <b>AMENDMENT OF ARTICLES TO CHANGE
        THE NAME OF THE CORPORATION TO OPPENHEIMER HOLDINGS INC.</b></font></p>
    </blockquote>
</blockquote>

<p><font size="2">With the acquisition of the U.S. Private Client
Division of CIBC World Markets Corp. as described under
&quot;Acquisition of U.S. Private Client Division of CIBC&quot;
below including the rights to the &quot;Oppenheimer&quot; name
under which the business was carried on by CIBC World Markets,
the board of directors has determined to recommend to
shareholders that the name of the Corporation be changed to
&quot;Oppenheimer Holdings Inc.&quot; The business is currently
operated as the Oppenheimer Division of Fahnestock. Similarly,
the name of the Corporation&#146;s principal brokerage
subsidiary, Fahnestock &amp; Co. Inc., is being changed to
Oppenheimer &amp; Co. Inc. and certain other subsidiaries of the
Corporation are adopting or will adopt the Oppenheimer name. The
Corporation regards the Oppenheimer name as one of the most
widely recognized and respected names in the U.S. financial
services industry and wishes to adopt it to capitalize on its
brand recognition and reputation.</font></p>

<p><font size="2">Accordingly, Class B Shareholders are being
asked to consider, and if deemed advisable, pass the special
resolution which appears as Schedule A to this Management
Information Circular amending the articles of the Corporation to
change the name of the Corporation to &quot;Oppenheimer Holdings
Inc.&quot; </font></p>

<p><font size="2">In order to pass, the special resolution must
be approved by at least two-third of the votes cast by the Class
B Shareholders at the Meeting.</font></p>

<p><font size="2">Provided that the special resolution passes,
management intends to file the articles of amendment effecting
the change of name later in the year to coincide with the
adoption by the Corporation and its subsidiaries of the
Oppenheimer name</font></p>

<blockquote>
    <blockquote>
        <p><font size="2">3. <b>AMENDMENT OF ARTICLES TO CHANGE
        THE NUMBER OF DIRECTORS OF THE CORPORATION </b></font></p>
    </blockquote>
</blockquote>

<p><font size="2">Reference is made to the summary of the
acquisition by the Corporation of the U.S. Private Client
Division of CIBC World Corp. described under &quot;Acquisition of
U.S. Private Client Division of CIBC&quot; below. In the
Stakeholders Agreement described in the summary, the Corporation
has agreed to make, and Mr. A.G. Lowenthal and Mrs. Olga Roberts
have agreed to vote the Class B Shares they own or control in
favour of, amendments to the Corporation&#146;s articles and
By-Laws so that the Board of Direction of the Corporation will
consist of up to 10 members two of whom two will be nominees of
Canadian Imperial Bank of Commerce. The articles and By-Laws of
the Corporation currently provide for a Board of seven Directors.</font></p>

<p><font size="2">Accordingly, Class B Shareholders are being
asked to consider, and if deemed advisable, pass the special
resolution which appears as Schedule B to this Management
Information Circular, amending the articles of the Corporation to
provide that the Board of Directors of the Corporation shall
consist of a minimum of five and a maximum of 15 directors and
authorizing the directors of the Corporation to determine the
number of Directors to be elected at each annual meeting of
shareholders of the Corporation.</font></p>

<p><font size="2">In order to pass, the special resolution must
be approved by at least two-thirds of the votes cast by the Class
B Shareholders at the Meeting.</font></p>

<blockquote>
    <blockquote>
        <p><font size="2">4. <b>AMENDMENT OF BY-LAWS</b></font></p>
    </blockquote>
</blockquote>

<p><font size="2">For the reasons set out above under
&quot;Amendment of Articles to Change the Number of Directors of
the Corporation&quot;, Class B Shareholders are being asked to
consider, and if deemed advisable, pass the resolution, which
appears as Schedule C to this Management Information Circular,
confirming the amendment made to By-Law Number One by the
Directors on February 28, 2003 providing that the number of
Directors of the Corporation shall be the number provided for in
the articles of the Corporation.</font></p>

<p><font size="2">In order to pass, the resolution must be
approved by a simple majority of the votes cast by the Class B
Shareholders at the Meeting.</font></p>

<blockquote>
    <blockquote>
        <p><font size="2">5. <b>ELECTION OF DIRECTORS</b></font></p>
    </blockquote>
</blockquote>

<p><font size="2">The Board of Directors of the Corporation
currently consists of seven directors to be elected annually. The
term of office for each director is from the date of the meeting
at which the director is elected until the close of the next
annual meeting of shareholders or until his or her successor is
duly elected or appointed, unless his or her office is earlier
vacated in accordance with the by-laws of the Corporation. </font></p>

<p><font size="2">Provided that the Class B Shareholders vote in
favour of the special resolution amending the articles of the
Corporation to provide for a minimum of five and a maximum of 15
directors and in favour of the similar amendment to the
Corporation&#146;s By-Laws, the directors have determined that
nine directors are to be elected at the Annual and Special
Meeting of Shareholders. Management does not contemplate that any
of the nominees named below will be unable to serve as a
director, but, if such an event should occur for any reason prior
to the meeting, the Management Nominees reserve the right to vote
for another nominee or nominees in their discretion. The
following sets out information with respect to the proposed
nominees for election as directors:</font></p>
<div align="center"><center>

<table border="0" cellpadding="6" cellspacing="0" width="636">
    <tr>
        <td valign="top" width="20%"><font size="2"><b><u>Name</u></b></font></td>
        <td valign="top" width="19%"><font size="2"><b>Positions
        and Offices held with </b><b><u>the Corporation</u></b></font></td>
        <td valign="top" width="25%"><font size="2"><b><u>Occupation</u></b></font></td>
        <td valign="top" width="14%"><font size="2"><b>Year</b></font><p><font
        size="2"><b>Became</b></font></p>
        <p><font size="2"><b><u>Director</u></b></font></p>
        </td>
        <td valign="top" colspan="2" width="23%"><font size="2"><b>Number
        of Shares of the Corporation Beneficially Owned Directly
        or Indirectly (excluding Class A Shares issuable on the
        exercise of stock </b><b><u>options)</u></b></font></td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="12%">Class A Shares</td>
        <td valign="top" width="10%">Class B Shares</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><font size="2">J.L. Bitove </font></td>
        <td valign="top" width="19%"><font size="2">Director</font></td>
        <td valign="top" width="25%"><font size="2">Retired
        Executive</font></td>
        <td valign="top" width="14%"><font size="2">1980</font></td>
        <td valign="top" width="12%"><font size="2">50,580</font></td>
        <td valign="top" width="10%"><font size="2">20</font></td>
    </tr>
    <tr>
        <td valign="top" width="20%"><font size="2">R. Crystal </font></td>
        <td valign="top" width="19%"><font size="2">Director</font></td>
        <td valign="top" width="25%"><font size="2">Partner,
        Brown Raysman Millstein Felder &amp; Steiner LLP (law
        firm)</font></td>
        <td valign="top" width="14%"><font size="2">1992</font></td>
        <td valign="top" width="12%"><font size="2">2,700</font></td>
        <td valign="top" width="10%"><font size="2">&#151;</font></td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><font size="2">A.G.
        Lowenthal </font></td>
        <td valign="top" width="19%"><font size="2">Chairman of
        the Board and Chief Executive Officer and Director </font></td>
        <td valign="top" width="25%"><font size="2">Chairman of
        the Board and Chief Executive Officer of the Corporation
        and Fahnestock &amp; Co. Inc. </font></td>
        <td valign="top" width="14%"><font size="2">1985</font></td>
        <td valign="top" width="12%"><font size="2">2,613,613</font></td>
        <td valign="top" width="10%"><font size="2">50,490</font></td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><font size="2">K.W. McArthur
        </font></td>
        <td valign="top" width="19%"><font size="2">Director</font></td>
        <td valign="top" width="25%"><font size="2">President and
        Chief Executive Officer, Shurway Capital Corporation
        (private investment company)</font></td>
        <td valign="top" width="14%"><font size="2">1996</font></td>
        <td valign="top" width="12%"><font size="2">35,000</font></td>
        <td valign="top" width="10%"><font size="2">&#151;</font></td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><font size="2">A. Molestina </font></td>
        <td valign="top" width="19%"><font size="2">&#151;</font></td>
        <td valign="top" width="25%"><font size="2">Deputy
        General Counsel, Canadian Imperial Bank of Commerce
        (chartered bank)</font></td>
        <td valign="top" width="14%"><font size="2">&#151;</font></td>
        <td valign="top" width="12%"><font size="2">&#151;</font></td>
        <td valign="top" width="10%"><font size="2">&#151;</font></td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><font size="2">A.W. Oughtred
        </font></td>
        <td valign="top" width="19%"><font size="2">Secretary and
        Director</font></td>
        <td valign="top" width="25%"><font size="2">Partner,
        Borden Ladner Gervais LLP (law firm)</font></td>
        <td valign="top" width="14%"><font size="2">1979</font></td>
        <td valign="top" width="12%"><font size="2">3,500</font></td>
        <td valign="top" width="10%"><font size="2">&#151;</font></td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><font size="2">E.K. Roberts </font></td>
        <td valign="top" width="19%"><font size="2">President,
        Treasurer and Director </font></td>
        <td valign="top" width="25%"><font size="2">President and
        Treasurer of the Corporation</font></td>
        <td valign="top" width="14%"><font size="2">1977</font></td>
        <td valign="top" width="12%"><font size="2">116,994</font></td>
        <td valign="top" width="10%"><font size="2">108</font></td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><font size="2">B. Winberg </font></td>
        <td valign="top" width="19%"><font size="2">Director</font></td>
        <td valign="top" width="25%"><font size="2">President,
        Rockport Holdings Limited (Real Estate development)</font></td>
        <td valign="top" width="14%"><font size="2">1979</font></td>
        <td valign="top" width="12%"><font size="2">4,400</font></td>
        <td valign="top" width="10%"><font size="2">&#151;</font></td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><font size="2">R.Venn </font></td>
        <td valign="top" width="19%"><font size="2">&#151;</font></td>
        <td valign="top" width="25%"><font size="2">Senior
        Executive Vice-President, Corporate Development, Canadian
        Imperial Bank of Commerce (chartered bank)</font></td>
        <td valign="top" width="14%"><font size="2">&#151;</font></td>
        <td valign="top" width="12%"><font size="2">&#151;</font></td>
        <td valign="top" width="10%"><font size="2">&#151;</font></td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>NOTES:</b></font></p>

