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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Securities, managed products, mutual funds and other investments | 19% | - Other investments including hedge funds, structured products, alternative investment funds, crypto assets and ESG-related products - Types, features, risks and returns of equities - Purpose and uses of market indices - Considerations affecting exchange-traded fund investors - Types of pooled products - Types, features, risks and returns of fixed income securities and products - Asset classes generally sold and traded at an Investment Dealer - Considerations affecting mutual fund investors - Considerations affecting managed product investors - Considerations affecting fixed income investors - Considerations affecting equity investors and potential shareholders - Features, risks and returns of managed products |
| Topic 2: Conflicts of interest and ethics | 15% | - Ethical and legal responsibilities to clients - Activities outside an Investment Dealer - Conflicts of interest management process - CIRO and other ethical standards of conduct - Inappropriate or prohibited personal financial dealings with clients - Ethical principles and standards of conduct for Approved Persons and Investment Dealers - Requirements regarding positions of influence - Information controls, barriers, firewalls and restricted lists - Role of cybersecurity in protecting confidential information - Importance of ethics and its relationship to rules - Client confidentiality policies and procedures - Importance of managing conflicts of interest |
| Topic 3: Scope of client relationships | 15% | - Suitability determination requirements for retail clients - Typical services provided by institutional Investment Dealers - Account appropriateness versus suitability determination - Know-your-product obligations - Systematic approaches to investment management and investment strategies - Purpose and content of relationship disclosure - Internal escalation procedures and subject matter experts - Role of the Investment Representative in providing client service - Institutional client sophistication assessment and suitability exemptions - Requirements for working with clients in the United States and other foreign jurisdictions - Trust, agency and fiduciary duty - Account appropriateness obligations - Role of the Registered Representative in providing client service - Typical services provided by retail Investment Dealers - Product due diligence obligations - Investment performance benchmarks - Exemptions from suitability determination requirements |
| Topic 4: Client complaint handling and reporting | 5% | - Role of CIRO and provincial regulators in the complaints handling framework - Potential client issues, liability and consequences - Investment Dealer complaint reporting obligations and penalties - Investment Dealer obligations to clients - Prohibited practices in client settlement agreements - Recourse available to dissatisfied clients - Policies and procedures for reporting, handling and maintaining complaint records |
| Topic 5: Derivatives | 5% | - Features of other derivative contract types - Basic transactional elements of futures and options - Features of options contract types - Prohibited derivative trading practices - Single and multi-legged derivative trading strategies - Administrative requirements for derivative trading with clients - Basic uses of derivatives - Listed versus over-the-counter derivative markets |
| Topic 6: Overview of Canadian securities regulatory framework | 10% | - Role and authority of the Canadian Investment Regulatory Organization - Purpose and implications of the Bank Act and Bankruptcy and Insolvency Act - Function and purpose of other investment industry regulators and agencies - Function and purpose of the Canadian Investor Protection Fund - Criminal Code and its application to financial crime - Investment Dealer registration and individual approval requirements - Function and purpose of investment industry marketplaces - Anti-money laundering and anti-terrorist financing legislation and regulations - Role and authority of the Canadian Securities Administrators and provincial and territorial securities and derivatives regulators - Other applicable laws including confidentiality, privacy, anti-spam, company disclosure and shareholder rights - Function and purpose of clearing agencies |
| Topic 7: Market and company analysis | 8% | - Technical and statistical analysis tools and information sources - Company performance analysis tools - Basic economic theories - Industry performance analysis - Basic market theories and stock market behaviour - Rules relating to companies - Effects of macroeconomic factors on financial markets - Economic indicators and sources of information - Factors influencing the macroeconomy |
| Topic 8: Market integrity, trade execution and settlement | 12% | - Order entry, trade management, settlement and delivery - Features of different order types - Functions of investment banking, research and corporate finance - Order confirmation requirements - Margin requirements - Universal Market Integrity Rules - Features of different account types - Order variations, cancellations and corrections - UMIR gatekeeping obligations - Gatekeeping requirements for manipulative and deceptive practices, unacceptable activities and front running - Reporting obligations to firms and regulators - Specialized trading agreements for derivative accounts |
| Topic 9: Prospective client relationships | 10% | - Investment Dealer onboarding process - Client relationship model - Third parties and other professionals in the client's life - Role of cost in product selection - Exemptions under National Instrument 45-106 - Impact of fees, turnover and taxes on investment returns - Client record documentation, filing and maintenance - Institutional client qualification requirements - Required account agreement and Firm Welcome package documents - Retail client information collection - Differences between retail and institutional clients |
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NEW QUESTION # 35
An Investment Representative (IR) at an Investment Dealer notices that a long-standing client, who typically trades conservative blue-chip stocks in moderate amounts, has suddenly started making frequent large trades in high-volatility penny stocks. What is the IR's best course of action under gatekeeping regulatory requirements?
Answer: A
NEW QUESTION # 36
What is the maximum sum that can be awarded under the CIRO's arbitration program?
Answer: C
Explanation:
The correct answer is D - $500,000 . CIRO's arbitration program provides an alternative dispute-resolution mechanism for eligible disputes between clients and CIRO-regulated Investment Dealers. Unlike an OBSI recommendation, an arbitration decision is legally binding , and CIRO rules require participating Investment Dealers to comply with the arbitrator's decision.
