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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Execution and Market Integrity | Approximately 5.8% | - Best execution - Market integrity rules - Order handling |
| Topic 2: Portfolio Construction | Approximately 10.8% | - Portfolio risk management - Asset allocation - Diversification |
| Topic 3: Managed Products and Other Investments | Approximately 13.3% | - Exchange-traded funds (ETFs) - Mutual funds - Structured products - Alternative investments |
| Topic 4: Securities Analysis | Approximately 11.7% | - Financial statement interpretation - Technical analysis - Fundamental analysis |
| Topic 5: Investment Recommendations | Approximately 11.7% | - Recommendation development - Product selection - Client communication |
| Topic 6: Equities | Approximately 10% | - Valuation concepts - Common and preferred shares - Equity markets |
| Topic 7: Know-Your-Client (KYC) and Suitability | Approximately 22.5% | - Regulatory obligations - Investment objectives and risk tolerance - Know-Your-Product (KYP) - Suitability assessment - Client profile collection and maintenance |
| Topic 8: Fixed Income | Approximately 8.3% | - Credit risk - Yield and pricing - Interest rate risk - Government and corporate bonds |
| Topic 9: Monitoring, Reporting and Maintaining Client Relationships | Approximately 5.8% | - Ongoing suitability review - Client relationship management - Performance reporting - Account monitoring |
CIRO Retail Securities Sample Questions:
1. An investor holds a bond portfolio consisting of long-term and short-term bonds. The long-term bonds have an average modified duration of 10 years, while the short-term bonds have an average modified duration of 3 years. If interest rates increase by 1%, what is the likely impact on the portfolio's value?
A) The portfolio's value will decrease, but the impact will be greater for long-term bonds
B) The portfolio's value will decrease, but short-term bonds will offset the losses from long-term bonds
C) The portfolio's value will remain unchanged, because interest rate changes do not affect bond prices
D) The portfolio's value will increase significantly due to the long-term bonds' higher yields
2. An Investment Dealer notices a pattern of unsuitable unsolicited trades in an investor's account. What action should the Investment Dealer take?
A) Require the investor to undergo additional suitability assessments before placing future trades
B) Flag the account for monitoring but take no immediate action unless a complaint arises
C) Review the Registered Representative's (RR's) documentation and consider intervention if the pattern continues
D) Cancel past transactions and restrict future trades if the pattern continues
3. A company reports net income available to common shareholders of $1,200,000 and declares common dividends of $360,000. What is the dividend payout ratio?
A) 40%
B) 30%
C) 20%
D) 70%
4. What is the primary responsibility of an Investment Dealer when considering whether to allow a client to trade on margin?
A) To ensure that the client is aware of the risks and benefits associated with trading on margin
B) To certify that the client has sufficient funds to cover any potential losses from trading on margin
C) To limit the client's trading activity to avoid unnecessary risk associated with trading on margin
D) To provide margin loans at the Investment Dealer's lowest interest rates to capitalize on the leverage
5. A mutual fund has total assets of $84 million, liabilities of $9 million and 3 million units outstanding. What is the fund's net asset value per unit?
A) $31
B) $28
C) $22
D) $25
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: D |




