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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Structured Products | 10–14% | - Applicable regulatory rules - Product types and risk profiles |
| Topic 2: Fixed Income | 18–22% | - GICs and other retail fixed-income products - Bond characteristics and pricing |
| Topic 3: Portfolio Construction and Managed Accounts | 10–14% | - Asset allocation and risk metrics - Registered account types |
| Topic 4: Equities | 18–22% | - Equity product features and risks - Trading mechanics and market structure |
| Topic 5: Trade Execution and Market Integrity | 8–12% | - Order routing and best execution - Prohibited practices and compliance |
| Topic 6: Client Monitoring and Relationship Management | 8–12% | - Complaint handling procedures - Performance reporting and CRM2 |
| Topic 7: Mutual Funds and ETFs | 20–24% | - Suitability and sales obligations - Fund structures and disclosure documents |
| Topic 8: KYC and Suitability | 20–24% | - Client information collection and updates - Suitability determination and documentation |
CIRO Retail Securities Sample Questions:
1. An investor purchased 800 shares of a company at $15 per share in 2015, with a commission fee of 2% of the total purchase price. In 2019, they sold all 800 shares at $17 per share, incurring a flat commission fee of $40.
What is the investor's taxable capital gain, assuming a 50% inclusion rate?
A) $660
B) $800
C) $560
D) $720
2. A retail client is 25-year-old with a stable income, a high risk profile and has a good understanding of the securities and the securities market. They wish to open an account that allows them to take responsibility for their own investment decisions and allow them to seek growth opportunities in the securities markets. Under account appropriateness rules, which seems most appropriate?
A) A balanced mutual fund account composed of a mix of equities and bonds
B) Direct electronic access (DEA) account
C) Order execution only (OEO) account
D) An aggressive growth mutual fund to maximize potential returns
3. An institutional-sized client order contains 100,000 shares, but the client wants only 5,000 shares displayed publicly at any time to reduce the order's visible market impact. Which order type is most appropriate?
A) Iceberg order
B) Fill-or-kill order
C) Sell on-stop order
D) Market-on-open order
4. Which of the following best summarizes the disclosure requirements for a prospectus?
A) The company's business plan, 10-year financial projections and proprietary technology
B) The company background, management, finances, risks and future plans
C) The company's marketing strategy and customer demographics
D) The company's potential returns for the investment
5. What is a principal purpose of the Black-Litterman model in portfolio construction?
A) To calculate a bond's current yield from its coupon and price
B) To replace diversification with concentrated stock selection
C) To combine market-implied equilibrium returns with the manager's investment views
D) To guarantee that a portfolio will outperform its benchmark
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: C |



