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CIRO CIRE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Conflicts of interest and ethics15%- Positions of influence
- Personal financial dealings with clients
- CIRO and other ethical standards
- Conflict identification, avoidance, addressing and disclosure
- Ethical principles and standards of conduct
- Ethics and regulatory rules
- Cybersecurity and confidential information
- Client confidentiality
- Outside activities of Approved Persons
- Managing conflicts of interest
- Ethical and legal responsibilities to clients
- Information barriers and restricted lists
Topic 2: Securities, managed products, mutual funds and other investments19%- Fixed income investment considerations
- Mutual funds
- Equities
- Equity investment considerations
- Managed products
- Fixed income securities and products
- Pooled products
- Other investments
- Market indices
- Managed product investment considerations
- Exchange-traded funds
- Asset classes
Topic 3: Overview of Canadian securities regulatory framework10%- Bank Act and Bankruptcy and Insolvency Act
- Role and authority of the Canadian Investment Regulatory Organization
- Other investment industry regulators and agencies
- Criminal Code and financial crime
- Marketplaces and trading venues
- Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators
- Anti-money laundering requirements
- Clearing agencies
- Confidentiality, privacy, anti-spam and shareholder rights legislation
- Investment Dealer registration and individual approval requirements
- Canadian Investor Protection Fund
Topic 4: Scope of client relationships15%- Registered Representative role and client service
- Trust, agency and fiduciary duty
- Clients residing in the United States and other foreign jurisdictions
- Account appropriateness versus suitability
- Product due diligence
- Institutional client sophistication and suitability exemptions
- Relationship disclosure
- Know-your-product requirements
- Account appropriateness
- Escalation to subject matter experts
- Investment Representative role and client service
- Client suitability determination
- Investment performance benchmarks
- Retail Investment Dealer services
- Investment management styles and strategies
- Institutional Investment Dealer services
- Suitability exemptions
Topic 5: Prospective client relationships10%- Retail client information and risk profile
- Third parties and professional advisers
- Costs, fees, turnover and taxes
- Institutional client qualification
- Account agreements and welcome documentation
- Client relationship model
- Retail and institutional clients
- Client recordkeeping
- Accredited investors and exemptions
- Investment Dealer onboarding process
Topic 6: Market and company analysis8%- Macroeconomic effects on financial markets
- Company regulation, disclosure and investor rights
- Economic information and indicators
- Industry performance analysis
- Basic economic theories
- Macroeconomic factors and policies
- Technical and statistical analysis tools
- Market theories and stock market behaviour
- Company performance analysis
Topic 7: Market integrity, trade execution and settlement12%- Universal Market Integrity Rules
- Order entry, trade processing, settlement and delivery
- Account types
- Order confirmation requirements
- Order variations, cancellations and corrections
- Investment banking, research and corporate finance
- UMIR gatekeeping obligations
- Reporting obligations
- Margin requirements
- Derivative trading agreements
- Gatekeeping for manipulative and deceptive practices
- Order types
Topic 8: Client complaint handling and reporting5%- Complaint policies, procedures and recordkeeping
- Client recourse options
- Client issues and potential liability
- CIRO and provincial regulator roles in complaint handling
- Settlement agreements with clients
- Investment Dealer complaint reporting obligations
- Investment Dealer obligations to clients
Topic 9: Derivatives5%- Options
- Listed and over-the-counter derivatives markets
- Prohibited derivative trading practices
- Futures, forwards, swaps and contracts for difference
- Derivative account administration
- Uses of derivatives
- Transactional elements of futures and options
- Derivative trading strategies

CIRO Canadian Investment Regulatory Sample Questions:

Question 1

Which of the following is a key requirement of the client relationship model under the Investment Dealer and Partially Consolidated rules?

A. Offering always available client service for administrative queries
B. Prioritizing client decisions above the representative's advice
C. Providing disclosure of all material conflicts of interest to clients
D. Highlighting the client feedback on past client relationships


Question 2

An Investment Representative (IR) executes a trade for a client and must confirm the details of the trade, including any associated fees and commissions. When should this confirmation be sent to the client?

A. One day after the settlement date
B. Immediately before the trade is executed
C. Promptly after the trade is executed
D. Confirmations are not required


Question 3

A Registered Representative (RR) determines that an investment strategy is not suitable for a retail client. The client decides that they want to invest anyway. Which of the following should the RR do?

A. Seek advice from a self-regulatory authority
B. Recommend an alternative action that is suitable
C. Refuse to undertake the investment strategy
D. Report the request as an unacceptable trade


Question 4

A trader wants to apply a bearish strategy using options to profit from an expected decline in the price of a commodity. What is the most suitable approach?

A. Purchase a put option
B. Sell a put option
C. A long future position
D. Purchase a call option


Question 5

Where would a retail client of an Investment Dealer find a description of its complaint handling procedures?

A. The Account Opening Agreement
B. The Fee Disclosure Document
C. The know-your-client (KYC) Information Form
D. The Relationship Disclosure


Solutions:

Question 1
Answer: C
Question 2
Answer: C
Question 3
Answer: B
Question 4
Answer: A
Question 5
Answer: D

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