<blockquote>
    <p><font size="2">1. There is no Executive Committee of the
    Board of Directors. Messrs. J.L. Bitove, K.W. McArthur and B.
    Winberg are members of the Audit Committee. Messrs. J.L.
    Bitove and B. Winberg are members of the Compensation and
    Stock Option Committee and the Nominating/Corporate
    Governance Committee.</font></p>
    <p><font size="2">2. The Corporation has been informed with
    regard to holdings of its shares by the nominees named above.
    The Class A Shares issuable on the exercise of the stock
    options described in Note 3 below are not included in the
    table above. </font></p>
    <p><font size="2">3. As at the date of this Management
    Information Circular, the directors held stock options
    granted under the Corporation's 1996 Equity Incentive Plan as
    follows. </font></p>
</blockquote>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="582">
    <tr>
        <td valign="top" width="25%"><font size="2"><b><u>Director
        </u></b></font></td>
        <td valign="top" width="21%"><font size="2"><b>Number of</b></font><p><font
        size="2"><b>Shares Under</b></font></p>
        <p><font size="2"><b><u>Option </u></b></font></p>
        </td>
        <td valign="top" width="27%"><font size="2"><b><u>Exercise
        Price</u></b></font></td>
        <td valign="top" width="27%"><font size="2"><b><u>Expiry
        Date </u></b></font></td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">J.L. Bitove </font></td>
        <td valign="top" width="21%"><font size="2">25,000</font></td>
        <td valign="top" width="27%"><font size="2">$25.95</font></td>
        <td valign="top" width="27%"><font size="2">February 25,
        2007</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">R. Crystal </font></td>
        <td valign="top" width="21%"><font size="2">20,000</font></td>
        <td valign="top" width="27%"><font size="2">$23.80</font></td>
        <td valign="top" width="27%"><font size="2">January 1,
        2006</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="21%"><font size="2">5,000</font></td>
        <td valign="top" width="27%"><font size="2">$28.30</font></td>
        <td valign="top" width="27%"><font size="2">December 30,
        2006</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">A.G.
        Lowenthal </font></td>
        <td valign="top" width="21%"><font size="2">150,000</font></td>
        <td valign="top" width="27%"><font size="2">$13.875</font></td>
        <td valign="top" width="27%"><font size="2">February 23,
        2004</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="21%"><font size="2">150,000</font></td>
        <td valign="top" width="27%"><font size="2">$24.31</font></td>
        <td valign="top" width="27%"><font size="2">January 23,
        2008</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">K.W. McArthur
        </font></td>
        <td valign="top" width="21%"><font size="2">15,000</font></td>
        <td valign="top" width="27%"><font size="2">$16.875</font></td>
        <td valign="top" width="27%"><font size="2">May 16, 2004</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="21%"><font size="2">5,000</font></td>
        <td valign="top" width="27%"><font size="2">$14.9375</font></td>
        <td valign="top" width="27%"><font size="2">December 30,
        2004</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="21%"><font size="2">5,000</font></td>
        <td valign="top" width="27%"><font size="2">$24.10</font></td>
        <td valign="top" width="27%"><font size="2">December 30,
        2005</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">A.W. Oughtred
        </font></td>
        <td valign="top" width="21%"><font size="2">25,000</font></td>
        <td valign="top" width="27%"><font size="2">$25.95</font></td>
        <td valign="top" width="27%"><font size="2">February 25,
        2007</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">E.K. Roberts </font></td>
        <td valign="top" width="21%"><font size="2">75,000</font></td>
        <td valign="top" width="27%"><font size="2">$13.875</font></td>
        <td valign="top" width="27%"><font size="2">February 23,
        2004</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="21%"><font size="2">10,000</font></td>
        <td valign="top" width="27%"><font size="2">$24.31</font></td>
        <td valign="top" width="27%"><font size="2">January 23,
        2008</font></td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">B. Winberg </font></td>
        <td valign="top" width="21%"><font size="2">25,000</font></td>
        <td valign="top" width="27%"><font size="2">$25.95</font></td>
        <td valign="top" width="27%"><font size="2">February 25,
        2007</font></td>
    </tr>
</table>
</center></div>

<blockquote>
    <p><font size="2">6. A.W. Oughtred is a partner in the law
    firm of Borden Ladner Gervais LLP and Richard Crystal is a
    partner in the law firm of Brown Raysman Millstein Felder
    &amp; Steiner LLP, both of which firms provide legal services
    to the Corporation and its subsidiaries.</font></p>
    <p><font size="2">7. Each of A. Molestina and R. Venn are
    nominees of CIBC pursuant to the Stakeholders Agreement
    described under &quot;Acquisition of U.S. Private Client
    Division of CIBC&quot; below and Mr. Venn has been an
    executive officer of CIBC for more than five years. Mr.
    Molestina has been an executive officer of CIBC since April,
    2000 and prior thereto was an executive officer of UBS
    Warburg.</font></p>
</blockquote>

<p><font size="2"><b>Directors' and Officers' Insurance</b></font></p>

<p><font size="2">The Corporation carries liability insurance for
its directors and officers and the directors and officers of its
subsidiaries. On November 30, 2001, the Corporation renewed its
directors and officers liability insurance for the one year
ending November 30, 2002 at an annual premium rate of $112,000.
On November 30, 2002 the Corporation renewed such insurance for a
further one year period ending November 30, 2003 at an annual
premium of $194,172. No part of the insurance premiums were or
are to be paid by the officers and directors. The aggregate
insurance coverage for both years is limited to $10 million with
a $1 million deductible for the policy year ended November 30,
2002 and a $2.5 million deductible for the policy year ended
November 30, 2003.</font></p>

<p><font size="2">Under the by-laws of the Corporation, the
Corporation is obligated to indemnify the directors and officers
of the Corporation and its subsidiaries to the maximum extent
permitted by the Business Corporations Act (Ontario). The
Corporation has entered into indemnity agreements with each of
its directors providing for such indemnities.</font></p>

<p><font size="2"><b>Directors Compensation</b></font></p>

<p><font size="2">In the year ended December 31, 2002, the
Corporation paid its directors an annual retainer fee of $10,000,
plus $1,000 for each board or committee meeting attended in
person and $500 for each board or committee meeting attended by
telephone. In 2002 the directors were paid directors&#146; fees
of $176,150 in the aggregate. Directors are reimbursed for travel
and related expenses incurred in attending board and committee
meetings. The directors who are not employees of the Corporation
and its subsidiaries are also entitled to the automatic grant of
stock options under the Corporation's 1996 Equity Incentive Plan,
as amended, pursuant to a formula set out in the Plan.</font></p>

<p><font size="2"><b>Indebtedness of Directors and Officers</b></font></p>

<p><font size="2">During the year 2002, certain of the, executive
officers and senior officers of the Corporation and Fahnestock
&amp; Co. Inc. (&quot;Fahnestock&quot;) maintained margin
accounts with Fahnestock in connection with the purchase of
securities (including securities of the Corporation) which margin
accounts are substantially on the same terms including interest
rates and collateral, as those prevailing from time to time for
comparable transactions with non-affiliated persons and do not
involve more than the normal risk of collectability. The details
of their indebtedness to Fahnestock on their margin accounts is
as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="568">
    <tr>
        <td valign="top" width="43%"><font size="2"><b><u>Name
        and Principal Position</u></b></font></td>
        <td valign="top" width="17%"><font size="2"><b>Largest
        Amount Outstanding </b><b><u>during 2002</u></b></font></td>
        <td valign="top" width="24%"><font size="2"><b>Amount
        Outstanding as at </b><b><u>February 28, 2003</u></b></font></td>
        <td valign="top" width="17%"><font size="2"><b>Security
        for </b><b><u>Indebtedness</u></b></font></td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font size="2">Albert G.
        Lowenthal</font><p><font size="2">Chairman and CEO of the
        Corporation and Fahnestock</font></p>
        </td>
        <td valign="top" width="17%"><font size="2">$27,800</font></td>
        <td valign="top" width="24%"><font size="2">$0</font></td>
        <td valign="top" width="17%"><font size="2">Margined
        Securities</font></td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font size="2">R. Maimone,
        Senior Vice President, Operations of Fahnestock </font></td>
        <td valign="top" width="17%"><font size="2">$602,700</font></td>
        <td valign="top" width="24%"><font size="2">$602,700</font></td>
        <td valign="top" width="17%"><font size="2">Margined
        Securities </font></td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font size="2">Eric J.
        Shames</font><p><font size="2">Secretary and General
        Counsel of Fahnestock</font></p>
        </td>
        <td valign="top" width="17%"><font size="2">$122,300</font></td>
        <td valign="top" width="24%"><font size="2">$122,300</font></td>
        <td valign="top" width="17%"><font size="2">Margined
        Securities</font></td>
    </tr>
</table>
</center></div>

<blockquote>
    <p><font size="2">5. <b>CONVERSION OF E.A. VINER
    INTERNATIONAL CO. CONVERTIBLE DEBENTURE</b></font></p>
</blockquote>

<p><font size="2">Pursuant to the Asset Purchase Agreement
described under &quot;Acquisition of U.S. Private Client Division
of CIBC&quot; below, effective January 3, 2003 the Corporation,
through Viner Finance Inc. acquired the assets and business of
the U.S. Private Client Division of CIBC World Markets Corp. To
fund a portion of the purchase price, the Corporation&#146;s
wholly-owned subsidiary, E.A. Viner International Co., issued to
CIBC (i) a $69,980,828 principal amount Variable Rate
Exchangeable Debenture Due 2013 (the &quot;First Exchangeable
Debenture&quot;) and (ii) a $90,841,572 principal amount
Convertible Debenture Due 2006 (the Interim Debenture&quot;).
Subject to shareholder approval, as described below, the Interim
Debenture is convertible into a $90,841,572 principal amount
Variable Rate Exchangeable Debenture Due 2013 (the &quot;Second
Exchangeable Debenture&quot;). The First Exchangeable Debenture
is exchangeable for 3,016,415 Class A Shares at the rate of
$23.20 per share (the closing price on the NYSE for the Class A
Shares on December 6, 2002). The Second Exchangeable Debenture
(when issued) will be exchangeable for 3,915,585 Class A Shares,
also at the rate of $23.20 per share. The First and Second
Exchangeable Debentures provide for an adjustment of up to an
additional issuance of approximately 208,000 of the Class A
Shares, if that the Debentures are exchanged, the holders of the
Debentures exercise their rights to have the Class A Shares, for
which the Debentures are exchanged, sold and realize a price of
less than $23.20 per share. If both Debentures are fully
converted CIBC would own approximately 35% of the then
outstanding Class A Shares.</font></p>

<p><font size="2">In accordance with the requirements of the
Toronto Stock Exchange, the Interim Debenture may not be
converted into the Second Exchangeable Debenture without the
approval of the Class A Shareholders and Class B Shareholders
voting together. Provided shareholders approve the conversion,
the Convertible Debenture will be automatically converted.</font></p>

<p><font size="2">Accordingly, the Class A Shareholders and Class
B Shareholders are being asked to consider, and if deemed
advisable, pass the resolution which appears as Schedule C to
this Management Information Circular.</font></p>

<p><font size="2">In order to pass, the resolution must be
approved by a simple majority of the votes cast by the Class A
and Class B Shareholders voting together. Abstentions and broker
non-votes will not be counted as votes cast with respect to this
resolution and will have no effect on whether or not the
resolution passes.</font></p>

<p><font size="2">Reference is made to &quot;Acquisition of U.S.
Private Client Division of CIBC&quot; below for further
information on the acquisition and the agreements of Mr.
Lowenthal and Mrs. Olga Roberts to vote their Class A and Class B
Shares in favour of the conversion.</font></p>

<blockquote>
    <p><font size="2">6. <b>CONDITIONAL ISSUE OF CLASS A SHARES
    TO MANAGERS OF OPPENHEIMER DIVISION OF FAHNESTOCK &amp; CO.
    INC.</b></font></p>
</blockquote>

