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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Overview of Regulatory Framework | ~10% | - Market Infrastructure and Protection Funds - Securities Legislation and Regulators (CSA, CIRO, FINTRAC) |
| Topic 2: Market Integrity, Trade Execution and Settlement | ~12% | - UMIR and Market Integrity Rules - Order Types, Execution and Settlement Processes |
| Topic 3: Market and Company Analysis | ~8% | - Investment Performance Benchmarks - Fundamental and Technical Analysis |
| Topic 4: Client Complaint Handling and Reporting | ~5% | - Escalation, Recordkeeping and Reporting - Complaint Management Framework |
| Topic 5: Scope of Client Relationship, KYC and Suitability | ~15–18% | - Suitability Assessment and Obligations - Know Your Client (KYC) Requirements |
| Topic 6: Securities and Managed Products | ~19% | - Fund Structures and Product Characteristics - Equities, Fixed-Income and Managed Products |
| Topic 7: Prospective Client Relationships | ~10% | - Know Your Prospect (KYP) and Disclosures - Relationship Discovery and Qualification |
| Topic 8: Conflicts of Interest and Ethics | ~14–15% | - Client-Focused Reforms and Ethical Standards - Conflict Identification, Disclosure and Management |
| Topic 9: Derivatives Fundamentals | ~5–8% | - Risk and Suitability for Derivatives - Options, Futures and Forwards Basics |
Question 1
Which of the following could be a market order?
A. Buy a security or derivative to be executed at a specified maximum price
B. Buy a security or a derivative to be executed upon entry to a marketplace at the best ask price
C. An order that includes a client order as well as a non-client order or principal order, or both
D. An order for the purchase or sale of a listed or a quoted security at the closing sale price
Question 2
An Investment Dealer supplies its clients with specific information about its client account reporting.
Which of the following is true regarding the provision of information about client reporting?
A. It is mandatory
B. It is useful
C. It is optional
D. It is recommended
Question 3
How does the Relative Strength Index (RSI) help investors assess market conditions?
A. It indicates whether a stock is overbought or oversold, signaling possible trend reversals
B. It analyzes the company's quarterly earnings to forecast future stock prices
C. It measures the volatility of a stock by comparing its high and low prices
D. It evaluates the price-to-earnings (P/E) ratio of a stock to determine its market value
Question 4
An investment analyst is explaining the characteristics of principal-protected notes (PPNs) to a client.
Which of the following is a key feature of a PPN?
A. It guarantees the return of the initial investment at maturity
B. It offers no protection against the principal investment
C. It involves a high level of risk, similar to equity investments
D. It provides guaranteed returns above the market average
Question 5
Which is the best definition of a Registered Representative (RR)?
A. An organization approved by CIRO authorized to trade or advise on securities, options and futures
B. An individual approved by CIRO authorized to trade or advise on securities, options and futures
C. An individual approved by the Canadian Investment Regulatory Organization (CIRO) authorized to trade or advise on securities, options and futures
D. An individual approved by CIRO to trade but not advise on securities, options and futures contracts
Solutions:
| Question 1 Answer: B | Question 2 Answer: A | Question 3 Answer: A | Question 4 Answer: A | Question 5 Answer: C |
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