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CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Scope of Client Relationship, KYC and Suitability | ~15–18% | - Know Your Client (KYC) Requirements - Suitability Assessment and Obligations |
| Topic 2: Market Integrity, Trade Execution and Settlement | ~12% | - UMIR and Market Integrity Rules - Order Types, Execution and Settlement Processes |
| Topic 3: Conflicts of Interest and Ethics | ~14–15% | - Client-Focused Reforms and Ethical Standards - Conflict Identification, Disclosure and Management |
| Topic 4: Overview of Regulatory Framework | ~10% | - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) - Market Infrastructure and Protection Funds |
| Topic 5: Client Complaint Handling and Reporting | ~5% | - Escalation, Recordkeeping and Reporting - Complaint Management Framework |
| Topic 6: Securities and Managed Products | ~19% | - Fund Structures and Product Characteristics - Equities, Fixed-Income and Managed Products |
| Topic 7: Market and Company Analysis | ~8% | - Investment Performance Benchmarks - Fundamental and Technical Analysis |
| Topic 8: Prospective Client Relationships | ~10% | - Know Your Prospect (KYP) and Disclosures - Relationship Discovery and Qualification |
| Topic 9: Derivatives Fundamentals | ~5–8% | - Risk and Suitability for Derivatives - Options, Futures and Forwards Basics |
CIRO Canadian Investment Regulatory Sample Questions:
1. The Ombudsman for Banking Services and Investments (OBSI) has recommended that a firm compensate a client. If the firm refuses to comply, what action can OBSI take?
A) Do nothing as the recommendation is not binding
B) Make a public statement about the Investment Dealer
C) Enforce the recommendation via the Canadian courts
D) Revoke the Investment Dealer's registration
2. What role do margin requirements play in managing risk for both short and long positions?
A) They increase the amount of capital needed but do not reduce the leverage available
B) They apply exclusively to short positions, with no impact on long positions
C) They are not enforced for accounts where trades are executed at the dealer's discretion
D) They require clients to maintain sufficient funds to cover losses in both short and long positions
3. A central bank raises interest rates to address rising inflation. What is the most likely effect of this policy on the economy?
A) Reduced consumer spending and lower inflation
B) Increased consumer spending and higher inflation
C) Higher demand for goods and services
D) Increased borrowing by businesses and individuals
4. A company's financial analyst is reviewing the company's financial status as of the end of the fiscal year. Which financial statement will provide the necessary details about the company's assets and liabilities at that specific point in time?
A) Statement of Financial Position
B) Statement of Cash Flows
C) Statement of Comprehensive Income
D) Income Statement
5. Under CIRO rules, which of the following must an exchange-traded fund (ETF) disclose to potential investors before they invest?
A) The personal investment goals of the fund manager
B) A summary of the ETF's tax implications on dividends and capital gains
C) The ETF's investment strategy, risks, and fees
D) The names of all underlying assets in the ETF
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: C |
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