<p><font size="2">As an incentive to certain key managers of the
U.S. Private Client Division and the Asset Management businesses
acquired and to be acquired from CIBC World Markets to stay with
Fahnestock, on March 17, 2003 the Board of Directors of the
Corporation authorized the issue of up to 45,000 Class A Shares
at the price of $22.50 per share to such managers. Each manager
who continues in the employment of Fahnestock until January 3,
2006 will, on that date, receive the Class A Shares allocated to
him or her as part of his or her compensation for the three year
period. It is a requirement of the Toronto Stock Exchange that
the issue of shares, as part of a share compensation arrangement,
be conditional on shareholder approval.</font></p>

<p><font size="2">Accordingly, the Class B Shareholders are being
asked to consider, and if deemed advisable, pass the resolution
which appears as Schedule E to this Management Information
Circular approving conditional the issue of up to 45,000 Class A
Shares to such managers.</font></p>

<p><font size="2">In order to pass, the resolution must be
approved by a simple majority of the votes cast by the Class B
Shareholders.</font></p>

<blockquote>
    <p><font size="2">7. <b>ISSUE OF CLASS A SHARES TO THE
    TRUSTEES OF THE FAHNESTOCK &amp; CO. INC. 401(K) PLAN</b></font></p>
</blockquote>

<p><font size="2">Fahnestock &amp; Co. Inc. maintains a 401(k)
Plan in the United States (the &quot;401(k) Plan&quot;) for its
employees [and those of its subsidiaries], as a retirement in
plan accordance with the provisions of the United States Internal
Revenue Code. Fahnestock &amp; Co. Inc. and its eligible
employees make contributions to the 401(k) Plan which is
administered by Trustees. Participants in the 401(k) Plan are
entitled to direct the investment of the funds in the 401(k) Plan
held for participants&#146; accounts from a selection of
investments designated by Fahnestock &amp; Co. Inc. Included in
the selection of investments are the Class A Shares of the
Corporation. Prior to year end the Board conditionally issues
Class A Shares to the Trustees of the 401(k) Plan at the current
market price. At the end of each year participants select their
investments and, where Class A Shares are selected, the
Corporation issues Class A Shares to the Trustees of the 401(k)
Plan at the price set prior to year end.</font></p>

<p><font size="2">The Toronto Stock Exchange requires that such
issues of Class A Shares be approved by shareholders.</font></p>

<p><font size="2">Accordingly, Class B Shareholders are being
asked to consider, and if deemed advisable, pass the resolution
that appears as Schedule F to this Management Information
Circular authorizing the issue of up to 200,000 Class A Shares at
the market price on the date of conditional issued to the
Trustees of the Fahnestock &amp; Co. Inc. 401(k) Plan. It is
likely that the 401(k) Plan will not acquire that number of Class
A Shares in 2004 and, to the extent that Class A Shares are not
acquired in 2004, they will be carried forward for issue in
subsequent years.</font></p>

<p><font size="2">In order to pass, the resolution must be
approved by a simple majority of the votes cast by the Class B
Shareholders.</font></p>

<p align="center"><font size="2"><b>EXECUTIVE COMPENSATION</b></font></p>

<p><font size="2">The Compensation and Stock Option Committee
(the &quot;Committee&quot;) is responsible for making
recommendations for approval by the Board of Directors with
respect to the compensation of the Corporation's executive
officers. The members of this Committee are John L. Bitove and
Burton Winberg, each of whom are outside directors of the
Corporation and have no interlocking relationship with the
Corporation or its subsidiaries.</font></p>

<p><font size="2"><b>Summary Compensation Table</b></font></p>

<p><font size="2">The following table sets forth total annual
compensation paid or accrued by the Corporation to or for the
account of the Corporation's chief executive officer and each of
the four most highly paid executive officers of the Corporation
and Fahnestock, the Corporation's principal operating subsidiary,
other than the chief executive officer whose total cash
compensation for the fiscal year ended December 31, 2002 exceeded
$100,000 (the &quot;Named Executives&quot;).</font></p>

<table border="0" cellpadding="6" cellspacing="0" width="720">
    <tr>
        <td valign="top" width="23%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" colspan="3" width="39%"><font size="2"><b><u>Annual
        Compensation </u></b></font></td>
        <td valign="top" width="13%"><font size="2"><b>Long-term</b></font><p><font
        size="2"><b><u>Compensation</u></b></font></p>
        </td>
        <td valign="top" width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2"><b>Name and
        Principal </b><b><u>Occupation</u></b></font></td>
        <td valign="top" width="8%"><font size="2"><b><u>Year</u></b></font></td>
        <td valign="top" width="12%"><font size="2"><b><u>Salary</u></b></font></td>
        <td valign="top" width="12%"><font size="2"><b><u>Bonus</u></b></font></td>
        <td valign="top" width="16%"><font size="2"><b>Other
        Annual </b><b><u>Compensation (1)</u></b></font></td>
        <td valign="top" width="13%"><font size="2"><b>Class A
        Shares Underlying </b><b><u>Options</u></b></font></td>
        <td valign="top" width="16%"><font size="2"><b>All Other </b><b><u>Compensation
        (2)</u></b></font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">A.G.
        Lowenthal,</font></td>
        <td valign="top" width="8%"><font size="2">2002</font></td>
        <td valign="top" width="12%"><font size="2">$480,340</font></td>
        <td valign="top" width="12%"><font size="2">0</font></td>
        <td valign="top" width="16%"><font size="2">$22,500</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$2,475</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">Chairman,
        CEO, and</font></td>
        <td valign="top" width="8%"><font size="2">2001</font></td>
        <td valign="top" width="12%"><font size="2">$480,350</font></td>
        <td valign="top" width="12%"><font size="2">$497,500</font></td>
        <td valign="top" width="16%"><font size="2">$18,000</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$5,725</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">Director of
        the Company; Chairman and CEO and a Director of
        Fahnestock</font></td>
        <td valign="top" width="8%"><font size="2">2000</font></td>
        <td valign="top" width="12%"><font size="2">$480,350</font></td>
        <td valign="top" width="12%"><font size="2">$3,960,000</font></td>
        <td valign="top" width="16%"><font size="2">$17,330</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$7,693</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">Robert
        Neuhoff,</font></td>
        <td valign="top" width="8%"><font size="2">2002</font></td>
        <td valign="top" width="12%"><font size="2">$260,000</font></td>
        <td valign="top" width="12%"><font size="2">$75,000</font></td>
        <td valign="top" width="16%"><font size="2">0</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$2,475</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">Executive
        Vice</font></td>
        <td valign="top" width="8%"><font size="2">2001</font></td>
        <td valign="top" width="12%"><font size="2">$260,000</font></td>
        <td valign="top" width="12%"><font size="2">$175,000</font></td>
        <td valign="top" width="16%"><font size="2">0</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$5,725</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">President and
        a Director of Fahnestock</font></td>
        <td valign="top" width="8%"><font size="2">2000</font></td>
        <td valign="top" width="12%"><font size="2">$260,000</font></td>
        <td valign="top" width="12%"><font size="2">$225,000</font></td>
        <td valign="top" width="16%"><font size="2">0</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$7,693</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">Eric J.
        Shames,</font></td>
        <td valign="top" width="8%"><font size="2">2002</font></td>
        <td valign="top" width="12%"><font size="2">$290,000</font></td>
        <td valign="top" width="12%"><font size="2">$75,000</font></td>
        <td valign="top" width="16%"><font size="2">0</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$2,475</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">Secretary and
        General Counsel of Fahnestock </font></td>
        <td valign="top" width="8%"><font size="2">2001</font></td>
        <td valign="top" width="12%"><font size="2">$290,000</font></td>
        <td valign="top" width="12%"><font size="2">$100,000</font></td>
        <td valign="top" width="16%"><font size="2">0</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$5,725</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%">&nbsp;</td>
        <td valign="top" width="8%"><font size="2">2000</font></td>
        <td valign="top" width="12%"><font size="2">$250,000</font></td>
        <td valign="top" width="12%"><font size="2">$200,000</font></td>
        <td valign="top" width="16%"><font size="2">0</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$7,693</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">E.K. Roberts,</font></td>
        <td valign="top" width="8%"><font size="2">2002</font></td>
        <td valign="top" width="12%"><font size="2">$183,300</font></td>
        <td valign="top" width="12%"><font size="2">$60,000</font></td>
        <td valign="top" width="16%"><font size="2">22,5000</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">0</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">President,
        Treasurer</font></td>
        <td valign="top" width="8%"><font size="2">2001</font></td>
        <td valign="top" width="12%"><font size="2">$ 158,000</font></td>
        <td valign="top" width="12%"><font size="2">$85,000</font></td>
        <td valign="top" width="16%"><font size="2">18,000</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">0</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">And Director
        of the Company, Treasurer and a Director of Fahnestock</font></td>
        <td valign="top" width="8%"><font size="2">2000</font></td>
        <td valign="top" width="12%"><font size="2">$ 135,000</font></td>
        <td valign="top" width="12%"><font size="2">$125,000</font></td>
        <td valign="top" width="16%"><font size="2">17,330</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">0</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">Robert
        Maimone,</font></td>
        <td valign="top" width="8%"><font size="2">2002</font></td>
        <td valign="top" width="12%"><font size="2">$170,000</font></td>
        <td valign="top" width="12%"><font size="2">$80,000</font></td>
        <td valign="top" width="16%"><font size="2">0</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$2,475</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">Sr. Vice
        President,</font></td>
        <td valign="top" width="8%"><font size="2">2001</font></td>
        <td valign="top" width="12%"><font size="2">$170,000</font></td>
        <td valign="top" width="12%"><font size="2">$80,000</font></td>
        <td valign="top" width="16%"><font size="2">0</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$5,725</font></td>
    </tr>
    <tr>
        <td valign="top" width="23%"><font size="2">Operations of
        Fahnestock </font></td>
        <td valign="top" width="8%"><font size="2">2000</font></td>
        <td valign="top" width="12%"><font size="2">$170,000</font></td>
        <td valign="top" width="12%"><font size="2">$80,000</font></td>
        <td valign="top" width="16%"><font size="2">0</font></td>
        <td valign="top" width="13%"><p align="center"><font
        size="2">0</font></p>
        </td>
        <td valign="top" width="16%"><font size="2">$7,693</font></td>
    </tr>
</table>

<blockquote>
    <p><font size="2">(1) Includes Directors Fees of $10,000 per
    year plus $1000 per meeting attended in person and $500 per
    meeting attended by telephone.</font></p>
    <p><font size="2">(2) This amount represents Company
    contributions to the Fahnestock 401(k) Plan.</font></p>
</blockquote>

<p><font size="2"><b>Option Grants for the Year Ended December
31, 2002.</b></font></p>

<p><font size="2">No employee stock options were granted during
the year ended December 31, 2002 to the Named Executives.</font></p>

<p><font size="2"><b>Aggregated Option Exercises And Year-End
Value Table</b></font></p>

<p><font size="2">The following table sets forth information with
respect to options granted during the year ended December 31,
2002 by the Named Executives and as to unexercised options held
by them at December 31, 2002:</font></p>
<div align="center"><center>

