CIRO CIRE : Canadian Investment Regulatory Exam

  • Exam Code: CIRE
  • Exam Name: Canadian Investment Regulatory Exam
  • Updated: Aug 27, 2026
  • Q & A: 112 Questions and Answers

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CIRO CIRE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Scope of client relationships15%- Client suitability determination
- Registered Representative role and client service
- Account appropriateness
- Account appropriateness versus suitability
- Product due diligence
- Institutional client sophistication and suitability exemptions
- Institutional Investment Dealer services
- Investment performance benchmarks
- Retail Investment Dealer services
- Clients residing in the United States and other foreign jurisdictions
- Know-your-product requirements
- Investment Representative role and client service
- Investment management styles and strategies
- Relationship disclosure
- Trust, agency and fiduciary duty
- Suitability exemptions
- Escalation to subject matter experts
Topic 2: Client complaint handling and reporting5%- Investment Dealer complaint reporting obligations
- Settlement agreements with clients
- Client recourse options
- CIRO and provincial regulator roles in complaint handling
- Investment Dealer obligations to clients
- Complaint policies, procedures and recordkeeping
- Client issues and potential liability
Topic 3: Prospective client relationships10%- Client relationship model
- Client recordkeeping
- Investment Dealer onboarding process
- Costs, fees, turnover and taxes
- Accredited investors and exemptions
- Third parties and professional advisers
- Retail client information and risk profile
- Account agreements and welcome documentation
- Institutional client qualification
- Retail and institutional clients
Topic 4: Overview of Canadian securities regulatory framework10%- Investment Dealer registration and individual approval requirements
- Confidentiality, privacy, anti-spam and shareholder rights legislation
- Marketplaces and trading venues
- Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators
- Other investment industry regulators and agencies
- Criminal Code and financial crime
- Canadian Investor Protection Fund
- Clearing agencies
- Bank Act and Bankruptcy and Insolvency Act
- Anti-money laundering requirements
- Role and authority of the Canadian Investment Regulatory Organization
Topic 5: Conflicts of interest and ethics15%- Ethics and regulatory rules
- Outside activities of Approved Persons
- Information barriers and restricted lists
- Client confidentiality
- Ethical principles and standards of conduct
- Personal financial dealings with clients
- CIRO and other ethical standards
- Conflict identification, avoidance, addressing and disclosure
- Cybersecurity and confidential information
- Positions of influence
- Managing conflicts of interest
- Ethical and legal responsibilities to clients
Topic 6: Market and company analysis8%- Company regulation, disclosure and investor rights
- Macroeconomic factors and policies
- Economic information and indicators
- Industry performance analysis
- Basic economic theories
- Market theories and stock market behaviour
- Company performance analysis
- Technical and statistical analysis tools
- Macroeconomic effects on financial markets
Topic 7: Derivatives5%- Uses of derivatives
- Derivative trading strategies
- Derivative account administration
- Listed and over-the-counter derivatives markets
- Futures, forwards, swaps and contracts for difference
- Transactional elements of futures and options
- Prohibited derivative trading practices
- Options
Topic 8: Securities, managed products, mutual funds and other investments19%- Fixed income investment considerations
- Pooled products
- Other investments
- Equity investment considerations
- Fixed income securities and products
- Asset classes
- Equities
- Market indices
- Exchange-traded funds
- Mutual funds
- Managed products
- Managed product investment considerations
Topic 9: Market integrity, trade execution and settlement12%- Universal Market Integrity Rules
- Order confirmation requirements
- UMIR gatekeeping obligations
- Investment banking, research and corporate finance
- Gatekeeping for manipulative and deceptive practices
- Order types
- Margin requirements
- Order entry, trade processing, settlement and delivery
- Derivative trading agreements
- Reporting obligations
- Account types
- Order variations, cancellations and corrections

CIRO Canadian Investment Regulatory Sample Questions:

1. An investment advisor for a discretionary account purchased a stock then realized it was not aligned with the client's know-your-client (KYC) documentation. The stock is sold for a small gain. What should the advisor do?

A) Reinvest the proceeds in a stock that does align to offset the issue
B) Conceal the error to avoid any reputational damage
C) The incident is reasonable practice with no further action needed
D) Notify the client and document the error as per firm policy


2. Which of the following is a key requirement of the client relationship model under the Investment Dealer and Partially Consolidated rules?

A) Providing disclosure of all material conflicts of interest to clients
B) Prioritizing client decisions above the representative's advice
C) Highlighting the client feedback on past client relationships
D) Offering always available client service for administrative queries


3. Once the know-your-client (KYC) information has been collected what should an Investment Dealer do with that information?

A) Ensure the information is accurate and complete through its own verification
B) Require the client to sign a certification that the KYC information is complete and true
C) Take reasonable steps to have the client confirm the accuracy of the information
D) Review the information and then destroy it to comply with data retention rules


4. A shareholder in Canada receives a dividend payment from a Canadian corporation. Which of the following best describes how dividends are typically received in Canada?

A) Dividends are automatically reinvested unless the shareholder opts out
B) Dividends are declared and distributed after shareholders submit a claim of dividend
C) Dividends are paid in a combination of stock and cash, where shareholders decide case by case
D) Dividends are paid directly to the shareholder's bank or brokerage account


5. An investment firm has a differential commission structure which rewards particular types of accounts.
What must an advisor do when recommending new accounts to clients?

A) Avoid recommending the accounts that reward higher commissions to prevent conflicts of interest
B) Automatically recommend the account type with the lowest fees to avoid any perceived bias
C) Recommend the account type that offers the advisor the highest commission to maximize personal earnings
D) Disclose the differential commission structure and ensure that the recommendation is in the client's best interest


Solutions:

Question # 1
Answer: D
Question # 2
Answer: A
Question # 3
Answer: C
Question # 4
Answer: D
Question # 5
Answer: D

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