CIRO CIRE Exam : Canadian Investment Regulatory Exam
- Exam Code: CIRE
- Exam Name: Canadian Investment Regulatory Exam
- Updated: Aug 26, 2026
- Q & A: 112 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Conflicts of Interest and Ethics | ~14–15% | - Client-Focused Reforms and Ethical Standards - Conflict Identification, Disclosure and Management |
| Topic 2: Market and Company Analysis | ~8% | - Fundamental and Technical Analysis - Investment Performance Benchmarks |
| Topic 3: Prospective Client Relationships | ~10% | - Relationship Discovery and Qualification - Know Your Prospect (KYP) and Disclosures |
| Topic 4: Derivatives Fundamentals | ~5–8% | - Options, Futures and Forwards Basics - Risk and Suitability for Derivatives |
| Topic 5: Scope of Client Relationship, KYC and Suitability | ~15–18% | - Know Your Client (KYC) Requirements - Suitability Assessment and Obligations |
| Topic 6: Client Complaint Handling and Reporting | ~5% | - Complaint Management Framework - Escalation, Recordkeeping and Reporting |
| Topic 7: Market Integrity, Trade Execution and Settlement | ~12% | - UMIR and Market Integrity Rules - Order Types, Execution and Settlement Processes |
| Topic 8: Overview of Regulatory Framework | ~10% | - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) - Market Infrastructure and Protection Funds |
| Topic 9: Securities and Managed Products | ~19% | - Equities, Fixed-Income and Managed Products - Fund Structures and Product Characteristics |
1. Which of the following could be a market order?
A) An order for the purchase or sale of a listed or a quoted security at the closing sale price
B) Buy a security or derivative to be executed at a specified maximum price
C) An order that includes a client order as well as a non-client order or principal order, or both
D) Buy a security or a derivative to be executed upon entry to a marketplace at the best ask price
2. In a competitive market, when the quantity demanded equals the quantity supplied, what is the result for the price of the good or service?
A) The price will fluctuate unpredictably based on market sentiment
B) The price will decrease due to excess demand
C) The price will increase due to excess supply
D) The price will remain stable at the equilibrium point
3. An investor is considering mutual funds but has concerns about potential drawbacks. What is one significant disadvantage of investing in mutual funds?
A) High diversification in the portfolio
B) Professional management of the fund
C) Liquidity allowing easy buying and selling
D) Fees and expenses reducing overall returns
4. Which of the following implications arises from the application of the Criminal Code to financial crimes?
A) Canadian Investor Protection Fund (CIPF) must reimburse all clients affected by fraudulent activities committed by Investment Dealers
B) Financial institutions are required to implement mandatory risk assessments for client portfolios
C) Investment Dealers must develop anti-fraud policies to prevent criminal activities
D) Securities markets must be supervised by a federal agency to avoid fraudulent activities
5. A central bank raises interest rates to address rising inflation. What is the most likely effect of this policy on the economy?
A) Higher demand for goods and services
B) Reduced consumer spending and lower inflation
C) Increased consumer spending and higher inflation
D) Increased borrowing by businesses and individuals
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: B |
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