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Canadian Investment Regulatory Exam — Information & Free Practice

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About Canadian Investment Regulatory Exam

Canadian Investment Regulatory Exam · CA

Key exam facts

Format
Proctored, remote or in person; multiple choice
Exam questions
Total questions: 110.
Time limit
2 hours

Topics covered

  • Overview of Canadian securities regulatory framework

    • Understand the role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators
    • Understand the role and authority of the Canadian Investment Regulatory Organization
    • Understand Investment Dealer registration and individual approval requirements and the role of CSA and CIRO
    • Understand the function and purpose of marketplaces in the investment industry
    • Remember the function and purpose of clearing agencies
    • Remember the function and purpose of the Canadian Investor Protection Fund
    • Remember the function and purpose of other investment industry regulators and agencies
    • Remember the purpose and implications of the Bank Act and Bankruptcy and Insolvency Act Part XII on financial services
    • Remember the purpose and implications of the criminal code and its application to financial crime
    • Understand the purpose and implications of the Proceeds of Crime (Money Laundering) and Terrorism Financing Act and Regulations
    • Remember the purpose and implications of other applicable laws

  • Prospective client relationships

    • Understand the client relationship model
    • Remember the CIRO rules and requirements for clients to qualify as an institutional client
    • Understand the difference between a retail client and an institutional client
    • Understand who is exempt under National Instrument 45-106
    • Understand the Investment Dealer onboarding process
    • Remember the retail client information that is to be collected
    • Understand how an Investment Dealer would identify and document the role of third parties and other professionals in the client's life
    • Understand the role of cost in product selection
    • Understand the potential impact of fees, turnover and taxes on the client's investment returns
    • Remember the required documents in the account agreement and Firm Welcome package
    • Understand the requirements for documenting, filing and maintaining client records

  • Scope of client relationships

    • Understand the role of the Registered Representative in providing client service
    • Understand the role of the Investment Representative in providing client service
    • Understand the concepts of trust, agency and fiduciary duty and when relevant
    • Understand the purpose and content of relationship disclosure
    • Remember typical services provided by retail Investment Dealers
    • Remember typical services provided by institutional Investment Dealers
    • Understand applicability of account appropriateness obligation
    • Understand applicability of product due diligence obligation
    • Understand applicability of know-your-product obligation
    • Understand the difference between account appropriateness and account suitability determination
    • Understand applicability of client suitability determination requirements for retail clients
    • Understand institutional client sophistication assessment and suitability exemptions
    • Remember exemptions from suitability determination requirements
    • Remember why internal escalation procedures to subject matter experts may be required
    • Remember systematic approaches to investment management and clients' investment strategies
    • Understand the use of relevant investment performance benchmarks
    • Remember procedures and requirements for working with clients residing in the United States and other foreign jurisdictions as applicable

  • Client complaint handling and reporting

    • Remember the role of CIRO and provincial regulators in the complaints handling framework
    • Understand recourse available to a dissatisfied client
    • Understand potential client issues that could lead to liability and consequences
    • Understand dealer obligations to report complaints and penalties for failure
    • Understand dealer obligations to clients, including legislative, contractual and other applicable laws
    • Remember regulatory requirements for dealer policies and procedures on client complaints
    • Understand prohibited practices for settlement agreements with clients

  • Market and company analysis

    • Remember basic economic theories
    • Understand factors that influence the macroeconomy
    • Remember sources of information and economic indicators
    • Remember how macroeconomic factors affect financial markets
    • Remember how to analyze industry performance
    • Remember tools used to analyze company performance and what they show
    • Understand the purpose and implications of rules relating to companies
    • Remember basic market theories in relation to stock market behaviour
    • Remember the purpose of tools, technical reports and other relevant sources in technical/statistical analysis

  • Market integrity, trade execution and settlement

    • Understand the Universal Market Integrity Rules
    • Understand UMIR gatekeeping obligations
    • Apply gatekeeping requirements to manipulative and deceptive practices, specific unacceptable activities and front running
    • Remember basic function and purpose of investment banking, research and corporate finance
    • Understand order entry, settlement and delivery processes
    • Understand features of different types of orders
    • Understand handling of order variations, cancellations and corrections
    • Understand dealer requirements to confirm orders with clients
    • Remember features of account types
    • Remember margin requirements
    • Remember need for specialized trading agreement for derivative accounts
    • Remember applicable reporting obligations to firms and regulators

  • Securities, managed products, mutual funds and other investments

    • Understand asset classes generally sold and traded at Investment Dealers
    • Understand types, features, risks and returns of equities
    • Understand main considerations affecting shareholders or potential shareholders
    • Understand types, features, risks and returns of fixed income securities and products
    • Understand main considerations affecting holders or potential holders of fixed income securities
    • Understand the purpose and uses of market indices
    • Understand types of pooled products
    • Understand features, risks and returns of managed products
    • Understand main considerations affecting investors or potential investors in managed products
    • Understand main considerations affecting investors or potential investors in mutual funds
    • Understand main considerations affecting investors or potential investors in exchange-traded funds
    • Remember types, features, risks, returns, advantages, disadvantages, costs and disclosure requirements of listed other investments

  • Derivatives

    • Remember main features of options contract types
    • Remember main features of other derivative contract types
    • Remember basic uses of derivatives
    • Remember basic transactional elements of futures and options
    • Remember differences between listed and over-the-counter derivative markets
    • Remember single and multi-legged strategies for trading futures, options and similar contracts
    • Remember administrative requirements of derivative trading with clients
    • Remember prohibited derivative trading practices

  • Conflicts of interest and ethics

    • Understand importance of Investment Dealers managing conflicts of interest
    • Understand the process of conflicts of interest management
    • Understand an Investment Dealer's ethical and legal responsibilities to clients
    • Understand importance of ethics and its relation to rules
    • Understand importance of ethical principles and standards of conduct for Approved Persons and Investment Dealers
    • Understand CIRO and other ethical standards of conduct
    • Understand types of inappropriate or prohibited personal financial dealings with clients
    • Remember requirements for employees and Approved Persons in positions of influence
    • Apply requirements governing an Approved Person's activities outside an Investment Dealer
    • Remember requirements for dealer policies and procedures maintaining client confidentiality
    • Understand purpose and methods of controlling information
    • Understand role of cybersecurity in containment of confidential information

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

Proctored, remote or in person; multiple choice

How many questions are on the exam?

Total questions: 110.

How long is the exam?

2 hours

Official sources and references

Confirm current exam arrangements with the exam provider.