CIRE Cheat Sheet (CIRO) — Rules, Workflows, Formulas

Use this as your “what do I do next?” playbook. Pair it with the Syllabus for coverage and Practice for speed.

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CIRE in 60 seconds (what the exam rewards)

• Process > trivia: pick the safest compliant next step, not the cleverest fact.
• Classify first: CSA/provincial vs CIRO issue, and role boundaries (who can recommend vs who can execute).
• KYC + KYP + suitability: constraints drive product fit; revisit on triggers.
• Stop → escalate → document beats improvisation on complaints, trade errors, AML/MNPI, and market integrity red flags.

    flowchart TD
	  A["Scenario"] --> B["Classify: securities-law (CSA) vs dealer conduct/market integrity (CIRO)"]
	  B --> C["Confirm authority + role boundaries (rep vs IR)"]
	  C --> D["Get facts: KYC + constraints + what is missing"]
	  D --> E["KYP + appropriateness / suitability (as required)"]
	  E --> F{"Red flag? complaint / MNPI / AML / conflict / trade error"}
	  F -->|Yes| G["Stop, escalate, preserve records, follow policy"]
	  F -->|No| H["Proceed with compliant action"]
	  G --> I["Document + retain an audit trail"]
	  H --> I
	  I --> J["Monitor + update on triggers"]

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Official topic weights (use for time allocation)

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1) Regulatory map (CSA vs CIRO) (10%)

Fast classification

Where the “parts” sit (high level)

    flowchart LR
	  subgraph LAW["Securities law (CSA / provincial regulators)"]
	    CSA["CSA + Provincial/Territorial<br/>Securities Regulators"]
	    NI["National/Multilateral Instruments<br/>Policies + Staff Notices (conceptual)"]
	  end
	
	  subgraph CIRO["CIRO"]
	    IDPC["IDPC Rules<br/>(dealer/Approved Person conduct)"]
	    UMIR["UMIR<br/>(market integrity)"]
	  end
	
	  subgraph MARKET["Market Infrastructure"]
	    VENUE["Marketplaces<br/>(Exchanges, ATS, CTPs, FORM)"]
	    CLEAR["Clearing agencies<br/>(CDS, CDCC)"]
	    CIPF["CIPF<br/>(dealer insolvency protection, not market losses)"]
	  end
	
	  CLIENT["Client"] --> DEALER["Investment dealer / Approved Person"]
	  DEALER --> VENUE --> CLEAR
	  CSA --> NI
	  CSA --> DEALER
	  CIRO --> DEALER
	  CIRO --> VENUE
	  DEALER --- CIPF

Other high-yield bodies (recognize the names)

• Bank of Canada: monetary policy, rates, and liquidity (macro impacts).
• OSFI: prudential oversight (banks/insurers) at a high level.
• FINTRAC: AML/ATF framework (policies, client due diligence, monitoring).
• OBSI: dispute resolution option for clients (when applicable).
• Privacy commissioners / PIPEDA: confidentiality and client information handling.

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2) Prospective client relationships (CRM) (10%)

Client Relationship Model (CRM) skeleton

Think of CRM as “set expectations → control conflicts → prove suitability → report clearly”.

    flowchart TD
	  P["Prospect / first contact"] --> D["Relationship disclosure<br/>(services, limits, fees, conflicts approach)"]
	  D --> K["Collect KYC<br/>(objectives, horizon, risk tolerance/capacity, liquidity, knowledge)"]
	  K --> C["Classify client<br/>(retail vs institutional; waivers/exemptions if applicable)"]
	  C --> O["Open account + approvals<br/>(recordkeeping + audit trail)"]
	  O --> S["Suitability / appropriateness<br/>(and re-assess on triggers)"]
	  S --> R["Reporting<br/>(holdings, performance, key communications)"]

KYC checklist (retail, exam-friendly)

• Identity + authority: who can instruct? POA? trusted contact? corporate signing authority?
• Objectives/needs: growth/income/preservation (make it specific).
• Risk profile: distinguish risk tolerance vs risk capacity.
• Time horizon: when money is needed.
• Liquidity constraints: known withdrawals, emergencies.
• Knowledge/experience: complexity the client can reasonably understand.
• Cost sensitivity: fees, turnover, and taxes can change outcomes.
• Documentation: capture facts, disclosures delivered, and why decisions were made.