<table border="0" cellpadding="7" cellspacing="0" width="678">
    <tr>
        <td valign="top" width="25%"><font size="2"><b><u>Name</u></b></font></td>
        <td valign="top" width="14%"><font size="2"><b>Class A
        Shares acquired on </b><b><u>exercise</u></b></font></td>
        <td valign="top" width="18%"><font size="2"><b><u>Value
        Realized</u></b></font></td>
        <td valign="top" width="19%"><font size="2"><b>Number of
        Class A</b></font><p><font size="2"><b>Shares Underlying</b></font></p>
        <p><font size="2"><b>unexercised</b></font></p>
        <p><font size="2"><b>options/SARs</b></font></p>
        <p><font size="2"><b>exercisable/</b></font></p>
        <p><font size="2"><b><u>unexercisable</u></b></font></p>
        </td>
        <td valign="top" width="25%"><font size="2"><b>Year-end
        value of unexercised in-the-money options </b><b><u>exercisable/</u></b></font><p><font
        size="2"><b><u>Unexercisable</u></b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">A.G.
        Lowenthal </font></td>
        <td valign="top" width="14%"><font size="2">0</font></td>
        <td valign="top" width="18%"><font size="2">0</font></td>
        <td valign="top" width="19%"><p align="right"><font
        size="2">225,000/75,000</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        size="2">$1,959,000/$853,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">R. Neuhoff </font></td>
        <td valign="top" width="14%"><font size="2">0</font></td>
        <td valign="top" width="18%"><font size="2">0</font></td>
        <td valign="top" width="19%"><p align="right"><font
        size="2">25,000/50,000</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        size="2">$284,000/$324,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">E. J. Shames </font></td>
        <td valign="top" width="14%"><font size="2">0</font></td>
        <td valign="top" width="18%"><font size="2">0</font></td>
        <td valign="top" width="19%"><p align="right"><font
        size="2">22,500/7,500</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        size="2">$196,000/$85,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">E.K. Roberts </font></td>
        <td valign="top" width="14%"><font size="2">0</font></td>
        <td valign="top" width="18%"><font size="2">0</font></td>
        <td valign="top" width="19%"><p align="right"><font
        size="2">37,500/37,500</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        size="2">$427,000/$427,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="25%"><font size="2">R. Maimone </font></td>
        <td valign="top" width="14%"><font size="2">0</font></td>
        <td valign="top" width="18%"><font size="2">0</font></td>
        <td valign="top" width="19%"><p align="right"><font
        size="2">0/12,500</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        size="2">0</font></p>
        </td>
    </tr>
</table>
</center></div>

<p align="center"><font size="2"><b>REPORT OF THE COMPENSATION
AND STOCK OPTION COMMITTEE</b></font></p>

<p><font size="2">The following report of the Committee discusses
generally the Committee's executive compensation objectives and
policies and their relationship to corporate performance in 2002.
In addition, the report specifically discusses the Committee's
bases for compensation in 2002 of the Corporation's Chief
Executive Officer, as well as the other senior executive officers
of the Corporation and Fahnestock.</font></p>

<p><font size="2"><b><i>Objectives and Policies</i></b></font></p>

<p><font size="2">The Committee's objective is to provide a
competitive compensation program with appropriate incentives for
superior performance, thereby providing a strong and direct link
between corporate performance and compensation. Performance is
defined in several ways, as more fully discussed below, each of
which has relevance to the Corporation's success in the
short-term, long-term or both.</font></p>

<p><font size="2">The Corporation's compensation program for
senior executive officers consists of the following key elements:
a base salary, an annual bonus, grants of stock options and, in
the case of the Chief Executive Officer, the Performance-Based
Compensation Agreement referred to below.</font></p>

<p><font size="2">In arriving at its recommendations concerning
the specific components of the Corporation's compensation
program, the Committee considers certain public information about
the compensation paid by a group of comparable public Canadian
and U.S. broker-dealers and the relative performance of the
Corporation as measured by net income levels and earnings per
share, among other factors.</font></p>

<p><font size="2">The Committee believes that this approach best
serves the interests of shareholders by enabling the Corporation
to structure compensation in a way that meets the requirements of
the highly competitive environment in which the Corporation
operates, while ensuring that senior executive officers are
compensated in a manner that advances both the short and
long-term interests of shareholders.</font></p>

<p><font size="2">Compensation for the Corporation's senior
executive officers involves a significant component of
remuneration which is contingent on the performance of both the
Corporation and the senior executive officer: the variable annual
bonus (which permits individual performance to be recognized on
an annual basis, and which is based, in significant part, on an
evaluation of the contribution made by the officer to corporate
performance) and stock options (which directly relate a portion
of compensation to stock price appreciation realized by the
Corporation's shareholders).</font></p>

<p><font size="2"><i>Base Salary. </i>Salaries paid to senior
executive officers (other than the Chief Executive Officer) are
reviewed annually by the Committee considering recommendations
made by the Chief Executive Officer to the Committee, based upon
the Chief Executive Officer's assessment of the nature of the
position, and the skills, experience and performance of each
senior executive officer, as well as salaries paid by comparable
companies in the Corporation's industry. The Committee then makes
recommendations to the Board with respect to base salaries.</font></p>

<p><font size="2"><i>Annual Bonus. </i>Bonuses paid to senior
executive officers (other than the Chief Executive Officer) are
reviewed annually by the Committee considering recommendations
made by the Chief Executive Officer to the Committee, based upon
the Chief Executive Officer's assessment of the performance of
the Corporation and his assessment of the contribution of each
senior executive to that performance. Senior executive officers,
including the Chief Executive Officer, of Fahnestock have the
right to elect to defer a portion of their annual bonus and
performance-based compensation under Fahnestock's Executive
Deferred Compensation Plan, a non-qualified unfunded plan. The
Committee then makes recommendations to the Board with respect to
bonuses.</font></p>

<p><font size="2"><i>Stock Option Grants. </i>Under the Plan, as
amended, senior executive officers and employees of the
Corporation and its subsidiaries (other than the Chief Executive
Officer) are granted stock options by the Committee based upon
the recommendations of the Chief Executive Officer and based upon
a variety of considerations, including the date of the last grant
made to the officer or employee, as well as considerations
relating to the contribution and performance of the specific
optionee.</font></p>

<p>&nbsp;</p>

<p><font size="2"><b><i>Chief Executive Officer Compensation</i></b></font></p>

<p><font size="2">Mr. A.G. Lowenthal, the Chairman of the Board
and the Chief Executive Officer of the Corporation and
Fahnestock, is paid a base salary set by the Committee, plus
performance-based compensation under the Performance-Based
Compensation Agreement referred to below and, at the discretion
of the Committee, is eligible for bonuses and grants of stock
options.</font></p>

<p><font size="2">On January 1, 2001, the Corporation entered
into a Performance-Based Compensation Agreement (the &quot;2001
Comp Agreement&quot;) with Mr. Lowenthal, which expires on
December 31, 2005. The 2001 Comp Agreement was approved by the
Class B Shareholders in 2001. The purpose of the 2001 Comp
Agreement is to set the terms under which Mr. Lowenthal's
performance-based compensation is to be calculated during the
term thereof.</font></p>

<p><font size="2">In March of 2002, the Committee established
performance goals under the 2001 Comp Agreement entitling Mr.
Lowenthal to a Performance Award under the 2001 Comp Agreement
for the year 2002 of an aggregate of the 2002 amounts determined
by the application of the following formulae,</font></p>

<table border="0" cellpadding="7" cellspacing="0" width="540">
    <tr>
        <td valign="top" width="85%"><font size="2">(a) an amount
        equal to the amount by which the closing price of one
        Class A Share at December 31, 2002, exceeded the closing
        price of one Class A Share as at January 1, 2002
        multiplied by 200,000 shares; </font><blockquote>
            <blockquote>
                <p><font size="2">plus</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td valign="top" width="15%"><font size="2">nil </font></td>
    </tr>
    <tr>
        <td valign="top" width="85%"><font size="2">(b) an amount
        equal to:</font></td>
        <td valign="top" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="85%"><blockquote>
            <p><font size="2">(i) 3% of the amount by which the
            Corporation's consolidated profit before income taxes
            for the year ended December 31, 2002 exceeds 15% of
            and is less than 25% of the Corporation's
            consolidated shareholders' equity as at December 31,
            2001; </font></p>
        </blockquote>
        <blockquote>
            <blockquote>
                <p><font size="2">plus</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td valign="top" width="15%"><font size="2">Nil</font></td>
    </tr>
    <tr>
        <td valign="top" width="85%"><blockquote>
            <p><font size="2">(ii) 4% of the amount by which the
            Corporation's consolidated profit before income taxes
            for the year ended December 31, 2002 exceeds 25% of
            the Corporation's consolidated shareholders' equity
            as at December 31, 2001; </font></p>
            <blockquote>
                <p><font size="2">plus</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td valign="top" width="15%"><font size="2">Nil</font></td>
    </tr>
    <tr>
        <td valign="top" width="85%"><font size="2">(c) an amount
        equal to:</font><blockquote>
            <p><font size="2">(i) 3.0% percent of the amount by
            which the Corporation&#146;s consolidated net profit
            for the year ended December 31, 2002 is greater than
            U.S.$0 and less than U.S.$11,500,000; </font></p>
            <blockquote>
                <p><font size="2">plus</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td valign="top" width="15%"><font size="2">$226,410</font></td>
    </tr>
    <tr>
        <td valign="top" width="85%"><blockquote>
            <p><font size="2">(ii) 4.0% of the amount by which
            the Corporation&#146;s consolidated net profit for
            the year ended December 31, 2002 is greater than
            U.S.$11,500,000 and less than U.S.$23,000,000; </font></p>
            <blockquote>
                <p><font size="2">plus</font></p>
            </blockquote>
        </blockquote>
        </td>
        <td valign="top" width="15%"><font size="2">nil</font></td>
    </tr>
    <tr>
        <td valign="top" width="85%"><blockquote>
            <p><font size="2">(iii) 4.5% of the amount by which
            the Corporation&#146;s consolidated net profit for
            the year ended December 31, 2002 is greater than
            U.S.$23,000,000. </font></p>
        </blockquote>
        </td>
        <td valign="top" width="15%"><font size="2"><u>nil</u></font></td>
    </tr>
    <tr>
        <td valign="top" width="85%"><font size="2">Total</font></td>
        <td valign="top" width="15%"><font size="2"><u>$226,410</u></font></td>
    </tr>
</table>

<p><font size="2">Because of the Corporation's performance in
2002, Mr. Lowenthal requested and the Committee agreed that Mr.
Lowenthal not receive a Performance Award under the 2001 Comp
Agreement or any discretionary bonus for 2002. Accordingly, no
Performance Award or discretionary bonus was paid.</font></p>

<p><font size="2">In March of 2002, the Committee set Mr.
Lowenthal&#146;s base salary for 2002 at $480,340, the same base
salary as 2001.</font></p>

<p><font size="2"><b><i>U.S. Internal Revenue Code Section 162(m)</i></b></font></p>

<p><font size="2">The Corporation is a Canadian taxpayer.
However, because Fahnestock is a U.S. taxpayer, most compensation
issues are affected by the U.S. Internal Revenue Code of 1986, as
amended (the &quot;U.S. Tax Code&quot;).</font></p>

