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CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
| Overview of Regulatory Framework | ~10% | - Market Infrastructure and Protection Funds
- Securities Legislation and Regulators (CSA, CIRO, FINTRAC)
|
| Market Integrity, Trade Execution and Settlement | ~12% | - Order Types, Execution and Settlement Processes
- UMIR and Market Integrity Rules
|
| Market and Company Analysis | ~8% | - Investment Performance Benchmarks
- Fundamental and Technical Analysis
|
| Prospective Client Relationships | ~10% | - Know Your Prospect (KYP) and Disclosures
- Relationship Discovery and Qualification
|
| Conflicts of Interest and Ethics | ~14–15% | - Conflict Identification, Disclosure and Management
- Client-Focused Reforms and Ethical Standards
|
| Scope of Client Relationship, KYC and Suitability | ~15–18% | - Know Your Client (KYC) Requirements
- Suitability Assessment and Obligations
|
| Client Complaint Handling and Reporting | ~5% | - Escalation, Recordkeeping and Reporting
- Complaint Management Framework
|
| Derivatives Fundamentals | ~5–8% | - Risk and Suitability for Derivatives
- Options, Futures and Forwards Basics
|
| Securities and Managed Products | ~19% | - Fund Structures and Product Characteristics
- Equities, Fixed-Income and Managed Products
|
CIRO Canadian Investment Regulatory Sample Questions:
Question 1
A client has an account with their Investment Dealer. The dealer acts as principal in a trade for them at a price that is not as good as the prevailing market price. How would this trade be considered?
A. A violation of the best execution rule, as the trade was not executed on most favorable terms
B. An example of best execution, as the principal trade ensures that client has a reliable deal
C. A case of market manipulation, as the Investment Dealer intentionally influenced the market price
D. A violation of the margin rules, as the client did not have sufficient funds to cover the trade
Question 2
What should a Registered Representative (RR) do if a client requests to share sensitive investment documents through an unsecured platform?
A. Encrypt the documents according to firm policy and proceed without informing the client
B. Share the documents in the manner requested to maintain the client relationship
C. Explain the risks and offer secure alternatives for sharing information
D. Share the documents but alert the cybersecurity team so they can look for data breaches
Question 3
What information should the Relationship Disclosure specify in relation to benchmarks?
A. All the available benchmarks which could have been used to assess performance
B. At least three different benchmarks to assess performance
C. All the benchmarks which competitor products use to assess performance
D. A general explanation of how benchmarks might be used to assess performance
Question 4
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. An active bond investment strategy
B. A passive bond investment strategy
C. An active equity investment strategy
D. A passive equity investment strategy
Question 5
What is the function of the Canadian Securities Administrators (CSA) in regulating alternative trading systems (ATS)?
A. To manage the clearing and settlement of trades executed on ATS
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 ensure ATS platforms comply with securities laws and maintain transparency
Solutions:
Question 1 Answer: A | Question 2 Answer: C | Question 3 Answer: D | Question 4 Answer: C | Question 5 Answer: D |