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EXHIBIT 33.1

Report on Assessment of Compliance
with Applicable Servicing Criteria forCovered Bonds by The Bank of Nova Scotia

January 29, 2015

1. The Bank of Nova Scotia (the “Bank”)
is responsible for assessing compliance with the servicing criteria applicable to it in its capacity as Servicer and in its capacity
as Cash Manager set forth in paragraph (d) of Item 1122 of Regulation AB as of October 31, 2014 and for the period from November
1, 2013 through October 31, 2014 (the “Reporting Period”) as set forth in Exhibit A hereto.

2. Except as set forth in paragraph 3 below,
the Bank used the criteria set forth in paragraph (d) of Item 1122 of Regulation AB to assess compliance with the applicable servicing
criteria.

3. The Bank has determined that the criteria
listed in the column titled “Inapplicable Servicing Criteria” on Exhibit A hereto (collectively, the “Inapplicable
Servicing Criteria”) are not applicable to the Bank based on the activities the Bank performs with respect to servicing residential
mortgage loans for covered bonds. The criteria set forth in paragraph (d) of Item 1122 of Regulation AB other than the Inapplicable
Servicing Criteria are referred to as the “Applicable Servicing Criteria”.

4. The Bank complied, in all material respects,
with the Applicable Servicing Criteria as of October 31, 2014 and for the Reporting Period with respect to its servicing of the
residential mortgage loans in the cover pool.

5. KPMG LLP, an independent registered
public accounting firm, has issued an attestation report on the Bank’s assessment of compliance with the Applicable Servicing
Criteria as of October 31, 2014 and for the Reporting Period.



| | THE BANK OF NOVA SCOTIA                     
| | --------------------------------------------
| | By: /s/ Jeffrey C. Heath                    
| | Jeffrey C. Heath                            
| | Executive Vice-President and Group Treasurer






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Exhibit A

|SERVICING CRITERIA | APPLICABLESERVICINGCRITERIA                                                                                                                                                                                                                                       | INAPPLICABLESERVICINGCRITERIA
|------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------
|Reference          | Criteria                                                                                                                                                                                                                                                          | PerformedbyServicer          
|                   | General Servicing Criteria                                                                                                                                                                                                                                        |                              
|1122(d)(l)(i)      | Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.                                                                                                          |                              
|1122(d)(l)(ii)     | If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.                                                              |                              
|1122(d)(l)(iii)    | Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.                                                                                                                                                 |                              
|1122(d)(l)(iv)     | A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements. |                              
|                   | Cash Collection and Administration                                                                                                                                                                                                                                |                              
|1122(d)(2)(i)      | Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements.                     |                              
|1122(d)(2)(ii)     | Disbursements made via wire transfer on behalf of an obligor or to an investor are                                                                                                                                                                                |                              








1 All payments to investors are
made to the applicable paying agent by the Bank as obligor on the covered bonds unless and until the Bank becomes insolvent. No
payments have been made to investors during the period. No distributions have been made by the Cash Manager and unless and until
the Bank becomes insolvent and a Notice to Pay is served on Scotiabank Covered Bond Guarantor Limited Partnership, the Cash Manager
does not distribute any amounts to investors from collections on the cover pool.




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|SERVICING CRITERIA | APPLICABLESERVICINGCRITERIA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | INAPPLICABLESERVICINGCRITERIA
|------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------
|Reference          | Criteria                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | PerformedbyServicer          
|                   | made only by authorized personnel.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                              
|1122(d)(2)(iii)    | Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.                                                                                                                                                                                                                                                                                                                                                                              |                              
|1122(d)(2)(iv)     | The related accounts1 for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.                                                                                                                                                                                                                                                                                                                                                 |                              
|1122(d)(2)(v)      | Each custodial account1 is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.                                                                                                                                                                                                                       |                              
|1122(d)(2)(vi)     | Unissued checks are safeguarded so as to prevent unauthorized access.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                              
|1122(d)(2)(vii)    | Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts1, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their |                              




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|SERVICING CRITERIA | APPLICABLESERVICINGCRITERIA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | INAPPLICABLESERVICINGCRITERIA
|------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------
|Reference          | Criteria                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | PerformedbyServicer          
|                   | original identification, or such other number of days specified in the transaction agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                              
|                   | Investor Remittances and Reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                              
|1122(d)(3)(i)      | Reports to investors, including
    those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission
    requirements. Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction
    agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are
    filed with the Commission as required by its rules and regulations; and (D) agree with investors’ or the trustee’s2records as to the total unpaid principal balance and number of pool assets serviced by the Servicer. |                              
|1122(d)(3)(ii)     | Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                              
|1122(d)(3)(iii)    | Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              
|1122(d)(3)(iv)     | Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                              
|                   | Pool Asset Administration                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              
|1122(d)(4)(i)      | Collateral or security on pool assets is maintained as required by the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | √                            






2 The records are maintained
by the Servicer, not the trustee.




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|SERVICING CRITERIA | APPLICABLESERVICINGCRITERIA                                                                                                                                                                                                                                                                                                                                                                                  | INAPPLICABLESERVICINGCRITERIA
|------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------
|Reference          | Criteria                                                                                                                                                                                                                                                                                                                                                                                                     | PerformedbyServicer          
|                   | transaction agreements or related asset pool documents.                                                                                                                                                                                                                                                                                                                                                      |                              
|1122(d)(4)(ii)     | Pool assets and related documents are safeguarded as required by the transaction agreements.                                                                                                                                                                                                                                                                                                                 | √                            
|1122(d)(4)(iii)    | Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.                                                                                                                                                                                                                                  | √                            
|1122(d)(4)(iv)     | Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer’s obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related asset pool documents. | √                            
|1122(d)(4)(v)      | The Servicer’s records regarding the pool assets agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.                                                                                                                                                                                                                                                                    | √                            
|1122(d)(4)(vi)     | Changes with respect to the terms or status of an obligor’s account (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements and related pool asset documents.                                                                                                                                                          | √                            
|1122(d)(4)(vii)    | Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the transaction agreements.                                                                                                       | √                            




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|SERVICING CRITERIA | APPLICABLESERVICINGCRITERIA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | INAPPLICABLESERVICINGCRITERIA
|------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------
|Reference          | Criteria                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | PerformedbyServicer          
|1122(d)(4)(viii)   | Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).                                                               | √                            
|1122(d)(4)(ix)     | Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.                                                                                                                                                                                                                                                                                                                                                                                                                                 | √                            
|1122(d)(4)(x)      | Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s account documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable account documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related Accounts, or such other number of days specified in the transaction agreements. | √                            
|1122(d)(4)(xi)     | Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.                                                                                                                                                                              | √                            




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|SERVICING CRITERIA | APPLICABLESERVICINGCRITERIA                                                                                                                                                                                                         | INAPPLICABLESERVICINGCRITERIA
|------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------
|Reference          | Criteria                                                                                                                                                                                                                            | PerformedbyServicer          
|1122(d)(4)(xii)    | Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or omission. | √                            
|1122(d)(4)(xiii)   | Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.                           | √                            
|1122(d)(4)(xiv)    | Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.                                                                                                    | √                            
|1122(d)(4)(xv)     | Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.                                                       | √3                           






3 The Reserve Fund, which is maintained
in the GDA Account, is not funded until a ratings trigger has been breached, which has not occurred.

4 In certain circumstances where
a Swap Agreement is terminated, the Cash Manager will be required to enter into one or more new swaps with one or more third party
swap provider(s) to hedge the risks being hedged under the terms of the terminated Swap Agreement. These circumstances have not
yet occurred.