<p><font size="2">Section 162(m) of the U.S. Tax Code generally
disallows a tax deduction to public corporations for annual
compensation of over $1,000,000 paid to any of the company's
chief executive officer and four other most highly paid executive
officers (determined as of the end of each fiscal year) unless
such compensation constitutes qualified performance-based
compensation or otherwise qualifies for an exception.</font></p>

<p><font size="2">In order to qualify for exemptions under
Section 162(m) in 2001 the 2001 Comp Agreement was adopted and
approved by the Class B Shareholders.</font></p>

<p><font size="2">To the extent consistent with the Corporation's
general compensation objectives, the Committee considers the
potential effect of Section 162(m) on compensation paid to the
executive officers of the Corporation and its subsidiaries.
However, the Committee reserves the right to award and recommend
the awarding of nondeductible compensation in any circumstances
it deems appropriate. Further, because of ambiguities and
uncertainties as to the application and interpretation of Section
162(m) and the regulations issued thereunder, no assurance can be
given, notwithstanding the Corporation's efforts to qualify, that
the compensation paid by the Corporation to its executive
officers will in fact satisfy the requirements for the exemption
from the Section 162(m) deduction limit.</font></p>

<p><font size="2"><b><i>Members of the Compensation and Stock
Option Committee</i></b></font></p>

<p><font size="2">Burton Winberg &#151; Chairman</font></p>

<p><font size="2">John L. Bitove</font></p>

<p>&nbsp;</p>

<p><font size="2"><b>Share Performance Graph</b></font></p>

<p><font size="2">The following graph shows changes over the past
five year period of U.S. $100 invested in (1) the Company's Class
A Shares, (2) the Standard &amp; Poor's 500 Index and (3) the
Standard &amp; Poors/Toronto Stock Exchange Composite Index.</font></p>

<p><font size="2">[PRINTER TO INSERT GRAPH]</font></p>

<p>&nbsp;</p>

<p align="center"><font size="2"><b>STATEMENT OF CORPORATE
GOVERNANCE PRACTICES</b></font></p>

<p><font size="2">The Toronto Stock Exchange requires every
company listed thereon and incorporated in Canada to disclose on
an annual basis its approach to corporate governance in
accordance with guidelines (the &quot;TSX Guidelines&quot;)
adopted by the Exchange. The Corporation has carefully reviewed
the TSX Guidelines and has conformed to the TSX Guidelines to the
extent that its Board of Directors (the &quot;Board&quot;) has
determined that doing so is consistent with the Corporation's
structure and the efficient discharge of the Board's
responsibilities to the shareholders of the Corporation.</font></p>

<p><font size="2">The Board is monitoring the various new and
proposed United States and Canadian corporate governance
requirements. Recognizing that such requirements will continue to
evolve the Corporation has adopted the various guidelines,
policies and charters referred to below and directly and through
its Committees will continue to review and, where necessary,
revise such guidelines, policies and charters as new requirements
are introduced and as existing and proposed requirements change.</font></p>

<p><font size="2">The Board has, recently adopted a Board of
Directors Corporate Governance Guidelines, a Code of Ethics for
Senior Executives, Financial and Accounting Officers and a
&quot;blackout&quot; policy for the trading of securities of the
Corporation by insiders and others.</font></p>

<p><font size="2"><b>Board Responsibilities</b></font></p>

<p><font size="2">The Board oversees the management of the
business of the Corporation and develops general policies for the
conduct of its affairs. Mr. A.G. Lowenthal, the Chairman of the
Board and Chief Executive Officer, beneficially owns 50.7% of the
issued Class B Shares of the Corporation and approximately 20.3%
of the issued Class A Shares of the Corporation. Ms. E.K.
Roberts, a director, President and Treasurer of the Corporation,
is the daughter of Mrs. Olga Roberts, the beneficial owner of
44.5% of the issued Class B Shares and approximately 2.7% of the
issued Class A Shares.</font></p>

<p><font size="2">In carrying out its duties, the Board consults
extensively with and receives proposals and information from
senior management and also consults with the Corporation's
auditors and, when necessary, other experts retained by the
Corporation.</font></p>

<p><font size="2">In overseeing the management of the business of
the Corporation, the Board, with advice from management,
evaluates the Corporation's strategic planning processes and its
risk profile and risk management policies and procedures, systems
for internal control and information management, issues relating
to senior management succession planning and communications with
its shareholders and the investing public. The Board
independently monitors the performance of senior management. The
Board relies on management to provide the day-to-day management
of the business of the Corporation and its subsidiaries and to
provide regular reports to the Board on the business and
operations of the Corporation and its subsidiaries.</font></p>

<p><font size="2"><b>Board Composition</b></font></p>

<p><font size="2">The Corporation currently has seven directors.
The Board has determined that five of the seven directors are
&quot;unrelated&quot; to the Corporation as that term is used in
the TSX Guidelines. In making that determination, the Board has
considered all business or other relationships which each
director has with the Corporation and, with respect to the
Directors the Board has determined to be &quot;unrelated&quot;,
has concluded that such business or other relationships, where
they exist, could not reasonably be perceived to materially
interfere with the Director's ability to act with a view to the
best interests of the Corporation.</font></p>

<p><font size="2">In particular, the Board has determined that
while Mr. A.W. Oughtred and Mr. R. Crystal are members of firms
which provide legal advice to the Corporation and Mr. Oughtred is
the Secretary of the Corporation, in view of the professional
ethical standards which govern their conduct and the fact that
less than one percent of the revenues of Borden Ladner Gervais
LLP, in which Mr. Oughtred is a partner, and Brown Raysman
Millstein Felder &amp; Steiner LLP in which Mr. Crystal is a
partner, are derived from the Corporation and that Mr. Oughtred's
service as Secretary of the Corporation is without special
compensation and is generally ministerial in nature, Mr. Oughtred
and Mr. Crystal are each &quot;unrelated&quot; to the Corporation
for the purposes of the TSX Guidelines.</font></p>

<p><font size="2">As the Board is presently constituted, the
Board has determined that only Mr. Lowenthal and Ms. Roberts are
&quot;related&quot; to the Corporation for the purposes of the
TSX Guidelines. The Board does not have a chair that is separate
from management. The Board, as a whole, and in particular the
independent Directors are involved in all major business
considerations of the Corporation and are provided ample
opportunity to, and do, dialogue with and question management.
All major decisions with respect to the management and operations
of the Corporation and its subsidiaries are dealt with by the
Board. The Board has appointed a lead director, Mr. K.W.
McArthur, and at each regular Board meeting the unrelated
directors meet alone in the absence of management and the
&quot;related&quot; directors.</font></p>

<p><font size="2">As described under &quot;Acquisition of U.S.
Private Client Division of CIBC&quot; below, CIBC as the holder
of Debentures of a subsidiary of the Corporation which, subject
to shareholder approval, will be exchangeable for up to
approximately 35% of the issued Class A Shares, is entitled to
nominate two Directors to the Board, subject to the approval of
shareholder of an amendment to the articles of the Corporation to
increase the size of the Board. For the purposes of the TSX
Guidelines the Board has determined that the CIBC nominees, if
elected to the Board, will be &quot;unrelated&quot;.</font></p>

<p><font size="2">The subject of director independence from
Management is being reviewed by regulators in Canada and the
United States and it is likely that further policies and/or
guidelines will be issued. The Board will monitor such
developments and, if and to the extent necessary, will take the
steps the Board deems appropriate to assure the independence of
at least a majority of the Board. </font></p>

<p><font size="2"><b>Board Committees</b></font></p>

<p><font size="2">The Board has annually appointed an Audit
Committee and a Compensation and Stock Option Committee and, in
March of 2003, appointed a Nominating/Corporate Governance
Committee. </font></p>

<p><font size="2">The following is a brief summary of the
responsibilities of the Audit Committee, and the Compensation and
Stock Option Committee and the Nominating/Corporate Governance
Committee.</font></p>

<p><font size="2"><b><i>Audit Committee (Messrs. Bitove, McArthur
and Winberg)</i></b></font></p>

<p><font size="2">The Board has adopted a written charter for the
Audit Committee, a copy of which is attached to this Management
Information Circular as Schedule G. The Board has determined that
the members of the Audit Committee are &quot;unrelated,&quot; as
required by the TSX Guidelines and are &quot;independent&quot; as
required by the Sarbanes-Oxley Act and the Securities and
Exchange Commission. Further, the Board has determined that each
of the members of the Audit Committee are financially literate
and that one of the members of the Audit Committee qualifies as a
an &quot;audit committee financial expert&quot; for the purposes
of the SEC rules made pursuant to the Sarbanes-Oxley Act. The
Audit Committee:</font></p>

<p><font size="2">&#149; reviews annual, quarterly and all
legally required public disclosure documents containing financial
information that are submitted to the Board;</font></p>

<p><font size="2">&#149; reviews the nature, scope and timing of
the annual audit carried out by the external auditors and reports
to the Board;</font></p>

<p><font size="2">&#149; evaluates the external auditors'
performance for the preceding fiscal year; reviews their fees and
makes recommendations to the Board;</font></p>

<p><font size="2">&#149; reviews internal financial control
policies, procedures and risk management and reports to the
Board;</font></p>

<p><font size="2">&#149; meets with the external auditors
quarterly to review quarterly and annual financial statements and
reports and to consider material matters which, in the opinion of
the external auditors, should be brought to the attention of the
Board and the shareholders;</font></p>

<p><font size="2">&#149; reviews internal audit activities, meets
regularly with internal audit personnel and reports to the Board;</font></p>

<p><font size="2">&#149; reviews accounting principles and
practices; </font></p>

<p><font size="2">&#149; reviews management reports with respect
to litigation, capital expenditures, tax matters and corporate
administration charges and reports to the Board;</font></p>

<p><font size="2">&#149; reviews related party transactions;</font></p>

<p><font size="2">&#149; reviews and approves changes or waivers
to the Corporation&#146;s Code of Ethics for Senior Executive,
Financial and Accounting Officers; and </font></p>

<p><font size="2">&#149; annually reviews this Charter and
recommends and make changes thereto as required.</font></p>

<p><font size="2">(see also &quot;Report of The Audit
Committee&quot;) </font></p>

<p><font size="2"><b><i>Compensation and Stock Option Committee
(Messrs. Bitove and Winberg)</i></b></font></p>

<p><font size="2">The Board has adopted a Compensation and Stock
Option Committee Charter. All of the members of the Compensation
and Stock Option Committee are &quot;unrelated&quot; and
&quot;independent&quot;. The Compensation and Stock Option
Committee: </font></p>

<blockquote>
    <p><font size="2">&#149; makes recommendations to the Board
    with respect to compensation policy for the Corporation and
    its subsidiaries;</font></p>
    <p><font size="2">&#149; makes recommendations to the Board
    with respect to salary, bonus and benefits paid and provided
    to senior management of the Corporation;</font></p>
    <p><font size="2">&#149; in accordance with the provisions of
    the Plan, authorizes grants of stock options and recommends
    modifications to the Plan;</font></p>
    <p><font size="2">&#149; grants certain compensation awards
    to senior management of the Corporation based on criteria
    linked to the performance of the individual and/or the
    Corporation;</font></p>
    <p><font size="2">&#149; administers the Performance-Based
    Compensation Agreement between the Corporation and Mr. A.G.
    Lowenthal; and</font></p>
    <p><font size="2">&#149; certifies compliance with the
    criteria for certain performance-based awards or grants.</font></p>
</blockquote>

