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CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Derivatives Fundamentals | ~5–8% | - Options, Futures and Forwards Basics - Risk and Suitability for Derivatives |
| Topic 2: Prospective Client Relationships | ~10% | - Know Your Prospect (KYP) and Disclosures - Relationship Discovery and Qualification |
| Topic 3: Conflicts of Interest and Ethics | ~14–15% | - Client-Focused Reforms and Ethical Standards - Conflict Identification, Disclosure and Management |
| Topic 4: Market Integrity, Trade Execution and Settlement | ~12% | - UMIR and Market Integrity Rules - Order Types, Execution and Settlement Processes |
| Topic 5: Client Complaint Handling and Reporting | ~5% | - Complaint Management Framework - Escalation, Recordkeeping and Reporting |
| Topic 6: Scope of Client Relationship, KYC and Suitability | ~15–18% | - Know Your Client (KYC) Requirements - Suitability Assessment and Obligations |
| Topic 7: Market and Company Analysis | ~8% | - Investment Performance Benchmarks - Fundamental and Technical Analysis |
| Topic 8: Overview of Regulatory Framework | ~10% | - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) - Market Infrastructure and Protection Funds |
| Topic 9: Securities and Managed Products | ~19% | - Fund Structures and Product Characteristics - Equities, Fixed-Income and Managed Products |
CIRO Canadian Investment Regulatory Sample Questions:
A fund takes advantage of corporate actions such as takeovers and mergers to gain an investment advantage. What type of investing is this strategy associated with?
- A. A passive bond investment strategy
- B. A passive equity investment strategy
- C. An active bond investment strategy
- D. An active equity investment strategy
Correct Answer: D 🗳️
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What should a Registered Representative (RR) do if they unintentionally receive insider information about a publicly traded company?
- A. Share the information with trusted colleagues for advice
- B. Refrain from using the information and report to compliance
- C. Do not act and retain confidentiality to protect the source
- D. Act on the information to the benefit of their clients
Correct Answer: B 🗳️
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Which of the following is an example of an instrument issued by the Canadian Securities Administrators (CSA)?
- A. National Policy 11-202: Process for Prospectus Reviews
- B. Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) guidelines
- C. Universal Market Integrity Rules (UMIR)
- D. Investment Dealer Partially Consolidated Rules (IDPC)
Correct Answer: A 🗳️
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What must an Investment Dealer include in a remediation plan when addressing a capital deficiency?
- A. A detailed timeline for restoring compliance and actions taken to mitigate risks
- B. A list of high-risk investments used to improve capital reserves
- C. A summary of penalties imposed on employees responsible for the shortfall
- D. A request to waive the capital requirement for a defined period
Correct Answer: A 🗳️
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What type of trading involves the use of algorithms to execute orders?
- A. Automated trading using mathematical models
- B. Manual stock selection based on fundamental and technical analysis
- C. Trading strategies that are driven by market behaviours
- D. Broker-executed trades based on dealer recommendations
Correct Answer: A 🗳️
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