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CIRO CIRE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Overview of Canadian securities regulatory framework10%- Confidentiality, privacy, anti-spam and shareholder rights legislation
- Marketplaces and trading venues
- Criminal Code and financial crime
- Bank Act and Bankruptcy and Insolvency Act
- Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators
- Other investment industry regulators and agencies
- Role and authority of the Canadian Investment Regulatory Organization
- Anti-money laundering requirements
- Canadian Investor Protection Fund
- Investment Dealer registration and individual approval requirements
- Clearing agencies
Topic 2: Client complaint handling and reporting5%- Settlement agreements with clients
- Complaint policies, procedures and recordkeeping
- Client recourse options
- Investment Dealer complaint reporting obligations
- Investment Dealer obligations to clients
- CIRO and provincial regulator roles in complaint handling
- Client issues and potential liability
Topic 3: Securities, managed products, mutual funds and other investments19%- Mutual funds
- Equities
- Pooled products
- Exchange-traded funds
- Managed products
- Market indices
- Fixed income investment considerations
- Fixed income securities and products
- Asset classes
- Equity investment considerations
- Managed product investment considerations
- Other investments
Topic 4: Prospective client relationships10%- Retail and institutional clients
- Institutional client qualification
- Retail client information and risk profile
- Third parties and professional advisers
- Account agreements and welcome documentation
- Costs, fees, turnover and taxes
- Investment Dealer onboarding process
- Client recordkeeping
- Client relationship model
- Accredited investors and exemptions
Topic 5: Derivatives5%- Uses of derivatives
- Derivative trading strategies
- Derivative account administration
- Futures, forwards, swaps and contracts for difference
- Prohibited derivative trading practices
- Transactional elements of futures and options
- Options
- Listed and over-the-counter derivatives markets
Topic 6: Market and company analysis8%- Economic information and indicators
- Technical and statistical analysis tools
- Industry performance analysis
- Macroeconomic factors and policies
- Market theories and stock market behaviour
- Company performance analysis
- Company regulation, disclosure and investor rights
- Basic economic theories
- Macroeconomic effects on financial markets
Topic 7: Scope of client relationships15%- Know-your-product requirements
- Institutional client sophistication and suitability exemptions
- Retail Investment Dealer services
- Account appropriateness versus suitability
- Investment Representative role and client service
- Registered Representative role and client service
- Relationship disclosure
- Clients residing in the United States and other foreign jurisdictions
- Investment performance benchmarks
- Account appropriateness
- Trust, agency and fiduciary duty
- Escalation to subject matter experts
- Product due diligence
- Client suitability determination
- Suitability exemptions
- Institutional Investment Dealer services
- Investment management styles and strategies
Topic 8: Conflicts of interest and ethics15%- Ethics and regulatory rules
- Outside activities of Approved Persons
- Client confidentiality
- Information barriers and restricted lists
- Managing conflicts of interest
- Ethical principles and standards of conduct
- Ethical and legal responsibilities to clients
- CIRO and other ethical standards
- Positions of influence
- Personal financial dealings with clients
- Cybersecurity and confidential information
- Conflict identification, avoidance, addressing and disclosure
Topic 9: Market integrity, trade execution and settlement12%- Order types
- Reporting obligations
- Universal Market Integrity Rules
- Margin requirements
- Account types
- Gatekeeping for manipulative and deceptive practices
- UMIR gatekeeping obligations
- Order entry, trade processing, settlement and delivery
- Investment banking, research and corporate finance
- Order variations, cancellations and corrections
- Derivative trading agreements
- Order confirmation requirements

CIRO Canadian Investment Regulatory Sample Questions:

Question 1

What should a Registered Representative (RR) do if they unintentionally receive insider information about a publicly traded company?

A. Do not act and retain confidentiality to protect the source
B. Refrain from using the information and report to compliance
C. Act on the information to the benefit of their clients
D. Share the information with trusted colleagues for advice


Question 2

An Investment Representative (IR) executes a trade for a client and must confirm the details of the trade, including any associated fees and commissions. When should this confirmation be sent to the client?

A. Promptly after the trade is executed
B. Immediately before the trade is executed
C. Confirmations are not required
D. One day after the settlement date


Question 3

An Investment Dealer supplies its clients with specific information about its client account reporting.
Which of the following is true regarding the provision of information about client reporting?

A. It is recommended
B. It is mandatory
C. It is optional
D. It is useful


Question 4

An investment firm has a differential commission structure which rewards particular types of accounts.
What must an advisor do when recommending new accounts to clients?

A. Automatically recommend the account type with the lowest fees to avoid any perceived bias
B. Avoid recommending the accounts that reward higher commissions to prevent conflicts of interest
C. Recommend the account type that offers the advisor the highest commission to maximize personal earnings
D. Disclose the differential commission structure and ensure that the recommendation is in the client's best interest


Question 5

A shareholder in Canada receives a dividend payment from a Canadian corporation. Which of the following best describes how dividends are typically received in Canada?

A. Dividends are declared and distributed after shareholders submit a claim of dividend
B. Dividends are paid in a combination of stock and cash, where shareholders decide case by case
C. Dividends are automatically reinvested unless the shareholder opts out
D. Dividends are paid directly to the shareholder's bank or brokerage account


Solutions:

Question 1
Answer: B
Question 2
Answer: A
Question 3
Answer: B
Question 4
Answer: D
Question 5
Answer: D

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