<p><font size="2">(see also &quot;Report of the Compensation and
Stock Option Committee&quot;) </font></p>

<p><font size="2"><b><i>Nominating/Corporate Governance Committee</i></b>
</font></p>

<p><font size="2">(Messrs Bitove, McArthur and Winberg) </font></p>

<p><font size="2">In March of 2003, the Board appointed a
Nominating/Corporate Governance Committee and adopted a
Nominating/Corporate Governance Committee Charter. The Board has
determined that all of the members of the Nominating/Corporate
Governance Committee are &quot;unrelated&quot; and
&quot;independent&quot;. </font></p>

<p><font size="2">The Nominating/Corporate Governance Committee: </font></p>

<p><font size="2">&#149; makes recommendations to the Board with
respect to corporate governance;</font></p>

<p><font size="2">&#149; when necessary, oversees the recruitment
of new Directors for the Corporation;</font></p>

<p><font size="2">&#149; recommends nominees for election or
appointment to the Board; </font></p>

<p><font size="2">&#149; maintains an orientation program for new
directors and oversees the continuing education needs of
Directors; </font></p>

<p><font size="2">&#149; oversees Director performance;</font></p>

<p><font size="2">&#149; reviews and makes recommendations with
respect to the Corporation&#146;s Corporate Governance
Guidelines;</font></p>

<p><font size="2">&#149; commencing in 2004 the Committee will
prepare governance reports for publication in the
Corporation&#146;s Management Information Circular and Annual
Report on Form 10-K.</font></p>

<blockquote>
    <p><font size="2"><b>Shareholder Relations</b></font></p>
</blockquote>

<p><font size="2">The President of the Corporation is responsible
for receiving and addressing shareholder inquiries and concerns
and referring shareholder issues to the Chairman and, where
appropriate, to the Board.</font></p>

<p align="center"><font size="2"><b>REPORT OF THE AUDIT COMMITTEE</b></font></p>

<p><font size="2">As required by the Corporation's Audit
Committee charter, the Audit Committee reports as follows.</font></p>

<p><font size="2">The Audit Committee of the Board oversees the
Corporation's financial reporting process on behalf of the Board.
It meets with management and the Corporation's auditors regularly
and reports the results of its activities to the Board. In this
connection, the Audit Committee has done with respect to fiscal
2002 the following:</font></p>

<blockquote>
    <blockquote>
        <p><font size="2">&#149; Reviewed and discussed with the
        Corporation's management and PricewaterhouseCoopers LLP,
        the Corporation's unaudited quarterly reports on Form
        10-Q and quarterly reports to shareholders for the first
        three quarters of the year;</font></p>
        <p><font size="2">&#149; Reviewed and discussed the
        Corporation's audited financial statements and report on
        Form 10-K for the fiscal year ended December 31, 2002
        with the Corporation's management;</font></p>
        <p><font size="2">&#149; Discussed with
        PricewaterhouseCoopers LLP the matters required to be
        discussed by SAS 61 (American Institute of Certified
        Public Accountants Codification of Statements on Auditing
        Standards), as amended; and</font></p>
        <p><font size="2">&#149; Received written disclosure
        regarding independence from PricewaterhouseCoopers LLP as
        required by Independence Standards Board Standard No. 1
        (Independence Discussions with Audit Committee) and
        discussed with PricewaterhouseCoopers LLP its
        independence.</font></p>
    </blockquote>
</blockquote>

<p><font size="2">Based on the foregoing, the Audit Committee
recommended to the Board that the Corporation's audited financial
statements prepared in accordance with US GAAP be included in the
Corporation's Annual Report on Form 10-K for the year ended
December 31, 2002 and that the Corporation's audited financial
statements prepared in accordance with Canadian GAAP, which
conform in all material respects with US GAAP, be included in the
Corporation's Annual Report to Shareholders.</font></p>

<p><font size="2"><b><i>Members of the Audit Committee </i></b></font></p>

<p><font size="2">Burton Winberg &#151; Chairman</font></p>

<p><font size="2">John L. Bitove</font></p>

<p><font size="2">Kenneth W. McArthur</font></p>

<p align="center"><font size="2"><b>ACQUISITION OF U.S. PRIVATE
CLIENT DIVISION OF CIBC</b></font></p>

<p><font size="2">On January 3, 2003, pursuant to an Asset
Purchase Agreement dated as of December 9, 2002 between the
Corporation, its wholly-owned subsidiary Viner Finance Inc.
(&quot;Viner Finance&quot;) and Canadian Imperial Bank of
Commerce (&quot;CIBC&quot;), the Corporation acquired the U.S.
Private Client Division of CIBC from CIBC and agreed to complete,
at a later date, the acquisition of the U.S. Asset Management
Division of CIBC World Markets Corp. The Corporation also
acquired rights to the &quot;Oppenheimer&quot; name under which
the U.S. Private Client and Asset Management Divisions were
operated. The Corporation has continued to use the Oppenheimer
for the acquired business and proposes to change its name and
that of Fahnestock to include the Oppenheimer name. </font></p>

<p><font size="2">The aggregate purchase price of approximately
$241 million was and is to be paid as follows:</font></p>

<blockquote>
    <blockquote>
        <p><font size="2">$13 million &#150; by Fahnestock from
        internal resources </font></p>
        <p><font size="2">$2 million &#150; will be paid by
        Fahnestock in cash on completion of the acquisition of
        the U.S. Asset Management Division of CIBC World Markets
        Corp. </font></p>
        <p><font size="2">$65 million &#150; proceeds from the
        issue by Viner Finance, to World Markets of a zero coupon
        promissory note </font></p>
        <p><font size="2">$161 million &#150; proceeds from the
        issue of debentures by E.A. Viner International Co.
        (&quot;Viner International&quot;) a wholly-owned
        subsidiary of the Corporation, to CIBC (i)</font></p>
    </blockquote>
</blockquote>

<p><font size="2">(i) Two debentures were issued by Viner
International (a) a $69,980,828 principal amount Variable Rate
Exchangeable Debenture due 2013 (the &quot;First Exchangeable
Debenture&quot;); and (b) a $90,841,572 principal amount
Convertible Debenture due 2013 (the &quot;Interim
Debenture&quot;). Subject to shareholder approval (as described
under &quot;Conversion of E.A. Viner International Co.
Convertible Debenture&quot; above), the Interim Debenture is
convertible into a $90,841,572 principal amount Variable Rate
Exchangeable Debenture due 2013 (the &quot;Second Exchangeable
Debenture&quot;). (The First Exchangeable Debenture, the Second
Exchangeable Debenture and the Interim Debenture are hereinafter
collectively referred to as the &quot;Debentures&quot;). The
First Exchangeable Debenture and the Second Exchangeable
Debenture (when issued) will be exchangeable for an aggregate of
6,932,000 Class A Shares (approximately 35% of the Class A Shares
on a fully diluted basis) at the rate of $23.20 per share (the
closing price of the Class A Shares on December 6, 2002). The
First and Second Exchangeable Debentures provide for an
adjustment of up to an additional issuance of approximately
208,000 Class A Shares if the Debentures are exchanged, the
holder(s) of the Debentures exercise their rights to have the
resulting Class A Shares sold and realize a price of less than
$23.20 per share.</font></p>

<p><font size="2">The First Exchangeable Debenture:</font></p>

<blockquote>
    <p><font size="2">(a) bears interest at the rate of 3% in the
    first year, 4% in years two through four and 5% in years five
    through maturity;</font></p>
    <p><font size="2">(b) is repayable on January 2, 2013 subject
    to earlier repayment on the exercise by the holder of rights
    to require the Debenture to be redeemed (x) between January
    2, 2110 and May 3, 2110, in which case the redemption price
    for the Debenture will be the principal amount of the
    Debenture plus accrued and unpaid interest payable in cash,
    or (y) within 120 days of the death of Mr. A.G. Lowenthal, in
    which case the redemption price for the Debenture will be the
    principal amount of the Debenture plus accrued and unpaid
    interest payable as to 25% in cash and as to 75% by the
    issuance of a debenture of Viner International with terms
    identical to the Debenture except that such debenture shall
    bear interest at the rate of 9.75% and;</font></p>
    <p><font size="2">(c) is repayable on the occurrence of
    standard events of default which include defaults in payment
    of principal or interest when due, certain cross defaults and
    noncompliance with the terms of the Debenture. </font></p>
</blockquote>

<p><font size="2">The Second Exchangeable Debenture (when issued)
will have the same terms.</font></p>

<p><font size="2">In addition to the conversion feature described
above, the Interim Debenture:</font></p>

<blockquote>
    <p><font size="2">(a) is repayable on January 2, 2006,
    subject to earlier repayment on the exercise by the holder of
    the right to require the Debenture to be redeemed within 120
    days of the death of Mr. A.G. Lowenthal, in which case the
    redemption price for the Debenture will be the principal
    amount plus accrued and unpaid interest payable as to 25% in
    cash and as to 75% by the issuance of a debenture of Viner
    International with terms identical to the Debenture except
    that such debenture shall bear interest at 9.75%; and </font></p>
    <p><font size="2">(b) is repayable on the occurrence of
    standard events of default which include defaults in payment
    of principal or interest when due certain, cross defaults and
    noncompliance with the terms of the Debenture.</font></p>
</blockquote>

<p><font size="2">The Interim Debenture bears interest at the
rate of 3%. Should shareholder approval to the conversion of the
Interim Debenture into the Second Exchangeable Debenture not be
obtained on May 12, 2003 (the date of the Annual and Special
Meeting of Shareholders), the Interim Debenture will mature on
January 6, 2006 and will bear interest at the rate of 9.75% from
its issue date, January 6, 2003.</font></p>

<p><font size="2">The Debentures constitute senior indebtedness
of Viner International, may only be transferred in certain
circumstances and may only be amended with the consent of the
holders thereof.</font></p>

<p><font size="2">(ii) Pursuant to a Credit Agreement dated as of
January 2, 2003 between the Corporation and CIBC, the Corporation
is entitled to borrow up to $50 million from CIBC to fund broker
retention payments made and to be made to Oppenheimer brokers who
have accepted employment with Fahnestock. The Corporation has
drawn $25 million of the credit and expects to draw the balance
by July of 2003. The credit bears interest at CIBC&#146;s
&quot;U.S. base rate&quot; plus 2%. The credit matures on January
3, 2008 and is repayable in equal monthly installments.</font></p>

<p><font size="2">The acquisition of the U.S. Private Client and
Asset Management Division of CIBC World Markets Corp., including
the terms and provisions of the Asset Purchase Agreement, the
Stakeholders Agreement, the Debentures and related documents was
unanimously approved by the Corporation&#146;s Board of Directors
on December 8, 2002. In connection with its approval the Board
received an opinion dated December 9, 2002 of Berkshire Capital
Corporation that subject to the assumptions contained therein,
the consideration that was paid by the Corporation for the CIBC
World Markets Corp. assets was fair, from a financial point of
view, to the Corporation.</font></p>

