CIRO CIRE - Canadian Investment Regulatory Exam
- Exam Code: CIRE
- Exam Name: Canadian Investment Regulatory Exam
- Updated: Aug 26, 2026
- Q & A: 112 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Market and company analysis | 8% | - Macroeconomic effects on financial markets - Technical and statistical analysis tools - Industry performance analysis - Company regulation, disclosure and investor rights - Macroeconomic factors and policies - Company performance analysis - Basic economic theories - Economic information and indicators - Market theories and stock market behaviour |
| Topic 2: Scope of client relationships | 15% | - Clients residing in the United States and other foreign jurisdictions - Institutional client sophistication and suitability exemptions - Account appropriateness - Know-your-product requirements - Retail Investment Dealer services - Account appropriateness versus suitability - Client suitability determination - Investment Representative role and client service - Suitability exemptions - Registered Representative role and client service - Investment management styles and strategies - Trust, agency and fiduciary duty - Investment performance benchmarks - Escalation to subject matter experts - Relationship disclosure - Product due diligence - Institutional Investment Dealer services |
| Topic 3: Market integrity, trade execution and settlement | 12% | - Order variations, cancellations and corrections - Investment banking, research and corporate finance - Account types - Order entry, trade processing, settlement and delivery - Order confirmation requirements - UMIR gatekeeping obligations - Reporting obligations - Order types - Margin requirements - Derivative trading agreements - Gatekeeping for manipulative and deceptive practices - Universal Market Integrity Rules |
| Topic 4: Derivatives | 5% | - Transactional elements of futures and options - Futures, forwards, swaps and contracts for difference - Prohibited derivative trading practices - Uses of derivatives - Options - Listed and over-the-counter derivatives markets - Derivative account administration - Derivative trading strategies |
| Topic 5: Conflicts of interest and ethics | 15% | - Positions of influence - Ethical and legal responsibilities to clients - Client confidentiality - Information barriers and restricted lists - Personal financial dealings with clients - Outside activities of Approved Persons - Conflict identification, avoidance, addressing and disclosure - Ethical principles and standards of conduct - Cybersecurity and confidential information - CIRO and other ethical standards - Ethics and regulatory rules - Managing conflicts of interest |
| Topic 6: Overview of Canadian securities regulatory framework | 10% | - Marketplaces and trading venues - Investment Dealer registration and individual approval requirements - Bank Act and Bankruptcy and Insolvency Act - Anti-money laundering requirements - Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators - Canadian Investor Protection Fund - Criminal Code and financial crime - Confidentiality, privacy, anti-spam and shareholder rights legislation - Other investment industry regulators and agencies - Clearing agencies - Role and authority of the Canadian Investment Regulatory Organization |
| Topic 7: Client complaint handling and reporting | 5% | - Investment Dealer obligations to clients - Client recourse options - Investment Dealer complaint reporting obligations - CIRO and provincial regulator roles in complaint handling - Complaint policies, procedures and recordkeeping - Settlement agreements with clients - Client issues and potential liability |
| Topic 8: Prospective client relationships | 10% | - Client relationship model - Accredited investors and exemptions - Client recordkeeping - Costs, fees, turnover and taxes - Retail client information and risk profile - Third parties and professional advisers - Investment Dealer onboarding process - Institutional client qualification - Retail and institutional clients - Account agreements and welcome documentation |
| Topic 9: Securities, managed products, mutual funds and other investments | 19% | - Managed products - Pooled products - Equity investment considerations - Fixed income investment considerations - Equities - Asset classes - Fixed income securities and products - Other investments - Managed product investment considerations - Exchange-traded funds - Mutual funds - Market indices |
1. What must an Approved Person understand about securities to comply with know-your-product (KYP) obligations?
A) Alternative securities that may be suitable
B) The market demand and media coverage
C) The securities' intended use by the client
D) The securities' structure, features, and risks
2. What information should the Relationship Disclosure specify in relation to benchmarks?
A) All the benchmarks which competitor products use to assess performance
B) All the available benchmarks which could have been used to assess performance
C) At least three different benchmarks to assess performance
D) A general explanation of how benchmarks might be used to assess performance
3. Which of the following statements best describes the benefit of holding a cumulative preferred share?
A) It allows companies to accumulate redemption rights over a set time
B) It accumulates interest on missed dividends until they are paid
C) It accumulates voting rights regardless of dividend payment status
D) It allows unpaid dividends to accumulate and be paid with priority
4. How many days does a client have to refer a complaint to the Ombudsman for Banking Services and Investments (OBSI) after getting a final response from a firm?
A) 180 days from the date that CIRO was notified
B) 180 days from the date of the firm's initial response
C) 180 days from the client receiving a final response
D) 180 days from the date the complaint was made
5. 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) A long future position
B) Purchase a call option
C) Sell a put option
D) Purchase a put option
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: D |
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