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 |
|---|---|---|
| Client complaint handling and reporting | 5% | - Investment Dealer obligations to clients - Client issues and potential liability - CIRO and provincial regulator roles in complaint handling - Settlement agreements with clients - Client recourse options - Investment Dealer complaint reporting obligations - Complaint policies, procedures and recordkeeping |
| Securities, managed products, mutual funds and other investments | 19% | - Pooled products - Exchange-traded funds - Market indices - Mutual funds - Managed products - Equity investment considerations - Fixed income investment considerations - Equities - Fixed income securities and products - Managed product investment considerations - Other investments - Asset classes |
| Market integrity, trade execution and settlement | 12% | - Order types - Order variations, cancellations and corrections - Derivative trading agreements - Order confirmation requirements - Gatekeeping for manipulative and deceptive practices - UMIR gatekeeping obligations - Margin requirements - Universal Market Integrity Rules - Account types - Order entry, trade processing, settlement and delivery - Reporting obligations - Investment banking, research and corporate finance |
| Overview of Canadian securities regulatory framework | 10% | - Role and authority of the Canadian Investment Regulatory Organization - Investment Dealer registration and individual approval requirements - Criminal Code and financial crime - Canadian Investor Protection Fund - Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators - Other investment industry regulators and agencies - Marketplaces and trading venues - Clearing agencies - Confidentiality, privacy, anti-spam and shareholder rights legislation - Anti-money laundering requirements - Bank Act and Bankruptcy and Insolvency Act |
| Market and company analysis | 8% | - Market theories and stock market behaviour - Macroeconomic factors and policies - Technical and statistical analysis tools - Macroeconomic effects on financial markets - Company performance analysis - Industry performance analysis - Company regulation, disclosure and investor rights - Basic economic theories - Economic information and indicators |
| Derivatives | 5% | - Listed and over-the-counter derivatives markets - Derivative trading strategies - Prohibited derivative trading practices - Options - Uses of derivatives - Futures, forwards, swaps and contracts for difference - Derivative account administration - Transactional elements of futures and options |
| Scope of client relationships | 15% | - Retail Investment Dealer services - Institutional client sophistication and suitability exemptions - Investment performance benchmarks - Account appropriateness versus suitability - Institutional Investment Dealer services - Relationship disclosure - Client suitability determination - Suitability exemptions - Account appropriateness - Know-your-product requirements - Trust, agency and fiduciary duty - Registered Representative role and client service - Clients residing in the United States and other foreign jurisdictions - Investment management styles and strategies - Escalation to subject matter experts - Product due diligence - Investment Representative role and client service |
| Conflicts of interest and ethics | 15% | - Ethical principles and standards of conduct - Information barriers and restricted lists - CIRO and other ethical standards - Managing conflicts of interest - Cybersecurity and confidential information - Outside activities of Approved Persons - Ethical and legal responsibilities to clients - Positions of influence - Personal financial dealings with clients - Ethics and regulatory rules - Client confidentiality - Conflict identification, avoidance, addressing and disclosure |
| Prospective client relationships | 10% | - Account agreements and welcome documentation - Third parties and professional advisers - Client relationship model - Client recordkeeping - Investment Dealer onboarding process - Retail client information and risk profile - Costs, fees, turnover and taxes - Retail and institutional clients - Institutional client qualification - Accredited investors and exemptions |
1. 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 buys at a fixed price; a put option gives the holder rights to future dividends
C) A call option gives the holder the right to sell an asset; a put option allows buying at market price
D) A call option allows the holder to buy, while a put option allows the holder to sell, at a fixed price
2. A compliance officer at an Investment Dealer notices a significant increase in trades of low-liquidity stocks. What is the most likely compliance issue?
A) Inaccurate records of the trades executed
B) Failure to file taxes on the proceeds from the trades
C) Potential market manipulation or insider trading
D) Insufficient diversification in the client's portfolio
3. 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) Buying a call option
B) Selling a call option
C) Buying a put option
D) Selling a put option
4. A central bank raises interest rates to address rising inflation. What is the most likely effect of this policy on the economy?
A) Increased consumer spending and higher inflation
B) Increased borrowing by businesses and individuals
C) Higher demand for goods and services
D) Reduced consumer spending and lower inflation
5. Following two recent annual reviews it was determined that a client's commission-based account is appropriately balanced. The advisor recommends trades that are unnecessary to fulfil the client's investment goals, and describes the key features of the product including the costs. Which of the following is true?
A) This is not a violation because the advisor disclosed all the costs
B) This is not a violation because the account was appropriately balanced
C) This is a potential breach of the advisor's fiduciary duty
D) This is a potential failure of the duty of best execution
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: C |
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