CIRO Institutional Securities Exam — Information & Free Practice

About CIRO Institutional Securities Exam

CIRO Institutional Securities Exam · CA

Key exam facts

Provider

The Canadian Investment Regulatory Organization (CIRO) offers the exam, developed with support from Fitch Learning. Fitch Learning delivers and supports CIRO exams, with Prometric providing test centres.

Format

Multiple choice

Exam questions

Total questions: 100.

Time limit

2.5 hours

Passing score

CIRO does not publish a single minimum passing grade: each examination form has its own passing grade. Results are reported as pass or fail.

Exam fee

CAD 475 for the first attempt in an enrolment period; CAD 300 for each second and third attempt within that period, which lasts at most 12 months. Applicable taxes are additional.

Topics covered

• Managing institutional client relationships (indicative questions: 16/100) (16%)

  • Understand key aspects of institutional marketplace structure
  • Understand the types of traders within the institutional market
  • Apply to specific situations the services provided to Institutional Clients by Investment Dealers
  • Apply key aspects of service to onboarding new clients
  • Understand all Institutional Client information required under know-your-client requirements and the processes around collection and verification
  • Apply to specific situations the role of the Investment Dealer in providing client services
  • Apply to specific situations the account appropriateness obligation and exceptions for certain types of Institutional Clients
  • Apply to specific situations key aspects of Institutional Client suitability determination requirements
  • Understand all the products used by Institutional Clients, including those held because of a transfer-in or client-directed trade
  • Apply the use of required documents and disclosures when servicing Institutional Clients to specific situations
  • Apply the importance of containment of confidential information to specific situations
  • Understand the importance of internal subject matter experts
  • Apply to specific situations the CIRO requirements when Investment Dealers communicate with clients and/or the public
  • Understand relevant laws and regulations in relation to Proceeds of Crime (Money Laundering) and Terrorist Financing legislation, exceptions, related rules and issues

• Conflicts of interest and standards of conduct (indicative questions: 8/100) (8%)

  • Apply CIRO standards of conduct involving a Registered Representative and their client or firm
  • Apply regulatory requirements for managing conflicts of interest in the best interests of the client
  • Apply regulatory requirements relating to outside activities
  • Apply regulatory requirements relating to personal financial dealings with Institutional Clients
  • Understand Investment Dealer policies and procedures for managing conflicts of interest
  • Apply regulatory requirements governing Institutional Client complaint handling

• Fixed income (indicative questions: 12/100) (12%)

  • Understand structure of Canadian fixed-income markets
  • Understand regulatory requirements for debt markets
  • Understand types and features of fixed-income products
  • Apply terminology of fixed-income products to specific situations
  • Analyze characteristics of fixed-income products
  • Understand product characteristics and conditions affecting risk–return profile
  • Apply standard calculations to bond yields
  • Apply relationships between coupon, yield, term, volatility, duration and economic factors
  • Apply modified duration calculations to assess bond price changes for yield changes
  • Apply time value of money to investment calculations

• Equities (indicative questions: 13/100) (13%)

  • Understand business structures and impact on investment opportunities
  • Understand prospectus requirements and exemptions under National Instruments 41–101 and 45–106
  • Understand types and key features of classes of common shares
  • Understand types and key features of Canadian depository receipts
  • Analyze characteristics of investing in common shares and depositary receipts
  • Analyze features of common share ownership
  • Understand corporate actions and other factors affecting the shareholder's position
  • Understand types and key features of classes of preferred shares
  • Analyze characteristics of investing in preferred shares
  • Apply the distinction between common and preferred share ownership
  • Apply time value of money to investment calculations

• Securities analysis and investment theory (indicative questions: 31/100) (31%)

  • Analyze factors involved in performing company investment analysis
  • Understand the purpose and content of a company's statement of financial position
  • Understand the purpose and content of statements disclosing company income
  • Understand the purpose and content of statements disclosing company cash flows
  • Understand other factors regarding company financial statements
  • Analyze basic financial statements to respond on the company, including calculations
  • Analyze basic financial statements to respond on the investment, including calculations
  • Understand the types and uses of equity and fixed-income information from issuers, exchanges and regulators
  • Understand the purpose and uses of market indices
  • Analyze information regarding financial markets
  • Analyze methods of assessing product and stock market behaviour
  • Understand industry sector classification and interpretation in stock valuation
  • Apply macroeconomic factors to investor expectations of securities prices and market movements
  • Understand the purpose of relevant sources of information on investment products
  • Understand the different types of risk
  • Understand what different risk measures indicate about an asset or portfolio
  • Apply risk management processes to risk and return
  • Apply theories of interest rate determination
  • Understand concepts of portfolio theories
  • Analyze purpose, advantages and disadvantages of asset pricing models
  • Analyze passive investment styles and strategies
  • Analyze active investment styles and strategies
  • Understand passive portfolio management techniques for equity managers
  • Understand passive and active fixed-income portfolio management techniques
  • Apply processes, laws and rules under National Instrument 62–104 for takeovers and issuer bids
  • Apply processes, laws and rules in relation to public company disclosure
  • Analyze the impact of relevant changes and updates

• Managed and other products (indicative questions: 8/100) (8%)

  • Understand types and key features of managed products
  • Understand structure and features of alternative investments
  • Understand structure and features of alternative strategy funds
  • Analyze characteristics of alternative and other types of investments
  • Analyze main features of exchange-traded funds
  • Apply factors used to decide between managed products and individual equity securities
  • Understand the role of derivatives markets within the securities market

• Execution and market integrity (indicative questions: 12/100) (12%)

  • Apply an understanding of the Universal Market Integrity Rules to specific situations
  • Apply regulatory requirements for UMIR gatekeeping responsibilities
  • Apply features of different types of orders
  • Apply aspects of the trade execution and settlement process
  • Understand the types of trading accounts
  • Apply requirements on managing client orders
  • Understand the nature of various trading desks
  • Analyze benefits and disadvantages of algorithmic trading

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

Official sources and references

• Institutional Securities Exam Guide for Studying

  page 4, How do I self-study?

• Institutional Securities Exam Syllabus

  page 4, Element 1

• Institutional Securities Exam Syllabus

  page 2, Exam parameters

• CIRO Proficiency Model: Publication of syllabus and other materials

  Development and use of the syllabus and practice examination

Confirm current exam arrangements with the exam provider.