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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Market integrity, trade execution and settlement | 12% | - Specialized trading agreements for derivative accounts - Universal Market Integrity Rules - UMIR gatekeeping obligations - Features of different order types - Order entry, trade management, settlement and delivery - Order variations, cancellations and corrections - Margin requirements - Functions of investment banking, research and corporate finance - Reporting obligations to firms and regulators - Features of different account types - Order confirmation requirements - Gatekeeping requirements for manipulative and deceptive practices, unacceptable activities and front running |
| Topic 2: Overview of Canadian securities regulatory framework | 10% | - Purpose and implications of the Bank Act and Bankruptcy and Insolvency Act - Other applicable laws including confidentiality, privacy, anti-spam, company disclosure and shareholder rights - Investment Dealer registration and individual approval requirements - Role and authority of the Canadian Securities Administrators and provincial and territorial securities and derivatives regulators - Function and purpose of the Canadian Investor Protection Fund - Criminal Code and its application to financial crime - Function and purpose of other investment industry regulators and agencies - Function and purpose of investment industry marketplaces - Function and purpose of clearing agencies - Role and authority of the Canadian Investment Regulatory Organization - Anti-money laundering and anti-terrorist financing legislation and regulations |
| Topic 3: Conflicts of interest and ethics | 15% | - Role of cybersecurity in protecting confidential information - Ethical principles and standards of conduct for Approved Persons and Investment Dealers - Ethical and legal responsibilities to clients - Activities outside an Investment Dealer - Client confidentiality policies and procedures - CIRO and other ethical standards of conduct - Importance of managing conflicts of interest - Importance of ethics and its relationship to rules - Requirements regarding positions of influence - Inappropriate or prohibited personal financial dealings with clients - Information controls, barriers, firewalls and restricted lists - Conflicts of interest management process |
| Topic 4: Prospective client relationships | 10% | - Retail client information collection - Role of cost in product selection - Institutional client qualification requirements - Differences between retail and institutional clients - Exemptions under National Instrument 45-106 - Client relationship model - Impact of fees, turnover and taxes on investment returns - Investment Dealer onboarding process - Client record documentation, filing and maintenance - Third parties and other professionals in the client's life - Required account agreement and Firm Welcome package documents |
| Topic 5: Client complaint handling and reporting | 5% | - Role of CIRO and provincial regulators in the complaints handling framework - Investment Dealer obligations to clients - Prohibited practices in client settlement agreements - Potential client issues, liability and consequences - Investment Dealer complaint reporting obligations and penalties - Policies and procedures for reporting, handling and maintaining complaint records - Recourse available to dissatisfied clients |
| Topic 6: Market and company analysis | 8% | - Basic economic theories - Company performance analysis tools - Economic indicators and sources of information - Industry performance analysis - Technical and statistical analysis tools and information sources - Factors influencing the macroeconomy - Effects of macroeconomic factors on financial markets - Basic market theories and stock market behaviour - Rules relating to companies |
| Topic 7: Securities, managed products, mutual funds and other investments | 19% | - Considerations affecting fixed income investors - Considerations affecting mutual fund investors - Types of pooled products - Considerations affecting equity investors and potential shareholders - Considerations affecting managed product investors - Features, risks and returns of managed products - Types, features, risks and returns of equities - Other investments including hedge funds, structured products, alternative investment funds, crypto assets and ESG-related products - Types, features, risks and returns of fixed income securities and products - Considerations affecting exchange-traded fund investors - Asset classes generally sold and traded at an Investment Dealer - Purpose and uses of market indices |
| Topic 8: Scope of client relationships | 15% | - Product due diligence obligations - Typical services provided by institutional Investment Dealers - Account appropriateness obligations - Investment performance benchmarks - Suitability determination requirements for retail clients - Role of the Investment Representative in providing client service - Role of the Registered Representative in providing client service - Institutional client sophistication assessment and suitability exemptions - Purpose and content of relationship disclosure - Know-your-product obligations - Exemptions from suitability determination requirements - Typical services provided by retail Investment Dealers - Trust, agency and fiduciary duty - Systematic approaches to investment management and investment strategies - Requirements for working with clients in the United States and other foreign jurisdictions - Account appropriateness versus suitability determination - Internal escalation procedures and subject matter experts |
| Topic 9: Derivatives | 5% | - Features of other derivative contract types - Listed versus over-the-counter derivative markets - Basic uses of derivatives - Single and multi-legged derivative trading strategies - Administrative requirements for derivative trading with clients - Prohibited derivative trading practices - Features of options contract types - Basic transactional elements of futures and options |
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NEW QUESTION # 93
Which of the following could be a market order?
Answer: B
Explanation:
The correct answer is D . Under UMIR 1.1, a market order is an order to buy a security or derivative that is executed upon entry to a marketplace at the best ask price , or an order to sell that executes at the best bid price . This is essentially the wording used in D.
Unlike a limit order, a market order does not establish a maximum purchase price or minimum sale price. Its priority is prompt execution against the best available displayed liquidity, although the ultimate execution price can vary if available volume at the best price is insufficient.
Each other option describes a different recognized order type. A is a bundled order , defined by UMIR as an order combining a client order with a non-client or principal order, or both. B describes a limit order , because the purchaser specifies the maximum acceptable execution price. C describes a Closing Price Order
, which is entered subject to execution at the security's closing sale price.
The CIRE syllabus expressly requires candidates to understand different order types, including market orders, limit orders, immediate-or-cancel orders, fill-or-kill orders, on-stop orders and iceberg orders .
Study Guide Reference: CIRE Element 6.6 - Features of different order types; UMIR 1.1 - Market Order.
