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CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Market Integrity, Trade Execution and Settlement | ~12% | - UMIR and Market Integrity Rules - Order Types, Execution and Settlement Processes |
| Conflicts of Interest and Ethics | ~14–15% | - Client-Focused Reforms and Ethical Standards - Conflict Identification, Disclosure and Management |
| Securities and Managed Products | ~19% | - Equities, Fixed-Income and Managed Products - Fund Structures and Product Characteristics |
| Client Complaint Handling and Reporting | ~5% | - Escalation, Recordkeeping and Reporting - Complaint Management Framework |
| Overview of Regulatory Framework | ~10% | - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) - Market Infrastructure and Protection Funds |
| Market and Company Analysis | ~8% | - Investment Performance Benchmarks - Fundamental and Technical Analysis |
| Scope of Client Relationship, KYC and Suitability | ~15–18% | - Suitability Assessment and Obligations - Know Your Client (KYC) Requirements |
| Derivatives Fundamentals | ~5–8% | - Risk and Suitability for Derivatives - Options, Futures and Forwards Basics |
| Prospective Client Relationships | ~10% | - Relationship Discovery and Qualification - Know Your Prospect (KYP) and Disclosures |
CIRO Canadian Investment Regulatory Sample Questions:
1. An investment firm discovers a minor clerical error that caused a discrepancy in client transaction records. What is the most appropriate action under Investment Dealer and Partially Consolidated (IDPC) rules?
A) Correct the error immediately and notify the client of the change
B) Document the discrepancy for internal audit and address it during review
C) Report the issue to the federal anti-money laundering agency and restrict accounts
D) Correct the error and report the discrepancy to the Canadian Securities Administrators (CSA)
2. Which of the following is an expected impact of high portfolio turnover on investment returns?
A) It decreases the tax burden, which increases returns
B) It decreases the overall total risk of the portfolio
C) It increases transaction costs, which reduce returns
D) It guarantees higher investment returns for the client
3. What is the Investment Dealer's obligation regarding cost discussions for deferred sales charge products?
A) Disclose the deferred charges when they are going to be triggered
B) Avoid discussing deferred charges as they are managed by the fund provider
C) Deferred sales charges only apply to institutional clients
D) Explain upfront the potential charges triggered by early redemption
4. Why might a company choose to issue preferred shares instead of debt?
A) Preferred shares offer tax-deductible dividend payments that lower corporate tax expenses
B) Preferred shares do not create legal obligations to make interest or principal payments
C) Preferred shares provide shareholders with voting rights and a maturity date
D) Preferred shares are less expensive than debt due to their fixed dividend obligations
5. An investor is considering investing in a private equity fund. Which of the following features is most commonly associated with private equity funds?
A) They offer immediate returns with minimal risk, providing quick liquidity similar to publicly traded securities
B) They are usually structured like mutual funds and offer daily trading opportunities, providing high liquidity to investors
C) They involve actively managing and improving the performance of portfolio companies before exiting
D) They typically invest in publicly traded stocks and rely on market liquidity to generate returns
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: C |



