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CIRO Director and Executive Exam — Information & Free Practice

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About CIRO Director and Executive Exam

CIRO Director and Executive Exam · CA

Key exam facts

Format
Proctored multiple choice
Exam questions
Total questions: 75.
Time limit
2.5 hours

Topics covered

  • General regulatory framework (9.33%)

    • Role and authority of the CSA and provincial/territorial securities and derivatives regulators
    • Role and authority of CIRO
    • Role and authority of exchanges and other marketplaces
    • Role of the Canadian Investor Protection Fund
    • Function and purpose of other financial regulators and agencies
    • Purpose of specified federal statutes
    • Purpose of specified federal statutes

  • Investment Dealer business models and related areas (12%)

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

  • Offering and distribution of securities (9.33%)

    • Understand prospectus and securities distribution requirements
    • Understand selective disclosure in securities issuance
    • Understand commonly used prospectus exemptions
    • Understand investor information and protections in securities issuance
    • Analyze investment dealer rights and obligations in underwriting securities issuers
    • Understand public company continuous disclosure requirements
    • Understand public company requirements relating to statutory shareholder rights
    • Remember additional common and civil law liabilities applicable to issuers

  • Corporate governance and ethics (16%)

    • Analyze components of effective corporate governance
    • Understand the impact of company bylaws
    • Remember the relevance and impact of environmental, social and governance considerations
    • Analyze ethics and integrity in the securities industry for directors and executives
    • Analyze ethics and integrity in corporate governance for directors and executives
    • Analyze consequences and risks of unethical behaviour
    • Analyze CIRO requirements relating to conflicts of interest
    • Apply outside activities requirements to directors and executives
    • Apply personal financial dealing with clients requirements to directors and executives
    • Analyze policies and procedures for containment of confidential and material non-public information

  • Duties, liabilities and defences (10.67%)

    • Analyze factors relating to strategic company objectives and positions
    • Analyze situations and obligations relating to directors' or executives' duties
    • Analyze fiduciary legal obligations of corporate directors or executives
    • 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 (16%)

    • Understand the definition and objectives of risk management
    • Analyze risk management in a principles-based regulatory environment
    • Understand regulatory expectations of risk management
    • Understand definition and objectives of internal controls
    • Analyze an investment dealer's use of risk management frameworks
    • Apply actions required for independent risk management from a director or executive perspective
    • Understand the auditor's role and reports in internal controls
    • Analyze risk in growth and value creation and risk management in preservation of value
    • Understand reporting requirements for legal actions filed against the dealer
    • Analyze risk identification, measurement, monitoring, control and reporting
    • Analyze effectiveness of risk management tools
    • Understand credit risk management policy and procedure requirements

  • Significant areas of risk (13.33%)

    • Understand the definition of significant areas of risk
    • Apply requirements for managing significant areas of risk to specific scenarios
    • Analyze significant risk areas specific to the investment dealer and business lines
    • Analyze the impact of significant areas of risk and ways to mitigate them

  • Ultimate Designated Person (UDP) responsibilities (13.33%)

    • Analyze situations highlighting specific UDP responsibilities
    • Analyze situations highlighting UDP monitoring and supervision responsibilities
    • Analyze the UDP role in oversight of executives managing significant areas of risk
    • Apply impact and risks of early warning rules to specific situations
    • Understand UDP responsibility to address issues raised by 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

What is the exam format?

Proctored multiple choice

How many questions are on the exam?

Total questions: 75.

How long is the exam?

2.5 hours

Official sources and references

Confirm current exam arrangements with the exam provider.