CIRO Supervisor Exam — Information & Free Practice

About CIRO Supervisor Exam

CIRO Supervisor Exam · CA

Key exam facts

Format

Proctored multiple choice

Exam questions

Total questions: 90.

Time limit

3 hours

Topics covered

• General regulatory framework

  • Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators
  • Role and authority of CIRO
  • Investment Dealer registration and individual approval requirements and roles of CSA and CIRO
  • Role and authority of exchanges and other marketplaces
  • Role and authority of clearing agencies
  • Role of the Canadian Investor Protection Fund
  • Function and purpose of other financial regulators and agencies
  • Purpose and implications of specified federal statutes
  • Criminal Code and financial crimes
  • Proceeds of Crime (Money Laundering) and Terrorism Financing Act and Regulations
  • Purpose and implications of other applicable laws
  • Investment Dealer obligations to clients and others
  • Apply client complaint requirements to situations relevant to Supervisors
  • Recourse available to dissatisfied clients
  • Situations that may require CIRO whistleblower service for non-client account matters
  • Consequences and liabilities of settlement agreements with clients without Investment Dealer approval
  • Analyze the role of ethics and personal integrity in the securities industry
  • Analyze the role of ethics and integrity in corporate governance
  • Consequences and risks of unethical behaviour
  • Apply CIRO requirements relating to conflicts of interest
  • Analyze prohibition, approval, disclosure and action requirements regarding outside activities and positions of influence
  • Apply prohibitions and exemptions regarding personal financial dealings with clients
  • Containment of confidential or material non-public information

• Supervisory structure: Investment Dealer responsibilities

  • Investment Dealer supervisory system requirements
  • Product due diligence obligations and exemptions
  • Executive responsibilities in oversight of Investment Dealer activities
  • Executive responsibility for significant areas of risk
  • Implications of internal and external audits on the Investment Dealer
  • Common areas of CIRO regulatory action against Approved Persons
  • Role of the compliance department
  • Scope of supervision requirements and Supervisor authority
  • Supervisory record-keeping requirements and retention periods
  • Documented controls for delegation
  • Role of automation in supervision
  • Investment Dealer controls, policies and procedures for automation

• Specific supervision responsibilities in relation to the Investment Dealer business and operations

  • Supervisory system relevant to scope and complexity of the business
  • Relationship between the supervisory system and internal controls
  • Risks, opportunities and requirements for Investment Dealer business models
  • Supervisory risks associated with client types
  • Supervisory risks associated with retail and institutional accounts
  • Supervisory risks associated with basic securities
  • Supervisory risks associated with complex securities and products
  • Supervisory risks associated with derivatives
  • Supervisory risks associated with compensation structures
  • Supervisory risks associated with negotiated flat fees and referral fees

• Specific supervision responsibilities in relation to account approvals

  • Account approval requirements
  • Account approval considerations for institutional clients
  • Account appropriateness requirements
  • Client account records requirements
  • Purpose and content of Relationship Disclosure
  • Leverage risk disclosure statement
  • Purpose and content of margin account agreement
  • Derivatives trading agreement disclosures in relation to the Investment Dealer
  • Derivatives trading agreement disclosures in relation to the client
  • Other matters required by a derivatives trading, clearing or issuing entity
  • Client cumulative loss limits
  • Letter of Undertaking as an alternative to trading agreement for institutional clients
  • Requirements for supervision of managed accounts
  • Purpose and content of managed account agreement
  • Apply managed account conflicts of interest rules
  • Fees and remuneration rules and prohibitions on certain fees and compensation
  • Prohibition on designated Supervisor delegation of discretionary account reviews
  • Requirements for supervision of discretionary accounts
  • Purpose, content, disclosures, rights and obligations of discretionary account agreement
  • Apply account appropriateness assessment to specified account types
  • Apply account appropriateness assessment to OEO accounts

• Specific supervision responsibilities in relation to account activity

  • Approaches to supervision
  • Apply account supervision requirements
  • Enhanced supervisory measures for Approved Persons with regulatory infractions or questionable conduct
  • Order entry and absence of intermediation risks for OEO accounts
  • Requirements and conditions for temporary holds to prevent financial exploitation of vulnerable clients
  • Analyze retail account supervision
  • Cross supervision requirements
  • Retail client hold mail account procedures
  • Policies and procedures for institutional account supervision and detecting suspicious activity
  • Direct market access account and supervision requirements for institutional clients
  • OEO account services exemptions and requirements
  • Handling derivatives accounts and continuous supervision
  • Detecting specified risks in retail derivatives accounts
  • Apply derivatives policies and procedures
  • Apply supervision policies and procedures for persons handling managed accounts
  • Documentation and assessment of clients and activities

• Specific supervision responsibilities in relation to activities of Approved Persons

  • Supervisor responsibilities for permitted and prohibited activities of Approved Persons
  • Supervisory responsibilities relating to account opening
  • Supervisory responsibility for retail and institutional suitability determinations
  • Supervisory responsibilities relating to account activity
  • Product due diligence and know-your-client obligations
  • Supervisory role in Approved Persons educating clients
  • Ensuring supervised Approved Persons have necessary qualifications
  • Ensuring client information, disclosures and agreements are sent and acknowledged where relevant

• Specific supervision responsibilities in relation to trading and market rules

  • Market rules including UMIR
  • Apply regulatory standards for review, acceptance and approval of orders
  • Investment Dealer trading supervisory system obligations
  • Regular review of compliance with marketplace trading provisions
  • Risk-based supervision system
  • Apply gatekeeping responsibilities and regulatory requirements

• Specific supervision responsibilities in relation to advertisements, sales literature and communications and research

  • Review and supervision of advertisements, sales literature and client correspondence
  • Apply designated Supervisor preapproval requirements
  • Apply research report disclosure requirements
  • Analyze supervision of conduct in producing research reports

• Specific supervision responsibilities in relation to risks associated with Investment Dealer activity and registered locations

  • Business location supervision guidelines
  • Risk factors and potential impact of different business locations
  • Apply supervisory requirements to retail distribution risks

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

• Supervisor Exam Guide for Studying

  page 4, How do I self-study?

• Supervisor Exam Syllabus

  page 3, Syllabus key

• Supervisor Exam Syllabus

  page 2, Exam parameters

• Exam Enrolment and Attempts Policy

  page 3, Exam Results

• Supervisor Exam Syllabus

  page 2, Exam parameters, question format

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