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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Equities | 18–22% | - Equity product features and risks - Trading mechanics and market structure |
| Fixed Income | 18–22% | - GICs and other retail fixed-income products - Bond characteristics and pricing |
| KYC and Suitability | 20–24% | - Client information collection and updates - Suitability determination and documentation |
| Structured Products | 10–14% | - Applicable regulatory rules - Product types and risk profiles |
| Client Monitoring and Relationship Management | 8–12% | - Performance reporting and CRM2 - Complaint handling procedures |
| Portfolio Construction and Managed Accounts | 10–14% | - Registered account types - Asset allocation and risk metrics |
| Mutual Funds and ETFs | 20–24% | - Fund structures and disclosure documents - Suitability and sales obligations |
| Trade Execution and Market Integrity | 8–12% | - Order routing and best execution - Prohibited practices and compliance |
CIRO Retail Securities Sample Questions:
1. An investor insists on excluding companies with low diversity and inclusion scores from their portfolio. The Registered Representative (RR) identifies that this restriction significantly reduces the number of available investments in the investor's preferred sector. What is the most appropriate action?
A) Exclude the restriction but compensate by increasing exposure to other sectors
B) Override the restriction to ensure adequate diversification and risk management
C) Respect the restriction and construct a portfolio with reduced diversification
D) Recommend the investor abandon the restriction to access a broader range of investments
2. Why are information barriers important in Investment Dealer operations?
A) They reduce operational complexity by preventing departments from coordinating too closely on client service strategies
B) They allow the Investment Dealer to maintain competitive advantages by keeping trading strategies confidential
C) They prevent confidential information from being accessed by employees without a legitimate business need
D) They help limit communication so that only Executives have access to key information for decision- making efficiency
3. Which factor must be considered in an account appropriateness assessment?
A) The client's needs aligned with services and account types
B) The client's preferred investment regions
C) The client's age and marital status
D) The client's choice of online trading platforms
4. A client invests $20,000 today in an account earning an annual compound return of 5%. Approximately how much will the investment be worth after six years, assuming no additional deposits or withdrawals?
A) $26,802
B) $28,000
C) $24,000
D) $30,402
5. A client sold a portfolio of stocks and realized a capital gain of $10,000 and a capital loss of $4,000. Under the Canadian capital gains tax system, what is the net taxable amount from these transactions?
A) $3,000
B) $5,000
C) $10,000
D) $6,000
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: A |







