CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Derivatives | 5% | - Futures, forwards, swaps and contracts for difference - Prohibited derivative trading practices - Options - Derivative trading strategies - Listed and over-the-counter derivatives markets - Transactional elements of futures and options - Derivative account administration - Uses of derivatives |
| Prospective client relationships | 10% | - Third parties and professional advisers - Institutional client qualification - Retail client information and risk profile - Client recordkeeping - Accredited investors and exemptions - Costs, fees, turnover and taxes - Account agreements and welcome documentation - Client relationship model - Retail and institutional clients - Investment Dealer onboarding process |
| Conflicts of interest and ethics | 15% | - Conflict identification, avoidance, addressing and disclosure - Ethical principles and standards of conduct - Personal financial dealings with clients - Outside activities of Approved Persons - Ethics and regulatory rules - Managing conflicts of interest - Cybersecurity and confidential information - CIRO and other ethical standards - Ethical and legal responsibilities to clients - Client confidentiality - Positions of influence - Information barriers and restricted lists |
| Market integrity, trade execution and settlement | 12% | - Gatekeeping for manipulative and deceptive practices - Order variations, cancellations and corrections - Margin requirements - Reporting obligations - Order confirmation requirements - Account types - Universal Market Integrity Rules - Order types - Investment banking, research and corporate finance - Derivative trading agreements - UMIR gatekeeping obligations - Order entry, trade processing, settlement and delivery |
| Securities, managed products, mutual funds and other investments | 19% | - Other investments - Mutual funds - Pooled products - Fixed income investment considerations - Asset classes - Managed product investment considerations - Equity investment considerations - Market indices - Equities - Exchange-traded funds - Fixed income securities and products - Managed products |
| Market and company analysis | 8% | - Technical and statistical analysis tools - Industry performance analysis - Company performance analysis - Economic information and indicators - Company regulation, disclosure and investor rights - Basic economic theories - Macroeconomic factors and policies - Market theories and stock market behaviour - Macroeconomic effects on financial markets |
| Client complaint handling and reporting | 5% | - Complaint policies, procedures and recordkeeping - Client issues and potential liability - Client recourse options - Investment Dealer obligations to clients - CIRO and provincial regulator roles in complaint handling - Settlement agreements with clients - Investment Dealer complaint reporting obligations |
| Overview of Canadian securities regulatory framework | 10% | - Bank Act and Bankruptcy and Insolvency Act - Marketplaces and trading venues - Anti-money laundering requirements - Canadian Investor Protection Fund - Investment Dealer registration and individual approval requirements - Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators - Clearing agencies - Confidentiality, privacy, anti-spam and shareholder rights legislation - Criminal Code and financial crime - Other investment industry regulators and agencies - Role and authority of the Canadian Investment Regulatory Organization |
| Scope of client relationships | 15% | - Account appropriateness - Institutional Investment Dealer services - Investment Representative role and client service - Clients residing in the United States and other foreign jurisdictions - Trust, agency and fiduciary duty - Relationship disclosure - Product due diligence - Suitability exemptions - Retail Investment Dealer services - Registered Representative role and client service - Client suitability determination - Institutional client sophistication and suitability exemptions - Investment management styles and strategies - Account appropriateness versus suitability - Know-your-product requirements - Investment performance benchmarks - Escalation to subject matter experts |
CIRO Canadian Investment Regulatory Sample Questions:
1. What is the primary mandate of the Office of the Superintendent of Financial Institutions (OSFI)?
A) Investigating securities fraud
B) Monitoring anti-money laundering compliance
C) Supervising federally-regulated financial institutions
D) Managing investor protection funds
2. In a competitive market, when the quantity demanded equals the quantity supplied, what is the result for the price of the good or service?
A) The price will decrease due to excess demand
B) The price will remain stable at the equilibrium point
C) The price will increase due to excess supply
D) The price will fluctuate unpredictably based on market sentiment
3. Hedge fund is required to disclose certain information to investors. What is a key feature of these disclosure requirements in most jurisdictions?
A) Disclosure of detailed investment strategies to all potential investors
B) Limited disclosure aimed at accredited or institutional investors
C) Full public transparency of portfolio holdings
D) Immediate reporting of daily performance to regulatory bodies
4. Which of the following implications arises from the application of the Criminal Code to financial crimes?
A) Canadian Investor Protection Fund (CIPF) must reimburse all clients affected by fraudulent activities committed by Investment Dealers
B) Financial institutions are required to implement mandatory risk assessments for client portfolios
C) Securities markets must be supervised by a federal agency to avoid fraudulent activities
D) Investment Dealers must develop anti-fraud policies to prevent criminal activities
5. What is the function of the Canadian Securities Administrators (CSA) in regulating alternative trading systems (ATS)?
A) To approve all trades placed and executed on ATS platforms
B) To manage the clearing and settlement of trades executed on ATS
C) To regulate the conduct of individual Investment Dealers on ATS platforms
D) To ensure ATS platforms comply with securities laws and maintain transparency
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: D |
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