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CIRO RSE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Securities AnalysisApproximately 11.7%- Technical analysis
- Fundamental analysis
- Financial statement interpretation
Topic 2: Execution and Market IntegrityApproximately 5.8%- Market integrity rules
- Order handling
- Best execution
Topic 3: EquitiesApproximately 10%- Valuation concepts
- Common and preferred shares
- Equity markets
Topic 4: Portfolio ConstructionApproximately 10.8%- Asset allocation
- Diversification
- Portfolio risk management
Topic 5: Fixed IncomeApproximately 8.3%- Government and corporate bonds
- Interest rate risk
- Yield and pricing
- Credit risk
Topic 6: Investment RecommendationsApproximately 11.7%- Recommendation development
- Client communication
- Product selection
Topic 7: Know-Your-Client (KYC) and SuitabilityApproximately 22.5%- Suitability assessment
- Investment objectives and risk tolerance
- Client profile collection and maintenance
- Know-Your-Product (KYP)
- Regulatory obligations
Topic 8: Monitoring, Reporting and Maintaining Client RelationshipsApproximately 5.8%- Account monitoring
- Ongoing suitability review
- Performance reporting
- Client relationship management
Topic 9: Managed Products and Other InvestmentsApproximately 13.3%- Structured products
- Mutual funds
- Alternative investments
- Exchange-traded funds (ETFs)

CIRO Retail Securities Sample Questions:

1. A client owns a stock currently trading at $55 and wants the shares sold if the price declines to $50. Once the trigger price is reached, execution is more important than obtaining a specific minimum price. Which order is most appropriate?

A) Buy limit order
B) Sell on-stop order
C) Sell limit order
D) Fill-or-kill order


2. A bond has a face value of $1,000, an annual coupon rate of 5.5% and a current market price of $925. What is the bond's current yield?

A) 9.25%
B) 5.95%
C) 5.50%
D) 6.49%


3. An investor, a retiree seeking steady income and global diversification through managed products, is wary of transparency issues and unexpected losses. Which of the following statements best captures a key advantage and a key disadvantage of managed products for achieving these goals?

A) Reduces loss potential but restricts geographic exposure
B) Delivers consistent income but may obscure holdings details
C) Enhances diversification while limiting income flexibility
D) Provides global reach yet risks losses from currency fluctuations


4. A client is comfortable accepting substantial market volatility and describes their risk tolerance as high.
However, the client plans to use most of the invested funds for a home purchase in 18 months and would be unable to replace a significant loss. Which risk profile should the Registered Representative (RR) use when determining suitability?

A) Medium, representing the average of risk tolerance and risk capacity
B) High, because the client has expressly accepted substantial volatility
C) Low, because the client's risk capacity is lower than their risk tolerance
D) High, provided the recommended investment has sufficient expected return


5. An investor is evaluating how high inflation impacts securities prices and market movements. Which of the following outcomes is most consistent with the effects of high inflation on the economy and investor expectations?

A) Stock prices rise significantly, because companies can increase prices without losing customers
B) The purchasing power of money declines, reducing consumer spending and potentially lowering corporate earnings
C) Bond prices increase sharply, because investors favor fixed-income securities during inflationary periods
D) Productivity surges, leading to higher employment and economic growth despite inflationary pressures


Solutions:

Question # 1
Answer: B
Question # 2
Answer: B
Question # 3
Answer: D
Question # 4
Answer: C
Question # 5
Answer: B

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