CIRE PDF Practice Q&A's
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CIRO CIRE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Prospective Client Relationships | ~10% | - Know Your Prospect (KYP) and Disclosures - Relationship Discovery and Qualification |
| Overview of Regulatory Framework | ~10% | - Market Infrastructure and Protection Funds - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) |
| Market Integrity, Trade Execution and Settlement | ~12% | - Order Types, Execution and Settlement Processes - UMIR and Market Integrity Rules |
| Securities and Managed Products | ~19% | - Equities, Fixed-Income and Managed Products - Fund Structures and Product Characteristics |
| Client Complaint Handling and Reporting | ~5% | - Complaint Management Framework - Escalation, Recordkeeping and Reporting |
| Scope of Client Relationship, KYC and Suitability | ~15–18% | - Know Your Client (KYC) Requirements - Suitability Assessment and Obligations |
| Derivatives Fundamentals | ~5–8% | - Risk and Suitability for Derivatives - Options, Futures and Forwards Basics |
| Conflicts of Interest and Ethics | ~14–15% | - Conflict Identification, Disclosure and Management - Client-Focused Reforms and Ethical Standards |
| Market and Company Analysis | ~8% | - Investment Performance Benchmarks - Fundamental and Technical Analysis |
CIRO Canadian Investment Regulatory Sample Questions:
1. Investment Dealers must provide relationship disclosure to which of the following types of clients?
A) All clients except Institutional Clients
B) All clients except managed clients
C) All clients except non-discretionary clients
D) All clients except Retail Clients
2. Which of the following accurately describes a key characteristic of mutual fund trusts?
A) They are restricted to investing in government bonds and cannot hold equity investments
B) They are subject to a flat tax rate, regardless of the income they generate
C) They issue shares that can be traded on the stock exchange, similar to stocks
D) They invest in a diversified portfolio of assets and pass on income to unitholders
3. Which of the following is an example of an instrument issued by the Canadian Securities Administrators (CSA)?
A) Universal Market Integrity Rules (UMIR)
B) Investment Dealer Partially Consolidated Rules (IDPC)
C) National Policy 11-202: Process for Prospectus Reviews
D) Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) guidelines
4. What is the purpose of an Investment Dealer obtaining the contact information of a trusted contact person?
A) To serve as a legal representative for the client
B) To bypass the client's decision-making authority in financial matters
C) To address potential concerns regarding financial exploitation of the client
D) To obtain investment advice from the trusted contact person
5. An Investment Representative (IR) is asked by a client for information about a service that the IR does not fully understand. What is the IR's ethical responsibility?
A) So as not to diminish investor confidence, explain the service in positive terms
B) In order not to be negligent, explain the service to the best of their ability
C) In putting the client first, the IR should state the service is not available
D) In the spirit of openness and fairness, ask a colleague better placed to explain
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |
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