CIRO's current Arbitration FAQ states explicitly: "Through the CIRO Arbitration Program, arbitrators can award up to $500,000." CIRO's current financial-compensation comparison also lists the arbitration award limit as up to $500,000 , compared with OBSI's compensation recommendation limit of up to $350,000.
This distinction is examination-relevant because the available complaint and compensation channels differ in cost, formality and legal effect. OBSI is generally free to the consumer, but its recommendations are not binding; arbitration involves costs but produces a binding decision. Court proceedings have no comparable CIRO-imposed monetary award limit.
CIRO previously consulted on modernization proposals that included potentially increasing the arbitration limit, but the current operative CIRO investor guidance continues to specify $500,000 . Thus, $500,000- not $350,000, $650,000 or $750,000-is the applicable examination answer.
The CIRE syllabus explicitly requires understanding of OBSI, litigation and CIRO's arbitration program as client recourse mechanisms.
Study Guide Reference: CIRE Element 4.2 - Client Complaint Handling and Reporting: OBSI, litigation and CIRO arbitration.
NEW QUESTION # 37
When must an Investment Dealer consult with a client's trusted contact person?
Answer: D
Explanation:
The correct response is A . Under CIRO's Know-Your-Client requirements, a Dealer Member must take reasonable steps to obtain the name and contact information of a trusted contact person (TCP) , together with the client's written consent permitting contact. IDPC Rule 3202(4) provides for contact with the TCP regarding specified protective matters, including "possible financial exploitation of the client" and concerns about the client's mental capacity as it relates to making financial decisions. A therefore identifies the prescribed circumstances relevant to TCP contact.
A TCP is a protective contact, not a substitute decision-maker, attorney under a power of attorney, or person automatically authorized to direct transactions. Contact remains governed by the client's written consent and the limited purposes specified in the rule. D is therefore incorrect: routine account-performance information is not disclosed merely to obtain an objective opinion. B is incorrect because missing KYC information is addressed through KYC, documentation, account-opening and account-restriction procedures rather than by consulting the TCP. C is incorrect because disagreement with a competent client's investment decision is not itself a TCP-contact purpose.
The CIRE syllabus specifically identifies the trusted contact person as a third party whose role an Investment Dealer must understand, identify and document.
Study Guide Reference: CIRE Element 2.7 - role of third parties and trusted contact persons; IDPC Rule 3202(4).
NEW QUESTION # 38
When an employee of an Investment Dealer engages in an outside business activity what must they do?
Answer: B
Explanation:
The correct answer is B . An Approved Person cannot independently commence an outside activity without the sponsoring Investment Dealer being informed and approving the activity before it begins . IDPC Rule
2554 requires the Approved Person to inform the Dealer of the outside activity and obtain the Dealer's prior approval . CIRO guidance further requires Dealers to maintain robust pre-approval procedures, consider potential client confusion and conflicts of interest, implement effective controls and qualified supervision, and retain supporting records.
Thus, among the available choices, B accurately expresses the required advance Dealer authorization . The current IDPC rule itself uses the term "prior approval"; documented firm approval procedures give effect to this requirement. The CIRE syllabus specifically requires candidates to apply requirements governing activities outside an Investment Dealer, including conflict assessment, effective controls, supervision, due diligence for approvals and appropriate recordkeeping.
A is incorrect because monitoring and compliance supervision remain responsibilities of the Dealer rather than being left exclusively to the employee. C is not a requirement; an outside activity can be unrelated to securities business provided it satisfies regulatory and Dealer conditions. D is unrelated to whether an outside activity may be conducted.
Outside activities that create material conflicts that cannot be appropriately controlled in the client's best interest should not be permitted.
Study Guide Reference: CIRE Element 9.9 - Activities outside an Investment Dealer; IDPC Rule 2554.
NEW QUESTION # 39
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?
Answer: D
Explanation:
The correct answer is C . A trade confirmation documents a transaction that has already been executed and must therefore be delivered promptly following execution , rather than before the trade or after settlement.
Current CIRO IDPC Rule 3816 states that a Dealer Member must "promptly send the client a written confirmation" of purchases and sales of securities, precious-metals bullion and transactions in derivatives.
The confirmation provides the client with an independent record of key transaction information. Depending on the security and transaction, prescribed information includes the trade date, marketplace information, settlement date, quantity and description of the security, consideration, applicable regulatory fees and other required compensation information. This allows the client to verify that the Dealer executed the transaction according to the client's instructions and to identify errors quickly.
A is incorrect because settlement occurs after execution; waiting until after settlement does not satisfy the requirement to provide a prompt transaction confirmation. B is incorrect because confirmations are generally mandatory, subject only to specific regulatory exemptions, such as certain qualifying managed-account or institutional arrangements. D is impossible as a conventional trade confirmation because there has not yet been an executed transaction to confirm.
The CIRE syllabus specifically requires IRs to understand reporting on trades and the trade execution and settlement process.
Study Guide Reference: CIRE Elements 3.2 and 6 - reporting trades, trade execution, confirmations and settlement; IDPC Rule 3816.
NEW QUESTION # 40
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