Institutional Securities Exam

Blueprint

Element-by-element breakdown

Parsed directly from the official CIRO syllabus. Every learning outcome maps to a specific element and weighted question count.

1. Element 1

   Free

   Managing institutional client relationships

   16%

   Element 1 requires an in-depth application of the processes around servicing Institutional Clients. Candidates can expect to be tested on institutional marketplace structure, servicing Institutional Clients, the documentation and disclosures required and the role of subject matter experts.

   • 1.1key aspects of institutional marketplace structure.
   • 1.10the use of required documents and disclosures when servicing Institutional Clients to specific situations.
   • 1.11the importance of containment of confidential information to specific situations.
   • 1.12the importance of internal subject matter experts.
   • 1.13to specific situations the CIRO requirements when Investment Dealers communicate with clients and/or the public.
   • 1.14relevant laws and regulations in relation to Proceeds of Crime (Money Laundering) and Terrorist Financing legislation, exceptions, related rules and issues.
   • + 8 more outcomes

   14 outcomes · 278 practice Q

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2. Element 2

   Conflicts of interest and standards of conduct

   8%

   The ability to act ethically and professionally in servicing Institutional Clients is fundamental to any candidate’s role. This element requires candidates to understand the content and application of the CIRO standards of conduct to servicing Institutional Clients, applying these in the context of managing conflicts of interest, outside activities and personal financial dealings with Institutional Clients.

   • 2.1to specific situations CIRO standards of conduct involving a Registered Representative and their client or a Registered Representative and their firm.
   • 2.2to specific situations the regulatory requirements governing the management of conflicts of interest in the best interests of the client.
   • 2.3to specific situations the regulatory requirements relating to outside activities.
   • 2.4to specific situations the regulatory requirements relating to personal financial dealings with Institutional Clients. Consider prohibition and action relating to:
   • 2.5the application of the Investment Dealer’s policies and procedures relating to the management of conflicts of interest.
   • 2.6the regulatory requirements governing Institutional Client complaint handling to specific situations.

   6 outcomes · 113 practice Q

3. Element 3

   Fixed income

   12%

   Element 3 requires the candidate to analyze the features of fixed-income securities issued by governments, corporations and other bodies. Candidates will need to analyze how these features provide different risks and potential rewards to the holders and issuers of these securities. This element also requires an ability to calculate the price and yields of fixed-income securities, as well as apply the factors that can change these.

   • 3.1structure of the Canadian fixed-income markets.
   • 3.10time value of money to investment calculations.
   • 3.2regulatory requirements for debt markets.
   • 3.3the types and features of fixed-income products.
   • 3.4terminology of fixed-income products to specific situations.
   • 3.5characteristics of fixed-income products.
   • + 4 more outcomes

   10 outcomes · 177 practice Q

4. Element 4

   Equities

   13%

   Element 4 requires the candidate to analyze the features of equity securities issued by corporations. Candidates will need to analyze how these features provide different risks and potential rewards to the holders and issuers of these securities.

   • 4.1different types of business structures and the impact on investment opportunities.
   • 4.10the distinction between common share and preferred share ownership to specific situations.
   • 4.11time value of money to investment calculations.
   • 4.2the requirement for and purpose of a prospectus under National Instrument 41–101 General Prospectus Requirements and when this requirement may not apply under National Instrument 45–106 Prospectus Exemptions.
   • 4.3the types and key features of different classes of common shares.
   • 4.4the types and key features of Canadian depository receipts (CDRs).
   • + 5 more outcomes

   11 outcomes · 241 practice Q

5. Element 5

   Securities analysis and investment theory

   31%

   Element 5 tests the information that is available about companies and the economy and how this information can be used to assess the value of an investment. Candidates may be required to calculate various accounting ratios and interpret the results.

   • 5.1the factors involved in performing company analysis to determine whether a company represents a good investment.
   • 5.10information regarding financial markets.
   • 5.11methods of assessing product and stock market behaviour.
   • 5.12how industries can be classified into sectors and how these classifications are interpreted in a company’s stock valuation.
   • 5.13macroeconomic factors to investor expectations of the price of securities and market movements.
   • 5.14the purpose of all relevant sources of information on investment products.
   • + 21 more outcomes

   27 outcomes · 435 practice Q

6. Element 6

   Managed and other products

   8%

   Candidates will be required to analyze managed and other products and how they compare to direct investments. General fund management approaches will be tested alongside the information that needs to be provided to investors. Questions will expect candidates to analyze the differences between the various types of managed and other products, from income trusts to private equity funds and determine the relative advantages and disadvantages of these products.

   • 6.1types and key features of managed products.
   • 6.2the structure and features of alternative investments.
   • 6.3the structure and features of alternative strategy funds.
   • 6.4the characteristics of alternative and other types of investments.
   • 6.5the main features of ETFs.
   • 6.6the factors used to decide between managed products and individual equity securities, including investor’s decisions.
   • + 1 more outcomes

   7 outcomes · 133 practice Q

7. Element 7

   Execution and market integrity

   12%

   In Element 7, candidates are expected to apply the requirements under the Universal Market Integrity Rules (UMIR) regarding the recognition of abusive trading and the gatekeeping responsibilities of Investment Dealers and their Representatives. The application of the types of orders that can be placed and the process of execution will also be tested in the exam, together with an analysis of algorithmic trading.

   • 7.1an understanding of the UMIR to specific situations.
   • 7.2to specific situations the regulatory requirements in relation to UMIR gatekeeping responsibilities.
   • 7.3the features of different types of orders.
   • 7.4various aspects of the trade execution and settlement process.
   • 7.5the types of trading accounts.
   • 7.6to specific situations the requirements on managing client orders.
   • + 2 more outcomes

   8 outcomes · 156 practice Q