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CIRO RSE Exam Overview:
| Certification Vendor: | CIRO (Canadian Investment Regulatory Organization) |
| Exam Name: | Retail Securities Exam |
| Exam Number: | RSE |
| Exam Duration: | 150–180 |
| Real Exam Qty: | 100–120 |
| Passing Score: | 60% |
| Certificate Validity Period: | Valid while registered; subject to continuing education requirements |
| Available Languages: | English, French |
| Exam Format: | Multiple-choice questions, Proctored online or on-site |
| Exam Price: | 475 CAD |
| Related Certifications: | Canadian Investment Regulatory Exam (CIRE) |
| Recommended Training: | Official RSE Syllabus and Study Guide |
| Exam Registration: | CIRO Exam Hub – Retail Securities Exam Prometric Scheduling |
| Sample Questions: | CIRO RSE Sample Questions |
| Exam Way: | Online remote proctoring or in-person at Prometric test centers |
| Pre Condition: | Must have passed the Canadian Investment Regulatory Exam (CIRE) |
| Official Syllabus URL: | https://www.ciro.ca/registered-individuals/proficiency/exam-hub/retail-securities-exam |
CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Mutual Funds and ETFs | 20–24% | - Fund structures and disclosure documents - Suitability and sales obligations |
| KYC and Suitability | 20–24% | - Client information collection and updates - Suitability determination and documentation |
| Portfolio Construction and Managed Accounts | 10–14% | - Registered account types - Asset allocation and risk metrics |
| Trade Execution and Market Integrity | 8–12% | - Prohibited practices and compliance - Order routing and best execution |
| Client Monitoring and Relationship Management | 8–12% | - Complaint handling procedures - Performance reporting and CRM2 |
| Fixed Income | 18–22% | - Bond characteristics and pricing - GICs and other retail fixed-income products |
| Structured Products | 10–14% | - Product types and risk profiles - Applicable regulatory rules |
| Equities | 18–22% | - Equity product features and risks - Trading mechanics and market structure |
CIRO Retail Securities Sample Questions:
1. A client asks a Registered Representative (RR) to invest the client's money in a private company in which the Representative has an ownership interest. What is the most appropriate action for the Representative to take?
A) Decline the transaction and close the client's account
B) Proceed with the investment with the client's written consent if the client is aware of the RR's ownership interest
C) Recommend the investment only if it aligns with the client's investment objectives and risk profile
D) Disclose the conflict and seek Investment Dealer approval before proceeding
2. A leveraged ETF seeks to provide twice the daily return of an equity index. The index rises and falls sharply over several trading days but finishes the period near its starting value. Which statement is most accurate?
A) The ETF must also finish near its starting value
B) The ETF must earn exactly twice the index's total multi-day return
C) The ETF eliminates market risk through leverage
D) Daily compounding may cause the ETF's multi-day return to differ substantially from twice the index return
3. 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) 5.50%
B) 9.25%
C) 5.95%
D) 6.49%
4. Which of the following best summarizes the disclosure requirements for a prospectus?
A) The company's marketing strategy and customer demographics
B) The company's potential returns for the investment
C) The company background, management, finances, risks and future plans
D) The company's business plan, 10-year financial projections and proprietary technology
5. An Investment Dealer executes a client's trade at a worse price than what was available on another exchange, despite having access to the better option. Which CIRO rule has been violated?
A) Front running
B) Wash trading
C) Best execution
D) Insider trading
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: C |
By Mark
