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CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Overview of Canadian securities regulatory framework | 10% | - Other investment industry regulators and agencies - Clearing agencies - Criminal Code and financial crime - Confidentiality, privacy, anti-spam and shareholder rights legislation - Investment Dealer registration and individual approval requirements - Marketplaces and trading venues - Role and authority of the Canadian Investment Regulatory Organization - Canadian Investor Protection Fund - Anti-money laundering requirements - Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators - Bank Act and Bankruptcy and Insolvency Act |
| Topic 2: Client complaint handling and reporting | 5% | - Client issues and potential liability - Complaint policies, procedures and recordkeeping - CIRO and provincial regulator roles in complaint handling - Investment Dealer obligations to clients - Investment Dealer complaint reporting obligations - Settlement agreements with clients - Client recourse options |
| Topic 3: Prospective client relationships | 10% | - Client recordkeeping - Investment Dealer onboarding process - Retail client information and risk profile - Costs, fees, turnover and taxes - Institutional client qualification - Third parties and professional advisers - Retail and institutional clients - Account agreements and welcome documentation - Accredited investors and exemptions - Client relationship model |
| Topic 4: Scope of client relationships | 15% | - Trust, agency and fiduciary duty - Retail Investment Dealer services - Client suitability determination - Product due diligence - Clients residing in the United States and other foreign jurisdictions - Registered Representative role and client service - Know-your-product requirements - Investment management styles and strategies - Institutional client sophistication and suitability exemptions - Institutional Investment Dealer services - Account appropriateness versus suitability - Suitability exemptions - Investment performance benchmarks - Account appropriateness - Investment Representative role and client service - Escalation to subject matter experts - Relationship disclosure |
| Topic 5: Conflicts of interest and ethics | 15% | - Positions of influence - Ethics and regulatory rules - Managing conflicts of interest - Ethical principles and standards of conduct - Personal financial dealings with clients - CIRO and other ethical standards - Conflict identification, avoidance, addressing and disclosure - Ethical and legal responsibilities to clients - Outside activities of Approved Persons - Cybersecurity and confidential information - Information barriers and restricted lists - Client confidentiality |
| Topic 6: Derivatives | 5% | - Listed and over-the-counter derivatives markets - Derivative account administration - Uses of derivatives - Options - Futures, forwards, swaps and contracts for difference - Derivative trading strategies - Prohibited derivative trading practices - Transactional elements of futures and options |
| Topic 7: Securities, managed products, mutual funds and other investments | 19% | - Mutual funds - Pooled products - Equities - Other investments - Market indices - Fixed income securities and products - Exchange-traded funds - Equity investment considerations - Managed product investment considerations - Managed products - Fixed income investment considerations - Asset classes |
| Topic 8: Market integrity, trade execution and settlement | 12% | - Order entry, trade processing, settlement and delivery - Order variations, cancellations and corrections - Universal Market Integrity Rules - UMIR gatekeeping obligations - Derivative trading agreements - Reporting obligations - Order confirmation requirements - Investment banking, research and corporate finance - Margin requirements - Order types - Account types - Gatekeeping for manipulative and deceptive practices |
| Topic 9: Market and company analysis | 8% | - Basic economic theories - Company regulation, disclosure and investor rights - Company performance analysis - Market theories and stock market behaviour - Technical and statistical analysis tools - Macroeconomic factors and policies - Economic information and indicators - Macroeconomic effects on financial markets - Industry performance analysis |
CIRO Canadian Investment Regulatory Sample Questions:
Question 1
A trader wants to apply a bearish strategy using options to profit from an expected decline in the price of a commodity. What is the most suitable approach?
A. Purchase a put option
B. A long future position
C. Purchase a call option
D. Sell a put option
Question 2
What type of trading involves the use of algorithms to execute orders?
A. Trading strategies that are driven by market behaviours
B. Broker-executed trades based on dealer recommendations
C. Manual stock selection based on fundamental and technical analysis
D. Automated trading using mathematical models
Question 3
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. A case of market manipulation, as the Investment Dealer intentionally influenced the market price
C. A violation of the margin rules, as the client did not have sufficient funds to cover the trade
D. An example of best execution, as the principal trade ensures that client has a reliable deal
Question 4
Hedge fund is required to disclose certain information to investors. What is a key feature of these disclosure requirements in most jurisdictions?
A. Immediate reporting of daily performance to regulatory bodies
B. Disclosure of detailed investment strategies to all potential investors
C. Limited disclosure aimed at accredited or institutional investors
D. Full public transparency of portfolio holdings
Question 5
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. Adding stock prices of included companies divided by total number of companies
D. Using the median stock price of the included companies for index calculation
Solutions:
| Question 1 Answer: A | Question 2 Answer: D | Question 3 Answer: A | Question 4 Answer: C | Question 5 Answer: B |
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