<p><font size="2">In conjunction with the acquisition, the
Corporation Mr. A.G. Lowenthal and Mrs. Olga Roberts (and
entities controlled by them that own shares of the Corporation)
and CIBC entered into a Stakeholders Agreement dated December 9,
2002. The Agreement, among other things provides for the
following:</font></p>

<blockquote>
    <p><font size="2">(a) CIBC is subject to a stand-still with
    respect to its holdings of debentures and Class A Shares
    subject to certain exemptions set out in the Stakeholders
    Agreement;</font></p>
    <p><font size="2">(b) (i) In December of 2009 and 2012, (ii)
    following the death of A.G. Lowenthal, (iii) following the
    reduction of Mr. Lowenthal&#146;s ownership or control of
    Class A Shares to less than $2 million, or (iv) the transfer
    of any of his Class B Shares other then to permitted
    transferees, CIBC will be permitted to make an offer to
    acquire all of the outstanding shares of the Corporation on
    terms that must be acceptable to a majority of an Independent
    Committee of the Corporation&#146;s Board of Directors;</font></p>
    <p><font size="2">(c) Pursuant to a Registration Rights
    Agreement dated as of January 2, 2003 between the Corporation
    and CIBC, CIBC is afforded registration rights in respect of
    Class A Shares it acquires on the exchange of Debentures,
    such that the Corporation will assist CIBC in effecting a
    public offering of such shares;</font></p>
    <p><font size="2">(d) CIBC is provided observer rights at all
    of the Corporation&#146;s Board meetings held prior to the
    May 12, 2003 annual and special meeting of shareholders;</font></p>
    <p><font size="2">(e) CIBC has the right, which it has
    exercised, to have two persons it has designated (Mr. Richard
    Venn and Mr. Tony Molestina) nominated for election to the
    Corporation&#146;s Board at the May 12, 2003 annual and
    special meeting of shareholders. The Corporation has agreed
    to seek shareholder approval to an amendment to its articles
    and by-laws to increase the size of its Board so that it
    consists of up to 10 Directors. (See &quot;Amendment of
    Articles to Change the Number of Directors of the
    Corporation&quot;, &quot;Amendment of By-Laws&quot; and
    &quot;Election of Directors&quot; above);</font></p>
    <p><font size="2">(f) CIBC is provided pre-emptive rights to
    purchase Class A Shares in respect of future share issues for
    financing purposes.</font></p>
    <p><font size="2">(g) The Corporation will not divest itself
    of more than 50% of its brokerage business or make certain
    other fundamental changes without the consent of CIBC;</font></p>
    <p><font size="2">(h) Fahnestock and Mr. Lowenthal have a
    &quot;right of first offer&quot; on any disposition by CIBC
    of Debentures or Class A Shares and CIBC has a &quot;right of
    first offer&quot; on any disposition by Mr. Lowenthal of
    Class A Shares.</font></p>
    <p><font size="2">(i) Mr. Lowenthal, the owner of 50.7% of
    the Class B Shares and 20.7% of the Class A Shares and Mrs.
    Olga Roberts who owns or controls 2.57% of the Class A Shares
    and 44.5% of the Class B Shares have agreed to vote their
    shares in favour of:</font></p>
    <blockquote>
        <blockquote>
            <p><font size="2">(i) the transactions contemplated
            in the Asset Purchase Agreement requiring shareholder
            approval;</font></p>
            <p><font size="2">(ii) the amendments to the
            Corporation&#146;s articles and by-laws to increase
            the size of the Corporation&#146;s Board to up to 10
            Directors;</font></p>
            <p><font size="2">(iii) the conversion of the Viner
            International Interim Debenture into the Viner
            International Second Exchangeable Debenture;</font></p>
            <p><font size="2">(iv) any offer made by CIBC to
            acquire the outstanding shares of the Corporation
            made in accordance with the Stakeholders Agreement
            and approved by the Independent Committee of the
            Board of Directors (a &quot;Permitted Offer&quot;).</font></p>
        </blockquote>
    </blockquote>
    <p><font size="2">(j) Each of Mr. Lowenthal and Mrs. Roberts
    have also agreed to sell all of the Class A and Class B
    Shares owned or controlled by them pursuant to the terms of a
    Permitted Offer.</font></p>
</blockquote>

<p><font size="2">The foregoing is a summary only of the
provisions of the Asset Purchase Agreement, the Debentures and
the Stakeholders Agreement. Copies of these agreements along with
related agreements have been filed with the Securities and
Exchange Commission as part of a Form 8-K dated as of January 2,
2003 and are available for inspection at the Corporation&#146;s
executive offices in Toronto or at the head office of Fahnestock
in New York. The acquisition by the Corporation of the CIBC
Oppenheimer businesses is also described in the
Corporation&#146;s annual report for the year ended December 31,
2002 and in the notes to Corporation&#146;s financial statements
for the year ended December 31, 2002.</font></p>

<p align="center"><font size="2"><b>SHAREHOLDER PROPOSALS </b></font></p>

<p><font size="2">The Business Corporations of Ontario (the
&quot;OBCA&quot;), which governs the Corporation, provides that a
shareholder entitled to vote at a meeting of shareholders may, in
accordance with the provisions of the OBCA, submit a notice of a
proposal to the Corporation that the shareholder wishes to be
considered by the shareholders entitled to vote at a meeting of
shareholders. In order for any shareholder proposal, for the next
meeting of shareholders of the Corporation following the May 12,
2003 meeting, or any adjournment thereof, to be included in the
Management Information Circular for such meeting, the proposal
must comply with the provisions of the OBCA and be submitted to
the Corporation at its registered office at 20 Eglinton Avenue
West, Suite 1110, Toronto, Ontario M4R 1K8 (Atten: Secretary)
prior to March 15, 2004 in the case of the Corporation&#146;s
2004 annual meeting of shareholders or at least 60 days prior to
any special meeting of shareholders.</font></p>

<p align="center"><font size="2"><b>INCORPORATION BY REFERENCE</b></font></p>

<p><font size="2">The Corporation&#146;s consolidated financial
statements, including its consolidated balance sheets for the
years ended December 31, 2002 and December 31, 2001, its
consolidated statements of operations, changes in shareholders'
equity and cash flows for the years ended December 31, 2002, 2001
and 2000 and the notes thereto contained in the
Corporation&#146;s Annual Report to Shareholders for the fiscal
year ended December 31, 2002, a copy of which is being
contemporaneously distributed with this Management Information
Circular, are incorporated by reference into this Management
Information Circular. Any statement contained in a document which
is incorporated, or deemed to be incorporated, by reference into
this Management Information Circular, shall be considered
modified or superseded for purposes of this Management
Information Circular to the extent that a statement contained in
this Management Information Circular or in any other subsequently
filed document which also is, or is deemed to be, incorporated by
reference herein modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except
as so modified or superseded, to constitute a part of this
Management Information Circular.</font></p>

<p align="center"><font size="2"><b>DIRECTORS' APPROVAL</b></font></p>

<p><font size="2">The contents of and sending of this Management
Information Circular have been approved by the Board of Directors
of the Corporation.</font></p>

<p><font size="2">DATED AS OF this 17<sup>th</sup> day of March,
2003. </font></p>

<p>&nbsp;</p>

<p align="right"><font size="2">A.W. Oughtred</font></p>

<p align="right"><font size="2">Secretary</font></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p align="center"><font size="2"><b>SCHEDULE A</b></font></p>

<p align="center"><font size="2"><b>SPECIAL RESOLUTION
AUTHORIZING </b></font></p>

<p align="center"><font size="2"><b>ARTICLES OF AMENDMENT TO
CHANGE THE NAME OF THE CORPORATION</b></font></p>

<blockquote>
    <p align="center"><font size="2"></font></p>
    <p align="center">&nbsp;</p>
</blockquote>

<p align="center"><font size="2"><b>SCHEDULE B</b></font></p>

<p align="center"><font size="2"><b>SPECIAL RESOLUTION
AUTHORIZING </b></font></p>

<p align="center"><font size="2"><b>ARTICLES OF AMENDMENT TO
CHANGE THE NUMBER OF DIRECTORS </b></font></p>

<p align="center"><font size="2"></font></p>

<p align="center"><font size="2"><b>SCHEDULE C</b></font></p>

<p align="center"><font size="2"><b>RESOLUTION CONFIRMING</b></font></p>

<p align="center"><font size="2"><b>AMENDMENT TO BY-LAWS</b></font></p>

<p>&nbsp;</p>

<p align="center"><font size="2"></font></p>

<p align="center"><font size="2"><b>SCHEDULE D</b></font></p>

<p align="center"><font size="2"><b>RESOLUTION APPROVING
CONVERSION OF </b></font></p>

<p align="center"><font size="2"><b>E.A. VINER INTERNATIONAL CO.
CONVERTIBLE DEBENTURE</b></font></p>

<blockquote>
    <p align="center"><font size="2"></font></p>
    <p align="center">&nbsp;</p>
</blockquote>

<p align="center"><font size="2"><b>SCHEDULE E</b></font></p>

<p align="center"><font size="2"><b>RESOLUTION APPROVING </b></font></p>

<p align="center"><font size="2"><b>ISSUE OF CLASS A SHARES TO
MANAGERS OF THE OPPENHEIMER DIVISION </b></font></p>

<p align="center"><font size="2"><b>OF FAHNESTOCK &amp; CO. INC.</b></font></p>

<blockquote>
    <p align="center"><font size="2"></font></p>
    <p align="center">&nbsp;</p>
</blockquote>

<p align="center"><font size="2"><b>SCHEDULE F</b></font></p>

<p align="center"><font size="2"><b>RESOLUTION APPROVING </b></font></p>

<p align="center"><font size="2"><b>ISSUE OF CLASS A SHARES TO
FAHNESTOCK &amp; CO. INC. 401(K) PLAN</b></font></p>

<blockquote>
    <p align="center"><font size="2"></font></p>
    <p align="center">&nbsp;</p>
</blockquote>

<p align="center"><font size="2"><b>SCHEDULE G</b></font></p>

<p align="center"><font size="2"><b>AUDIT COMMITTEE CHARTER</b></font></p>

<p>&nbsp;</p>

<blockquote>
    <p align="center"><font size="2"></font></p>
    <p>&nbsp;</p>
    <p>&nbsp;</p>
</blockquote>

<p align="center"><font size="2">(LOGO)</font></p>

<p>&nbsp;</p>

<p align="right"><font size="2">PRINTED IN CANADA</font></p>

<p align="center"><font size="2">T06737</font></p>

<p>&nbsp;</p>

<p align="right"><font size="2"><b>Preliminary Copy for the
Information of <br>
the Securities Exchange Commission <br>
March 17, 2003</b></font></p>

<p align="center"><font size="2"><b>FAHNESTOCK VINER HOLDINGS
INC.</b></font></p>

<p align="center"><font size="2"><b>CLASS A NON-VOTING SHARES </b></font></p>

<p align="center"><font size="2"><b>Proxy, Solicited by
Management, for the</b></font></p>

<p align="center"><font size="2"><b>Annual and Special Meeting of
Shareholders,</b></font></p>

