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CIRO Chief Compliance Officer Exam — Information & Free Practice

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About CIRO Chief Compliance Officer Exam

CIRO Chief Compliance Officer Exam · CA

Key exam facts

Exam questions
Total questions: 90.

Topics covered

  • General regulatory framework

    • Understand the role and authority of the CSA and provincial/territorial securities and derivatives regulators.
    • Understand the role and authority of CIRO.
    • Understand the role and authority of exchanges and other marketplaces.
    • Understand the role of the Canadian Investor Protection Fund (CIPF).
    • Understand the function and purpose of other financial regulators and agencies.
    • Understand the purpose of the following federal statutes.
    • Remember the purpose of the following federal statutes.

  • Compliance function and operations

    • Understand the requirement for an Investment Dealer to designate an appropriate CCO.
    • Understand the responsibilities under different CCO models.
    • Apply to specific situations the authority and responsibility of the CCO to oversee effectiveness and consistency of business units’ compliance practices.
    • Apply to specific situations how the compliance department interacts with other functions in the Investment Dealer.
    • Understand how the CCO needs to interact with external stakeholders.
    • Understand how different factors at the Investment Dealer will influence compliance program design.
    • Apply to specific situations relevant to a CCO prudent business practices.

  • Investment Dealer business model and related areas

    • Analyze the risks, opportunities and requirements associated with client types.
    • Analyze the risks, opportunities and requirements associated with business models.
    • Analyze the risks, opportunities and requirements associated with services.
    • Analyze the risks, opportunities and requirements associated with account types.
    • Analyze the risks, opportunities and requirements associated with basic types of securities.
    • Analyze the risks, opportunities and requirements associated with complex types of securities and products.
    • Analyze the risks, opportunities and requirements associated with types of derivatives.
    • Analyze the risks, opportunities and requirements associated with compensation structures.
    • Analyze the risks, opportunities and requirements associated with profitability measures.
    • Understand the requirements for development, evaluation and delivery of products and services.
    • Understand the product due diligence requirements and exemptions.
    • Understand the requirements for product due diligence policies and procedures.

  • Offering and distribution of securities

    • Understand prospectus requirements and provincial and territorial legislation relating to offering and distribution of securities.
    • Understand where information and filing relating to securities issuance can rely on selective disclosure.
    • Understand commonly used exemptions under National Instrument 45-106 Prospectus Exemptions.
    • Understand information and protections available to the investor in relation to issuance of securities.
    • Analyze the rights and obligations of the Investment Dealer when underwriting securities issuers.
    • Understand public company continuous disclosure requirements.
    • Understand requirements for public companies relating to statutory rights of shareholders.
    • Remember additional common and civil law liabilities that can apply to issuers.

  • Corporate governance and ethics

    • Analyze the components of effective corporate governance.
    • Understand the impact of a company setting its own corporate bylaws.
    • Remember the relevance and impact of environmental, social and governance considerations.
    • Analyze situations for Directors and Executives involving ethics and integrity in the securities industry.
    • Analyze situations for Directors and Executives involving ethics and integrity in corporate governance.
    • Analyze the consequences and risks of unethical behaviour.
    • Analyze the CIRO requirement relating to conflicts of interest.
    • Apply requirements relating to Directors’ and Executives’ outside activities.
    • Apply requirements relating to Directors’ and Executives’ personal financial dealings with clients.
    • Analyze policies and procedures to contain confidential and material non-public information.

  • Duties, liabilities and defences

    • Analyze factors relating to strategic company objectives and positions.
    • Analyze situations and obligations relating to a Director or Executive’s duties.
    • Analyze situations relating to legal obligations as corporate Directors or Executives as fiduciary.
    • Analyze situations and potential legal liabilities.
    • Remember securities-related criminal penalties.
    • Understand limitation of liability.
    • Understand legal defences available to officers and Directors in specific situations.

