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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| KYC and Suitability | 20–24% | - Suitability determination and documentation - Client information collection and updates |
| Equities | 18–22% | - Trading mechanics and market structure - Equity product features and risks |
| Mutual Funds and ETFs | 20–24% | - Fund structures and disclosure documents - Suitability and sales obligations |
| Structured Products | 10–14% | - Applicable regulatory rules - Product types and risk profiles |
| Client Monitoring and Relationship Management | 8–12% | - Complaint handling procedures - Performance reporting and CRM2 |
| Trade Execution and Market Integrity | 8–12% | - Prohibited practices and compliance - Order routing and best execution |
| Portfolio Construction and Managed Accounts | 10–14% | - Asset allocation and risk metrics - Registered account types |
| Fixed Income | 18–22% | - Bond characteristics and pricing - GICs and other retail fixed-income products |
CIRO Retail Securities Sample Questions:
1. A client wants to buy a recreational vehicle costing $25,000 in 3 years. They plan to make deposits of $630 at the start of each month into an investment account. What approximate annualised return is required to achieve their goal?
A) 10%
B) 8%
C) 4%
D) 6%
2. A new client of a Registered Representative (RR) has transferred their portfolio to the Investment Dealer to seek better recommendations. The RR notices that the client has naïvely diversified their portfolio rather than efficiently doing so. What does this mean?
A) The client set up an equally weighted portfolio but has not rebalanced it since construction
B) The client has lots of different assets but not considered the correlations between those assets
C) The client has different weightings in assets depending on returns rather than equal weighting
D) The client has chosen lots of diversified funds rather than focus on individual company shares
3. What is the primary purpose of an Investment Dealer's client welcome package?
A) To demonstrate client agreement to the Investment Dealer's standard terms and conditions before trading
B) To provide the necessary paperwork and policies so client can make informed decisions
C) To establish initial communication and set client expectations of the services and products provided
D) To document that all suitable investment products have been explained and recommended
4. If the beta of a company is 1.8, what can be said with certainty about its risk profile?
A) It has high systematic risk
B) It has high unsystematic risk
C) It has low systematic risk
D) It has low unsystematic risk
5. A company wants to raise capital but prefers to delay equity dilution while still attracting investors interested in potential ownership. Which type of bond is most suitable?
A) Convertible bonds
B) Callable bonds
C) Sinking fund bonds
D) Extendable bonds
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: A |

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