<p align="center"><font size="2"><b>May 12, 2003</b></font></p>

<p><font size="2">The undersigned holder of Class A non-voting
shares of Fahnestock Viner Holdings Inc. hereby appoints Mr. A.G.
Lowenthal or, failing him, Ms. E.K. Roberts or instead of either
of them</font></p>

<p><font size="2">________________________________________________________________________________</font></p>

<p><font size="2">as nominee, with full power of substitution, to
attend, vote and otherwise act for the undersigned at the Annual
and Special Meeting of Shareholders to be held on May 12, 2003
and at any adjournment thereof to the same extent and with the
same power as if the undersigned were personally present at the
said meeting or adjournment or adjournments thereof and hereby
revokes any proxy previously given; provided that the undersigned
shareholder specifies and directs the persons above named that
the Class A non-voting shares registered in the name of the
undersigned shall be:</font></p>

<blockquote>
    <p><font size="2">VOTED FOR [ ] AGAINST [ ] </font></p>
</blockquote>

<p><font size="2">(or if no specification is made, <b>VOTED FOR</b>)
the resolution approving the conversion of the E.A. Viner
International Co. Convertible Debenture referred to in item 7 of
the Notice of Meeting.</font></p>

<p>&nbsp;</p>

<p><font size="2">DATED , 2003.</font></p>

<blockquote>
    <blockquote>
        <blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <blockquote>
                                <blockquote>
                                    <blockquote>
                                        <p><font size="2">________________________________________________</font></p>
                                        <p align="center"><font
                                        size="2"><i>Signature of
                                        Shareholder</i></font></p>
                                    </blockquote>
                                    <p><font size="2"><b>A
                                    shareholder has the right to
                                    appoint a person, who need
                                    not be a shareholder, to
                                    represent him at the meeting
                                    other than the persons
                                    designated herein. To
                                    exercise this right a
                                    shareholder may insert the
                                    name of the desired person in
                                    the blank space provided
                                    herein or may submit another
                                    form of proxy.</b></font></p>
                                </blockquote>
                                <blockquote>
                                    <p><font size="2"><b>If any
                                    amendments or variations to
                                    matters identified in the
                                    notice of the meeting are
                                    proposed at the meeting or if
                                    any other matters properly
                                    come before the meeting, this
                                    proxy confers discretionary
                                    authority to vote on such
                                    amendments or variations or
                                    such other matters according
                                    to the best judgment of the
                                    person voting the proxy at
                                    the meeting.</b></font></p>
                                    <blockquote>
                                        <blockquote>
                                        <blockquote>
                                        <blockquote>
                                        <blockquote>
                                        <p><font size="2"><b>NOTES:</b></font></p>
                                        <p><font size="2">1.
                                        Please date and sign the
                                        form of proxy exactly as
                                        your name appears on this
                                        form of proxy. If a
                                        shareholder is a
                                        corporation the form of
                                        proxy must be executed
                                        under its corporate seal
                                        or by an officer or
                                        attorney thereof duly
                                        authorized. </font></p>
                                        <p><font size="2">2. Your
                                        name and address are
                                        recorded on this form of
                                        proxy, please report any
                                        change. </font></p>
                                        </blockquote>
                                        </blockquote>
                                        </blockquote>
                                        </blockquote>
                                    </blockquote>
                                </blockquote>
                            </blockquote>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
    </blockquote>
</blockquote>

<p align="right"><font size="2"><b>Preliminary Copy for the
Information of </b></font></p>

<p align="right"><font size="2"><b>the Securities Exchange
Commission </b></font></p>

<p align="right"><font size="2"><b>March 17, 2003</b></font></p>

<p align="center"><font size="2"><b>FAHNESTOCK VINER HOLDINGS
INC.</b></font></p>

<p align="center"><font size="2"><b>CLASS B VOTING SHARES </b></font></p>

<p align="center"><font size="2"><b>Proxy, Solicited by
Management, for the</b></font></p>

<p align="center"><font size="2"><b>Annual and Special Meeting of
Shareholders,</b></font></p>

<p align="center"><font size="2"><b>May 12, 2003</b></font></p>

<p><font size="2">The undersigned holder of Class B voting shares
of Fahnestock Viner Holdings Inc. hereby appoints Mr. A.G.
Lowenthal or, failing him, Ms. E.K. Roberts or instead of either
of them</font></p>

<p><font size="2">________________________________________________________________________________</font></p>

<p><font size="2">as nominee, with full power of substitution, to
attend, vote and otherwise act for the undersigned at the Annual
and Special Meeting of Shareholders to be held on May 12, 2003
and at any adjournment thereof to the same extent and with the
same power as if the undersigned were personally present at the
said meeting or adjournment or adjournments thereof and hereby
revokes any proxy previously given; provided that the undersigned
shareholder specifies and directs the persons above named that
the Class B voting shares registered in the name of the
undersigned shall be:</font></p>

<blockquote>
    <p><font size="2">1. VOTED [ ] WITHHELD FROM VOTING[ ] </font></p>
</blockquote>

<p><font size="2">(or if no specification is made, <b>VOTED FOR</b>)
for the appointment of PricewaterhouseCoopers LLP as auditors and
authorizing the directors to fix the remuneration of the
auditors.</font></p>

<blockquote>
    <p><font size="2">2. VOTED FOR [ ] AGAINST [ ] </font></p>
</blockquote>

<p><font size="2">(or if no specification is made, <b>VOTED FOR</b>)
the special resolution amending the articles of the Corporation
to change the name of the Corporation referred to in item 3 of
the Notice of Meeting.</font></p>

<blockquote>
    <p><font size="2">3. VOTED FOR [ ] AGAINST [ ] </font></p>
</blockquote>

<p><font size="2">(or if no specification is made, <b>VOTED FOR</b>)
the special resolution amending the articles of the Corporation
to change the number of directors of the Corporation referred to
in item 4 in the Notice of Meeting.</font></p>

<blockquote>
    <p><font size="2">4. VOTED FOR [ ] AGAINST [ ] </font></p>
</blockquote>

<p><font size="2">(or if no specification is made, <b>VOTED FOR</b>)
the resolution approving the amendment to the Corporation&#146;s
By-Laws referred to in item 5 in the Notice of Meeting.</font></p>

<blockquote>
    <p><font size="2">5. VOTED [ ] WITHHELD FROM VOTING ] </font></p>
</blockquote>

<p><font size="2">(or if no specification is made, <b>VOTED FOR</b>)
for the election of directors.</font></p>

<blockquote>
    <p><font size="2">6. VOTED FOR [ ] AGAINST [ ] </font></p>
</blockquote>

<p><font size="2">(or if no specification is made, <b>VOTED FOR</b>)
the resolution approving the conversion of the E.A. Viner
International Co. Convertible Debenture referred to in item 7 in
the Notice of Meeting.</font></p>

<blockquote>
    <p><font size="2">7. VOTED FOR [ ] AGAINST [ ] </font></p>
</blockquote>

<p><font size="2">(or if no specification is made, <b>VOTED FOR</b>)
the resolution approving the issue of up to [45,000] Class A
non-voting Shares to managers employed by the Oppenheimer
Division of Fahnestock &amp; Co. Inc. referred to in item 8 in
the Notice Meeting.</font></p>

<p><font size="2">8. VOTED FOR [ ] AGAINST [ ] </font></p>

<p><font size="2">(or if no specification is made, <b>VOTED FOR</b>)
the resolution approving the issue of up to 200,000 Class A
non-voting shares to the trustees of the Fahnestock &amp; Co.
Inc. 401(k) Plan.</font></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><font size="2">DATED , 2003.</font></p>

<blockquote>
    <blockquote>
        <blockquote>
            <blockquote>
                <blockquote>
                    <blockquote>
                        <blockquote>
                            <blockquote>
                                <blockquote>
                                    <blockquote>
                                        <blockquote>
                                        <blockquote>
                                        <blockquote>
                                        <blockquote>
                                        <p><font size="2">________________________________________________</font></p>
                                        <p align="center"><font
                                        size="2"><i>Signature of
                                        Shareholder</i></font></p>
                                        <p><font size="2"><b>A
                                        shareholder has the right
                                        to appoint a person, who
                                        need not be a
                                        shareholder, to represent
                                        him at the meeting other
                                        than the persons
                                        designated herein. To
                                        exercise this right a
                                        shareholder may insert
                                        the name of the desired
                                        person in the blank space
                                        provided herein or may
                                        submit another form of
                                        proxy.</b></font></p>
                                        <p><font size="2"><b>If
                                        any amendments or
                                        variations to matters
                                        identified in the notice
                                        of the meeting are
                                        proposed at the meeting
                                        or if any other matters
                                        properly come before the
                                        meeting, this proxy
                                        confers discretionary
                                        authority to vote on such
                                        amendments or variations </b></font></p>
                                        <p><font size="2"><b>or
                                        such other matters
                                        according to the best
                                        judgment of the person
                                        voting the proxy at the
                                        meeting.</b></font></p>
                                        <p><font size="2"><b>NOTES:</b></font></p>
                                        <p><font size="2">1.
                                        Please date and sign the
                                        form of proxy exactly as
                                        your name appears on this
                                        form of proxy. If a
                                        shareholder is a
                                        corporation the form of
                                        proxy must be executed
                                        under its corporate seal
                                        or by an officer or
                                        attorney thereof duly
                                        authorized. </font></p>
                                        <p><font size="2">2. Your
                                        name and address are
                                        recorded on this form of
                                        proxy, please report any
                                        change. </font></p>
                                        <p>&nbsp;</p>
                                        <p>&nbsp;</p>
                                        <p>&nbsp;</p>
                                        <p>&nbsp;</p>
                                        </blockquote>
                                        </blockquote>
                                        </blockquote>
                                        </blockquote>
                                    </blockquote>
                                </blockquote>
                            </blockquote>
                        </blockquote>
                    </blockquote>
                </blockquote>
            </blockquote>
        </blockquote>
    </blockquote>
</blockquote>

<p><font size="2">FAHNESTOCK VINER HOLDINGS INC. CUSIP #302921101
</font></p>

<p>&nbsp;</p>

<p><font size="2">In accordance with National Policy Statement
41/Shareholder Communication, beneficial shareholders may elect
annually to have their name added to an issuers supplemental
mailing list in order to receive financial statements. If you are
interested in receiving such statements, please complete and
return this form to Montreal Trust Company.</font></p>

<p><font size="2">NAME:
_______________________________________________________________________</font></p>

<p><font size="2">ADDRESS:
____________________________________________________________________</font></p>

<p><font size="2">SIGNATURE:
__________________________________________________________________</font></p>

<blockquote>
    <blockquote>
        <blockquote>
            <blockquote>
                <p><font size="2">I certify that I am a
                beneficial shareholder</font></p>
            </blockquote>
        </blockquote>
    </blockquote>
</blockquote>

<p align="center"><font size="2"><b>COMPUTERSHARE INVESTOR
SERVICES INC.</b></font></p>

<p align="center"><font size="2">C/O STOCK TRANSFER SERVICES</font></p>

<p align="center"><font size="2">100 UNIVERSITY AVENUE</font></p>

<p align="center"><font size="2">TORONTO, CANADA</font></p>

<p align="center"><font size="2">M5J 2Y1</font></p>
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