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CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Market Integrity, Trade Execution and Settlement | ~12% | - UMIR and Market Integrity Rules - Order Types, Execution and Settlement Processes |
| Topic 2: Scope of Client Relationship, KYC and Suitability | ~15–18% | - Suitability Assessment and Obligations - Know Your Client (KYC) Requirements |
| Topic 3: Client Complaint Handling and Reporting | ~5% | - Complaint Management Framework - Escalation, Recordkeeping and Reporting |
| Topic 4: Overview of Regulatory Framework | ~10% | - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) - Market Infrastructure and Protection Funds |
| Topic 5: Prospective Client Relationships | ~10% | - Know Your Prospect (KYP) and Disclosures - Relationship Discovery and Qualification |
| Topic 6: Securities and Managed Products | ~19% | - Fund Structures and Product Characteristics - Equities, Fixed-Income and Managed Products |
| Topic 7: Conflicts of Interest and Ethics | ~14–15% | - Conflict Identification, Disclosure and Management - Client-Focused Reforms and Ethical Standards |
| Topic 8: Derivatives Fundamentals | ~5–8% | - Risk and Suitability for Derivatives - Options, Futures and Forwards Basics |
| Topic 9: Market and Company Analysis | ~8% | - Investment Performance Benchmarks - Fundamental and Technical Analysis |
CIRO Canadian Investment Regulatory Sample Questions:
A compliance officer at an Investment Dealer notices a significant increase in trades of low-liquidity stocks. What is the most likely compliance issue?
- A. Potential market manipulation or insider trading
- B. Insufficient diversification in the client's portfolio
- C. Inaccurate records of the trades executed
- D. Failure to file taxes on the proceeds from the trades
Correct Answer: A 🗳️
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How are new Canadian government bonds typically issued to the market?
- A. By private placement agreements with institutional brokers
- B. Through direct sales to retail investors at a posted price
- C. At a set rate offered to institutions with the highest bids
- D. By auction where Investment Dealers bid based on the yield
Correct Answer: D 🗳️
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Which of the following outlines how securities firms must handle client assets when facing financial failure?
- A. Canadian Investor Protection Fund (CIPF) Guidelines
- B. Universal Market Integrity Rules (UMIR)
- C. Bankruptcy and Insolvency Act, Part XII
- D. Bank Act, Part V
Correct Answer: C 🗳️
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Which is the best definition of a Registered Representative (RR)?
- A. An individual approved by the Canadian Investment Regulatory Organization (CIRO) authorized to trade or advise on securities, options and futures
- B. An individual approved by CIRO authorized to trade or advise on securities, options and futures
- C. An individual approved by CIRO to trade but not advise on securities, options and futures contracts
- D. An organization approved by CIRO authorized to trade or advise on securities, options and futures
Correct Answer: A 🗳️
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Which of the following is an expected impact of high portfolio turnover on investment returns?
- A. It guarantees higher investment returns for the client
- B. It increases transaction costs, which reduce returns
- C. It decreases the tax burden, which increases returns
- D. It decreases the overall total risk of the portfolio
Correct Answer: B 🗳️
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