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CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Market integrity, trade execution and settlement | 12% | - Margin requirements - Reporting obligations - Derivative trading agreements - Investment banking, research and corporate finance - Order confirmation requirements - Order types - Order variations, cancellations and corrections - Account types - Universal Market Integrity Rules - Order entry, trade processing, settlement and delivery - UMIR gatekeeping obligations - Gatekeeping for manipulative and deceptive practices |
| Topic 2: Prospective client relationships | 10% | - Institutional client qualification - Client relationship model - Client recordkeeping - Investment Dealer onboarding process - Account agreements and welcome documentation - Retail and institutional clients - Third parties and professional advisers - Retail client information and risk profile - Accredited investors and exemptions - Costs, fees, turnover and taxes |
| Topic 3: Conflicts of interest and ethics | 15% | - Ethical principles and standards of conduct - Ethical and legal responsibilities to clients - Personal financial dealings with clients - Client confidentiality - Ethics and regulatory rules - Conflict identification, avoidance, addressing and disclosure - Outside activities of Approved Persons - Positions of influence - Information barriers and restricted lists - Managing conflicts of interest - Cybersecurity and confidential information - CIRO and other ethical standards |
| Topic 4: Client complaint handling and reporting | 5% | - Investment Dealer complaint reporting obligations - Complaint policies, procedures and recordkeeping - Investment Dealer obligations to clients - Settlement agreements with clients - Client recourse options - CIRO and provincial regulator roles in complaint handling - Client issues and potential liability |
| Topic 5: Securities, managed products, mutual funds and other investments | 19% | - Exchange-traded funds - Other investments - Market indices - Equity investment considerations - Fixed income investment considerations - Equities - Asset classes - Mutual funds - Pooled products - Fixed income securities and products - Managed product investment considerations - Managed products |
| Topic 6: Overview of Canadian securities regulatory framework | 10% | - Bank Act and Bankruptcy and Insolvency Act - Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators - Role and authority of the Canadian Investment Regulatory Organization - Criminal Code and financial crime - Investment Dealer registration and individual approval requirements - Other investment industry regulators and agencies - Clearing agencies - Confidentiality, privacy, anti-spam and shareholder rights legislation - Anti-money laundering requirements - Marketplaces and trading venues - Canadian Investor Protection Fund |
| Topic 7: Market and company analysis | 8% | - Market theories and stock market behaviour - Industry performance analysis - Basic economic theories - Company regulation, disclosure and investor rights - Economic information and indicators - Macroeconomic effects on financial markets - Company performance analysis - Technical and statistical analysis tools - Macroeconomic factors and policies |
| Topic 8: Scope of client relationships | 15% | - Client suitability determination - Escalation to subject matter experts - Product due diligence - Investment performance benchmarks - Trust, agency and fiduciary duty - Suitability exemptions - Retail Investment Dealer services - Account appropriateness versus suitability - Relationship disclosure - Institutional client sophistication and suitability exemptions - Investment management styles and strategies - Registered Representative role and client service - Institutional Investment Dealer services - Clients residing in the United States and other foreign jurisdictions - Account appropriateness - Investment Representative role and client service - Know-your-product requirements |
| Topic 9: Derivatives | 5% | - Futures, forwards, swaps and contracts for difference - Options - Transactional elements of futures and options - Uses of derivatives - Derivative trading strategies - Prohibited derivative trading practices - Listed and over-the-counter derivatives markets - Derivative account administration |
CIRO Canadian Investment Regulatory Sample Questions:
1. Which method is typically used to calculate the value of most equity indices?
A) Adding dividend yields of included companies divided by total number of companies
B) Using a weighted average based on the market capitalization of each company
C) Using the median stock price of the included companies for index calculation
D) Adding stock prices of included companies divided by total number of companies
2. How does an advisory account differ from a managed account?
A) They can be used to provide access to complex investments
B) They are provided to retail clients and institutional clients
C) The client retains control over investment decisions
D) The investment decisions are made by a Portfolio Manager
3. Which of the following accurately describes a key characteristic of mutual fund trusts?
A) They are restricted to investing in government bonds and cannot hold equity investments
B) They are subject to a flat tax rate, regardless of the income they generate
C) They invest in a diversified portfolio of assets and pass on income to unitholders
D) They issue shares that can be traded on the stock exchange, similar to stocks
4. Which of the following best describes the key difference between a call option and a put option in an options contract?
A) A call option gives the holder the right to sell an asset; a put option allows buying at market price
B) A call option buys at a fixed price; a put option gives the holder rights to future dividends
C) A call option allows the holder to buy, while a put option allows the holder to sell, at a fixed price
D) A call option lets the holder sell, and a put option lets the holder buy, an asset at a set price
5. An employee of an Investment Dealer may not, directly or indirectly, engage in any personal dealings with a client. Which of the following is considered a personal financial dealing?
A) Borrowing from a client's firm whose normal course of business includes lending money
B) Accepting non-monetary consideration in return for priority treatment
C) Acting as Power of Attorney where the client is a Related Person
D) Borrowing from a client whose normal course of business includes lending money
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: B |
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