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: Overview of Canadian securities regulatory framework | 10% | - Criminal Code and its application to financial crime - Function and purpose of other investment industry regulators and agencies - Other applicable laws including confidentiality, privacy, anti-spam, company disclosure and shareholder rights - Function and purpose of investment industry marketplaces - Anti-money laundering and anti-terrorist financing legislation and regulations - Function and purpose of the Canadian Investor Protection Fund - Role and authority of the Canadian Investment Regulatory Organization - Investment Dealer registration and individual approval requirements - Role and authority of the Canadian Securities Administrators and provincial and territorial securities and derivatives regulators - Purpose and implications of the Bank Act and Bankruptcy and Insolvency Act - Function and purpose of clearing agencies |
| Topic 2: Scope of client relationships | 15% | - Suitability determination requirements for retail clients - Role of the Registered Representative in providing client service - Know-your-product obligations - Institutional client sophistication assessment and suitability exemptions - Typical services provided by institutional Investment Dealers - Account appropriateness versus suitability determination - Role of the Investment Representative in providing client service - Requirements for working with clients in the United States and other foreign jurisdictions - Typical services provided by retail Investment Dealers - Systematic approaches to investment management and investment strategies - Trust, agency and fiduciary duty - Investment performance benchmarks - Purpose and content of relationship disclosure - Internal escalation procedures and subject matter experts - Exemptions from suitability determination requirements - Product due diligence obligations - Account appropriateness obligations |
| Topic 3: Conflicts of interest and ethics | 15% | - Role of cybersecurity in protecting confidential information - Ethical and legal responsibilities to clients - Ethical principles and standards of conduct for Approved Persons and Investment Dealers - Importance of managing conflicts of interest - Client confidentiality policies and procedures - CIRO and other ethical standards of conduct - Conflicts of interest management process - Information controls, barriers, firewalls and restricted lists - Inappropriate or prohibited personal financial dealings with clients - Activities outside an Investment Dealer - Requirements regarding positions of influence - Importance of ethics and its relationship to rules |
| Topic 4: Securities, managed products, mutual funds and other investments | 19% | - Purpose and uses of market indices - Considerations affecting equity investors and potential shareholders - Features, risks and returns of managed products - Considerations affecting managed product investors - Types of pooled products - Types, features, risks and returns of equities - Considerations affecting mutual fund investors - Considerations affecting fixed income investors - Other investments including hedge funds, structured products, alternative investment funds, crypto assets and ESG-related products - Considerations affecting exchange-traded fund investors - Asset classes generally sold and traded at an Investment Dealer - Types, features, risks and returns of fixed income securities and products |
| Topic 5: Market and company analysis | 8% | - Effects of macroeconomic factors on financial markets - Company performance analysis tools - Industry performance analysis - Basic market theories and stock market behaviour - Technical and statistical analysis tools and information sources - Rules relating to companies - Economic indicators and sources of information - Factors influencing the macroeconomy - Basic economic theories |
| Topic 6: Prospective client relationships | 10% | - Impact of fees, turnover and taxes on investment returns - Retail client information collection - Exemptions under National Instrument 45-106 - Role of cost in product selection - Required account agreement and Firm Welcome package documents - Client relationship model - Third parties and other professionals in the client's life - Institutional client qualification requirements - Differences between retail and institutional clients - Investment Dealer onboarding process - Client record documentation, filing and maintenance |
| Topic 7: Client complaint handling and reporting | 5% | - Role of CIRO and provincial regulators in the complaints handling framework - Potential client issues, liability and consequences - Policies and procedures for reporting, handling and maintaining complaint records - Recourse available to dissatisfied clients - Prohibited practices in client settlement agreements - Investment Dealer obligations to clients - Investment Dealer complaint reporting obligations and penalties |
| Topic 8: Derivatives | 5% | - Basic uses of derivatives - Single and multi-legged derivative trading strategies - Features of options contract types - Listed versus over-the-counter derivative markets - Administrative requirements for derivative trading with clients - Basic transactional elements of futures and options - Prohibited derivative trading practices - Features of other derivative contract types |
| Topic 9: Market integrity, trade execution and settlement | 12% | - Gatekeeping requirements for manipulative and deceptive practices, unacceptable activities and front running - Features of different order types - Reporting obligations to firms and regulators - Order entry, trade management, settlement and delivery - Order variations, cancellations and corrections - Universal Market Integrity Rules - UMIR gatekeeping obligations - Order confirmation requirements - Features of different account types - Specialized trading agreements for derivative accounts - Functions of investment banking, research and corporate finance - Margin requirements |
1. A trader expects the price of a stock to rise and wants to use a bullish strategy in options trading.
Which of the following strategies should the trader use?
A) Selling a put option
B) Buying a call option
C) Buying a put option
D) Selling a call option
2. An investment analyst is explaining the characteristics of principal-protected notes (PPNs) to a client.
Which of the following is a key feature of a PPN?
A) It involves a high level of risk, similar to equity investments
B) It provides guaranteed returns above the market average
C) It guarantees the return of the initial investment at maturity
D) It offers no protection against the principal investment
3. Which of the following best describes the key difference between a call option and a put option in an options contract?
A) A call option lets the holder sell, and a put option lets the holder buy, an asset at a set price
B) A call option allows the holder to buy, while a put option allows the holder to sell, at a fixed price
C) A call option buys at a fixed price; a put option gives the holder rights to future dividends
D) A call option gives the holder the right to sell an asset; a put option allows buying at market price
4. What is the most likely consequence if an Investment Dealer breaches CIRO rules?
A) Client accounts being frozen
B) External monitor appointed to oversee
C) Inability to onboard institutional investors
D) Increased risk of regulatory penalties
5. 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 client receiving a final response
B) 180 days from the date the complaint was made
C) 180 days from the date of the firm's initial response
D) 180 days from the date that CIRO was notified
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: A |
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