  • Risk management and internal controls

    • Understand the definition and objectives of risk management
    • Analyze risk management in a principles-based regulatory environment
    • Understand the regulatory expectations of risk management
    • Understand the definition and objectives of internal controls
    • Analyze an Investment Dealer’s use of risk management frameworks
    • Apply Director or Executive actions to ensure appropriate independent risk management
    • Understand the role of the auditor and auditor’s reports in internal controls
    • Analyze risk in growth, value creation and preservation of value
    • Understand reporting requirements for legal actions filed against the Investment Dealer
    • Analyze risk identification, measurement, monitoring, control and reporting considerations
    • Analyze the effectiveness of risk management tools
    • Understand requirements for credit risk management policies and procedures

  • Compliance as risk management

    • Understand the risk of sanctions, financial loss and reputational damage from regulatory violations
    • Understand the role of compliance as a risk management function
    • Apply controls to comply with requirements and manage risk in specified situations
    • Analyze red flags that compliance measures are inadequate in risk management
    • Apply the need to update policies and procedures when activities or requirements change
    • Understand the need to notify the regulator of material changes
    • Understand qualifications and registration requirements for Approved Person roles
    • Understand supervisory responsibilities of relevant employees and Approved Persons
    • Apply the CCO’s trade desk compliance obligations

  • Significant areas of risk

    • Understand the definition of significant areas of risk
    • Apply requirements relating to managing significant areas of risk
    • Analyze significant areas of risk specific to the Investment Dealer and its business lines
    • Analyze impact of significant risks on the Investment Dealer and ways to mitigate them

  • Regulatory reporting, examinations, investigations and actions

    • Apply regulatory reporting requirements to specific situations
    • Apply timely response requirements for market inquiries and consequences
    • Understand the process of compliance examinations
    • Understand controls, procedures and information reviewed in compliance examinations
    • Apply appropriate remediation to examination findings
    • Understand regulatory investigation and potential disciplinary actions following failures
    • Understand duties to communicate and cooperate with compliance investigations
    • Understand the hearing process
    • Understand disciplinary proceedings
    • Understand implications of enforcement action
    • Apply remediation of non-compliance identified through enforcement and the role of a Monitor
    • Understand opportunities to be heard before approval and compliance decisions

  • Compliance responsibilities

    • Understand policies and procedures for assessing dealer and individual compliance
    • Apply CCO compliance responsibilities
    • Analyze CCO actions to ensure appropriate policies and procedures
    • Understand and apply documented delegation controls
    • Understand correct Approved Person and registration categories
    • Apply approaches to internal disciplinary measures
    • Understand requirements relating to reportable matters
    • Understand reporting obligations
    • Analyze situations requiring internal investigations
    • Understand internal investigation requirements
    • Apply client complaint requirements
    • Understand designated complaints officer responsibilities
    • Apply options available to a client dissatisfied with the dealer response
    • Apply know-your-product requirements
    • Apply requirements and exemptions for KYC, appropriateness and suitability
    • Understand documentation for account openings, KYC, KYP, suitability and appropriateness
    • Understand documentation for communications, research and compliance activities
    • Apply CCO obligations to monitor and assess specified compliance areas

  • Chief Compliance Officer (CCO) responsibilities

    • Analyze situations involving CCO policy, monitoring and UDP reporting responsibilities
    • Understand policies and procedures to identify significant non-compliance
    • Apply red flags and non-compliance indicators requiring CCO action
    • Understand notification to regulators of dealer misconduct and related measures
    • Apply CCO requirements relating to dealer communications
    • Apply policies and procedures for compliance program review or self-assessment
    • Understand the role of the CCO on the managed account committee
    • Understand compliance training on key procedures and controls
    • Analyze CCO reporting to the board of directors
    • Apply CCO actions to red flags indicating inadequate reporting compliance measures

  • Ultimate Designated Person (UDP) responsibility

    • Analyze situations highlighting the UDP’s specific responsibilities
    • Analyze UDP monitoring and supervision responsibilities
    • Analyze the UDP role overseeing Executives managing significant risks
    • Apply the impact and risks of early warning rules
    • Understand UDP responsibility to address examination reports
    • Understand the purpose of annual risk questionnaires and risk trend reports

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

How many questions are on the exam?

Total questions: 90.

Official sources and references

Confirm current exam arrangements with the exam provider.