Canadian Investment Regulatory Exam (CIRE) Syllabus January 2025

These flashcards cover the key regulatory bodies, client relationship models, product definitions, and ethical standards outlined in the CIRE Syllabus for January 2025.

Canadian Securities Administrators (CSA)

A forum for the provincial and territorial securities regulators in Canada to coordinate and harmonize regulation of the Canadian capital markets.

Canadian Investment Regulatory Organization (CIRO)

The national self-regulatory organization that oversees all investment dealers and mutual fund dealers and provides market integrity rules (UMIR) for Canadian marketplaces.

Indicative Question Weighting for 'Securities, managed products and mutual funds'

This element accounts for the highest weighting on the exam with $21$ indicative questions out of $110$.

Institutional Client (Financial Threshold)

A non-individual with total securities and precious metals bullion under administration or management exceeding $10$ million, or an individual exceeding that amount who requests and consents to such classification.

Accredited Investors

A category of investors who are exempt from certain prospectus requirements under National Instrument 45-106.

Registered Representative (RR)

An approved person allowed to provide investment recommendations, collect KYC information, and manage client portfolios.

Investment Representative (IR)

An approved person allowed to take and enter orders and respond to enquiries, but with a strict prohibition on providing investment recommendations.

Know-Your-Product (KYP)

The obligation for an Investment Dealer and Approved Person to understand the structure, features, risks, and costs of all investments purchased, sold, or recommended.

Relationship Disclosure Document

A disclosure provided to clients describing products, services, account types (such as fee-based, leverage, and margin), and how the Investment Dealer determines suitability.

Ombudsman for Banking Services and Investments (OBSI)

An independent recourse option available to dissatisfied clients for resolving disputes with their Investment Dealer outside of litigation or CIRO arbitration.

Universal Market Integrity Rules (UMIR)

A set of rules governing market integrity, including requirements for best execution and prohibitions against manipulative practices like front running.

Canadian Investor Protection Fund (CIPF)

An agency whose objective is to provide coverage for eligible claims in the event of an Investment Dealer’s bankruptcy or insolvency.

Proceeds of Crime (Money Laundering) and Terrorism Financing Act (PCMLTFA)

Federal legislation setting out requirements for anti-money laundering (AML) compliance programs, client due diligence, and record-keeping.

Personal Information Protection and Electronic Documents Act (PIPEDA)

Legislation governing how private-sector organizations collect, use, and disclose personal information in the course of commercial business.

Limit Order

An order type where the client specifies a maximum purchase price or a minimum sale price.

Market Order

An order to buy or sell a security immediately at the best available current price.

Margin Requirements

The regulatory standards that dictate the minimum amount of equity a client must maintain in an account when using borrowed funds to purchase securities.

STRIPs (Separate Trading of Registered Interest and Principal Securities)

A fixed-income product created by separating the interest coupons from the principal of a bond, allowing each to be sold as a zero-coupon security.

Exchange-Traded Funds (ETFs)

Managed products that trade on an exchange like a stock, often tracking an index, and providing disclosure through the ETF Facts document.

Puts and Calls

The two primary types of options contracts; calls grant the right to buy, and puts grant the right to sell the underlying asset.

Information Barriers (Firewalls)

Policies and physical/electronic measures used by Investment Dealers to control the flow of confidential information and manage conflicts of interest.