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RSE practice questions: KYC and suitability
Ten RSE practice questions on KYC and suitability. NI 31-103 §13.2 enumerates the mandatory KYC fields. CIRO Rule 3402 codifies the account-as-a-whole standard. Most retail-suitability fail patterns trace to one of these: confusing risk tolerance with risk capacity, applying transaction-level rather than account-level suitability, missing a KYC refresh trigger.
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FAQ
Is the RSE harder than the CIRE on suitability?
Comparable. The CIRE tests suitability theory; the RSE tests retail application. RSE scenarios skew younger, smaller-portfolio, and more focused on KYC trigger events. If you scored 70+ on CIRE Element 3, you are well prepared.
What's a KYC trigger event under NI 31-103 §13.2?
Any material change in the client's circumstances: income, dependants, objectives, time horizon, marriage, divorce, retirement, inheritance, or a change in the firm's risk-rating of held products.
When does the leverage pre-trade disclosure (§13.13) apply?
Whenever the client is using borrowed funds to purchase securities. Required in writing, before the trade, and includes risk of margin call, magnified losses, and interest cost.
What concentration thresholds matter on the RSE?
Firm policy specific. Most firms flag >10% in a single security and require additional review at >20%. CIRO Rule 3402 requires the assessment to be at the account level.
Can I get the full RSE question bank?
Yes. Ciroexam ships 1,000+ RSE practice questions across all elements. $29.99/month or $249/year covers all 9 CIRO Proficiency Model exams.