CIRE Final Cleanup

The last 48 hours before your CIRE attempt at Fitch Learning. Drill these corrections, sleep, write. Each block targets the high-yield gotchas candidates report missing most in post-exam reviews. No new content. No new chapters. Lock in what you already know.

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Regulatory Framework

CIRO formed Jan 1, 2023 from the merger of IIROC and the MFDA. CIRO is the SRO; provincial commissions remain the statutory regulators.
CIPF coverage = $1M per general account category, per member. CDIC = $100K per depositor, per category, per insured institution. Same institution, different branch = NOT separate CDIC coverage.
OBSI compensation recommendation cap = $500,000. OBSI is not binding on the firm but reputational pressure is real.
NI 31-103 governs registration categories. CIRO Rule 1400-series covers proficiency. CIRO Rule 3100 = standards of conduct.

Client Account Management

CIRO Rule 3401 = KYC obligation. KYC must be refreshed at least every 36 months even with no client interaction.
Modernized suitability obligation includes a duty to consider lower-cost alternatives. This is new vs IIROC-era rules.
CIRO Rule 3600 = complaint handling. Initial acknowledgment timeline + substantive response cycle are testable. OBSI escalation triggers when the firm declines.
CIRO Rule 3700 = trade confirmations. Content + delivery timing are prescriptive. Client statement delivery is separately prescribed.

Fixed-Income Gotchas

Bond prices and yields move in OPPOSITE directions. If rates rise, prices fall. If rates fall, prices rise.
YTM uses years REMAINING to maturity, not the original term. Recompute as time passes.
Bond sale proceeds = sale price + accrued interest. Accrued interest runs from the last coupon date to settlement.
Long bonds and low-coupon bonds are MORE price-volatile. Duration is the rough multiplier.
Government of Canada T-bills settle SAME DAY. All other Canadian securities settle T+1.
Semi-annual bond math: divide annual rate by 2, double the number of periods.

Equity & Margin Edge Cases

Long margin tiers: $2.00+ = 50%, $1.75–1.99 = 60%, $1.50–1.74 = 80%, under $1.50 = 100%.
Short-sale margin: $0.25–1.49 = 100% of market value. Under $0.25 = $0.25 per share. SHORT sales must be DECLARED at the time of the trade.
If a long margin position gains value, required margin falls and excess margin appears (can be withdrawn or used).
GTC orders on TSX expire after 90 calendar days unless cancelled. Day orders expire end of trading day.
"Buy at $4.85 or less" = limit BUY order. No time specified = default DAY order.
Ex-dividend date = record date (post-2024 change). Last cum-dividend day = business day before record date.

Derivatives Quick Hits

1 stock option contract = 100 shares. Total premium = premium × 100 × contracts.
Call breakeven = strike + premium. Put breakeven = strike − premium.
Covered call = own the shares + write a call. Generates income, caps upside, downside still exists.
Protective put = own the shares + buy a put. Downside insurance on a long position.
Naked call = unlimited loss potential. Cash-secured put = obligation to buy at the strike if assigned.
Exchange-traded derivatives = standardized + clearinghouse-backed + easier to offset. OTC = customized + counterparty (default) risk.
Need protection for more than 9 months = buy a LEAP put (long-term option).
Need to buy later and worried prices rise = buy futures NOW to lock the price.

Disclosure & Prospectus

Preliminary prospectus (red herring) = pre-receipt document. Cannot complete sales yet, but can solicit expressions of interest.
Final prospectus delivery deadline = MIDNIGHT of the second business day after the purchase and sale agreement.
Right of withdrawal window = 2 business days after receipt (or deemed receipt) of the prospectus.
Material fact = a fact that could significantly affect the market price or value of the security.
Fund Facts (mutual funds, NI 81-101 Part 3A) and ETF Facts (NI 41-101 Part 3B) delivery timing are testable.
Greenshoe / over-allotment option max = 15% of the original offering.

Corporate & Insider Thresholds

Private corporation max = 50 shareholders. Public corporation can offer shares to the public.
Significant influence = ≥ 20% but < 50%. Control of a subsidiary = >50%. Cost method = <20%.
Early-warning disclosure threshold = 10% of voting rights. Press release required immediately.
Takeover bid / control-position threshold = >20% of voting rights.
Insider reporting threshold = >10% of voting rights. Insiders must report when they become insiders and when they trade.
TSX annual statements within 90 days. TSXV within 120 days. TSX quarterly within 45 days. TSXV quarterly within 60 days.

Economy & Monetary Policy

Bank of Canada inflation target band = 1% to 3%. Operating band = 25 basis points wide.
Bank of Canada acts as fiscal AGENT for the federal government (manages funds, issues banknotes).
Monetary policy fully affects inflation in more than 18 months. Hyperinflation = >50% per month.
Repo = BoC INJECTS cash, rates go DOWN. Reverse repo = BoC DRAINS cash, rates go UP.
Drawdown = cash MOVES FROM chartered banks to BoC; rates rise. Redeposit = cash moves FROM BoC to chartered banks; rates fall.
Coincident indicators up + leading indicators down = expansion now, recession risk ahead.

Final Memory Hooks

Registrant Prep · CIRE 2026

→Bond rates up = prices DOWN
→YTM uses years REMAINING
→T-bills SAME-DAY · all else T+1
→Option contract = 100 shares
→Call BE = strike + premium
→Same INSTITUTION ≠ same branch (CDIC)
→Ex-div = record date (post-2024)
→Greenshoe = 15%
→Early warning = 10%
→Final prospectus = midnight 2nd biz day

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