NEW QUESTION # 94
What impact do investor expectations about future interest rate changes typically have on the prices of fixed-income securities?
Answer: B
Explanation:
The correct answer is B . Fixed-income security prices and market interest rates generally move in opposite directions . When investors expect interest rates to fall, existing fixed-rate bonds become more attractive because their contractual coupon payments are relatively high compared with the yields expected on newly issued securities. Investors therefore bid up existing bond prices until their effective yields adjust downward toward prevailing market levels. CIRO expressly explains that bond prices generally rise when interest rates fall and decline when rates rise.
The same relationship can occur in anticipation of monetary-policy changes. Markets incorporate expectations before the actual rate decision. Bank of Canada analysis notes that falling inflation and expectations of monetary-policy easing in late 2023 contributed to declining bond yields and rising global and Canadian bond prices.
A and C are therefore incorrect because interest-rate expectations are among the principal factors affecting fixed-income valuations. D reverses the relationship: expected increases in market rates generally put downward pressure on prices of existing fixed-rate bonds because new securities can offer more competitive yields.
The magnitude of the price response also depends on factors including duration, maturity and coupon rate .
Longer-duration bonds generally experience greater price changes for a given change in yields than shorter- duration securities.
Study Guide Reference: CIRE Element 5 - macroeconomic factors and interest rates; Element 7.4-7.5
- fixed-income pricing, yield and interest-rate risk.
NEW QUESTION # 95
A central bank raises interest rates to address rising inflation. What is the most likely effect of this policy on the economy?
Answer: B
Explanation:
The correct answer is C . Raising policy interest rates is a form of contractionary monetary policy . Higher interest rates increase the cost of borrowing for households and businesses and generally increase the incentive to save rather than spend. Consequently, demand for interest-sensitive expenditures-including housing, durable goods and business investment-typically weakens. As aggregate demand slows relative to the economy's productive capacity, upward pressure on prices diminishes, helping bring inflation lower over time.
The Bank of Canada describes this transmission mechanism directly. Following rate increases, debt servicing and new borrowing become more expensive, households tend to spend less and save more , and demand growth slows. The Bank notes that monetary policy affects demand first and inflation afterward because the transmission process operates with a lag.
A and B describe the opposite of the intended effect of tighter monetary policy. Stronger spending and demand would normally increase rather than reduce inflationary pressure. D is also incorrect because higher borrowing costs generally discourage marginal borrowing by consumers and businesses instead of stimulating it.
The precise economic effect depends on factors such as household indebtedness, credit conditions, expectations and the strength of the economy, but the standard monetary-policy relationship tested by the CIRE is higher interest rates # weaker demand # reduced inflation pressure .
Study Guide Reference: CIRE Elements 5.1-5.2 - monetary policy, interest rates, inflation, economic cycles and the role of central banks.
NEW QUESTION # 96
Which of the following is an example of an instrument issued by the Canadian Securities Administrators (CSA)?
Answer: B
Explanation:
The correct answer is C . National Policy 11-202, Process for Prospectus Reviews in Multiple Jurisdictions , is a Canadian securities regulatory instrument developed through the Canadian Securities Administrators framework. The current consolidated policy governs the coordination and review of prospectuses filed in multiple Canadian jurisdictions, including the determination of the principal regulator, passport prospectuses, dual prospectuses, filing materials, regulatory review and issuance of receipts. The current consolidated version incorporates amendments effective November 28, 2025 .
The other choices originate from different regulatory bodies. IDPC Rules are CIRO's rules governing Investment Dealers and related Approved Persons. UMIR , the Universal Market Integrity Rules, are likewise administered by CIRO and govern trading conduct on Canadian marketplaces. FINTRAC guidelines arise from FINTRAC , the federal financial intelligence unit responsible for administering Canada's anti-money- laundering and anti-terrorist-financing regime; they are not CSA instruments.
The distinction is important for CIRE purposes because Canadian securities regulation is decentralized.
Provincial and territorial securities regulators cooperate through the CSA , while CIRO performs self- regulatory functions delegated within that broader framework. Candidates must therefore distinguish CSA national and multilateral instruments and policies from CIRO rules and federal regulatory requirements.
Study Guide Reference: CIRE Element 1 - Overview of the Canadian securities regulatory framework; CSA regulatory instruments and CIRO's regulatory role.
NEW QUESTION # 97
A risk-averse investor is considering investing in preferred shares. What is one key feature of preferred shares that may appeal to such investors?
Answer: D
Explanation:
The correct answer is A . Preferred shares generally provide investors with regular or fixed-rate dividend income and rank ahead of common shares for dividend payments and claims on residual corporate assets upon liquidation. CIRO's investment glossary describes a preferred share as providing a fixed dividend payable before dividends to common shareholders, together with a preferred claim on assets if the company is liquidated.
Ontario Securities Commission investor education similarly states that preferred stock generally offers regular income through fixed dividends, that preferred dividends are paid before common-share dividends, and that preferred shareholders have priority over common shareholders if the company is liquidated. This relative priority and greater income orientation may appeal to comparatively risk-averse equity investors.
However, preferred shares are not risk-free . Dividends may be suspended depending on the issuer and share terms, and preferred shareholders rank behind creditors and bondholders in insolvency. Therefore D is incorrect. B is incorrect because preferred shares normally carry limited or no voting rights. C is incorrect because preferred shares generally offer less capital-growth potential than common shares.
The CIRE syllabus specifically requires candidates to understand the features, risks and returns of common and preferred shares .
Study Guide Reference: CIRE Element 7.2 - Equities: common shares and preferred shares; Element
7.3 - advantages and disadvantages of share ownership.
NEW QUESTION # 98
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