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CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Prospective Client Relationships | ~10% | - Relationship Discovery and Qualification - Know Your Prospect (KYP) and Disclosures |
| Topic 2: Derivatives Fundamentals | ~5–8% | - Risk and Suitability for Derivatives - Options, Futures and Forwards Basics |
| Topic 3: Overview of Regulatory Framework | ~10% | - Market Infrastructure and Protection Funds - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) |
| Topic 4: Market Integrity, Trade Execution and Settlement | ~12% | - UMIR and Market Integrity Rules - Order Types, Execution and Settlement Processes |
| Topic 5: Conflicts of Interest and Ethics | ~14–15% | - Client-Focused Reforms and Ethical Standards - Conflict Identification, Disclosure and Management |
| Topic 6: Market and Company Analysis | ~8% | - Fundamental and Technical Analysis - Investment Performance Benchmarks |
| Topic 7: Client Complaint Handling and Reporting | ~5% | - Escalation, Recordkeeping and Reporting - Complaint Management Framework |
| Topic 8: Scope of Client Relationship, KYC and Suitability | ~15–18% | - Know Your Client (KYC) Requirements - Suitability Assessment and Obligations |
| Topic 9: Securities and Managed Products | ~19% | - Fund Structures and Product Characteristics - Equities, Fixed-Income and Managed Products |
CIRO Canadian Investment Regulatory Sample Questions:
When assessing client suitability, what is the difference between risk tolerance and risk capacity?
- A. Risk tolerance is the ability to endure financial loss. Risk capacity is the client's preferred risk level
- B. Risk tolerance is the ability to endure financial loss. Risk capacity is willingness to accept risk
- C. Risk tolerance is the client's preferred risk level. Risk capacity is the willingness to accept risk
- D. Risk tolerance is the willingness to accept risk. Risk capacity is the ability to endure financial loss
Correct Answer: D 🗳️
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What is the function of the Canadian Securities Administrators (CSA) in regulating alternative trading systems (ATS)?
- A. To ensure ATS platforms comply with securities laws and maintain transparency
- B. To approve all trades placed and executed on ATS platforms
- C. To regulate the conduct of individual Investment Dealers on ATS platforms
- D. To manage the clearing and settlement of trades executed on ATS
Correct Answer: A 🗳️
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An Approved Person at an Investment Dealer has just helped a technology company go public. They also provided strategic advice on structuring the deal and pricing the shares. What is their primary role in this situation?
- A. Helping the company monitor stock price fluctuations
- B. Assisting the company in raising capital through the sale of securities
- C. Advising the company on tax strategies for their new capital
- D. Managing the company's portfolio of investments
Correct Answer: B 🗳️
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A central bank raises interest rates to address rising inflation. What is the most likely effect of this policy on the economy?
- A. Increased borrowing by businesses and individuals
- B. Increased consumer spending and higher inflation
- C. Reduced consumer spending and lower inflation
- D. Higher demand for goods and services
Correct Answer: C 🗳️
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An Investment Dealer is required to comply with which of the following when dealing with clients?
- A. Legislation, contract laws and regulations
- B. Regulation, guidance and codes
- C. Legislation, regulation and guidance
- D. Legislation, contract laws and codes
Correct Answer: A 🗳️
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