Client categories (high level)

• Retail vs institutional classification can change what’s required, but it does not remove the need to act fairly, keep records, and escalate when unsure.
• If a scenario involves exemptions/waivers (e.g., permitted client waivers, accredited investor concepts), the safe move is usually: confirm eligibility → deliver required disclosure → document → escalate if unclear.

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3) Scope of client relationships (15%)

Role boundaries (don’t get trapped)

Service models (know the “duty level”)

Appropriateness vs suitability (simple)

• Appropriateness: is the account type/service/product category even reasonable for this client? (high level)
• Suitability: is this recommendation/transaction right for this client now, given KYC and constraints?

KYP mini-checklist (fast due diligence framing)

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4) Complaints (timelines + recordkeeping) (5%)

Safe workflow (what to do)

    flowchart TD
	  A["Complaint received"] --> B["Log + preserve records<br/>(create complaint file)"]
	  B --> C["Acknowledge<br/>(typically within 5 business days)"]
	  C --> D["Classify<br/>(service issue vs misconduct allegation vs trade error)"]
	  D --> E["Escalate + investigate<br/>(per firm policy)"]
	  E --> F["Substantive response<br/>(typically within 90 calendar days)"]
	  F --> G["Remediate / settle<br/>(approved + documented)"]
	  G --> H["Retain complaint file<br/>(typically 7 years)"]

What NOT to do (easy points)

• Don’t promise outcomes or compensation.
• Don’t “handle it privately”.
• Don’t destroy/alter records.
• Don’t use settlement terms to discourage regulator reporting (escalate).

Client recourse (high level)

Clients may have recourse paths such as OBSI, arbitration, or litigation (context-dependent). Your safest answer is almost always to follow policy, document, and provide accurate process information (not legal advice).

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5) Market and company analysis (8%) — the minimum math you need

Macro → markets (concept map)

    flowchart LR
	  POLICY["Policy<br/>(rates, inflation, fiscal/monetary)"] --> YC["Yield curve + discount rates"]
	  YC --> BONDS["Bond yields/prices"]
	  YC --> EQ["Equity valuation multiples<br/>(P/E, discounting)"]
	  POLICY --> FX["FX + capital flows"]
	  FX --> EQ
	  BONDS --> EQ

Core return formulas (use test-friendly versions)

Simple total return

$$ R = \frac{(P_1 - P_0) + I}{P_0} $$

• $P_0$ = starting price, $P_1$ = ending price, $I$ = income (dividends/interest).

Dividend yield (equity)

$$ \text{Dividend Yield} = \frac{\text{Annual Dividends}}{\text{Price}} $$

Real rate (rule of thumb)

$$ \text{Real} \approx \text{Nominal} - \text{Inflation} $$

Basic company ratios (know what they imply)

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6) Market integrity, trade execution and settlement (12%)

UMIR mindset (high level)

• Market integrity rules aim for fair and orderly markets.
• “Best answer” often includes: best execution mindset + supervision + documentation + escalation.

Trade lifecycle (mental model)

    sequenceDiagram
	  participant Client as "Client"
	  participant Dealer as "Dealer/Rep"
	  participant Venue as "Marketplace/Venue"
	  participant Clear as "Clearing (CDS/CDCC)"
	  participant Settle as "Settlement/Custody"
	  Client->>Dealer: Place order / instructions
	  Dealer->>Venue: Route order
	  Venue-->>Dealer: Execution report (fill)
	  Dealer-->>Client: Confirmation (fees/commissions)
	  Dealer->>Clear: Clear and net obligations
	  Clear->>Settle: Settlement processing
	  Settle-->>Client: Position/cash updated (statements/reporting)

Order types (recognize the “constraint”)

Gatekeeping & escalation (the safest reflex)

If you see suspicious activity (client pattern mismatch, MNPI cues, manipulation cues):

Stop → escalate → preserve records (and do not tip off).

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7) Products (19%) — product-fit cues

Product picker (high level)

Fixed income: minimum formulas

Current yield

$$ \text{Current Yield} = \frac{\text{Annual Coupon}}{\text{Price}} $$

Duration intuition (price/yield inverse, approximation)

$$ \frac{\Delta P}{P} \approx -D \cdot \Delta y $$

• $D$ = duration (approx), $\Delta y$ = yield change (in decimal).

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8) Derivatives (5%) — payoff intuition

Types + why they exist

• Forwards/futures: lock in a price; hedge or speculate.
• Options: define asymmetric payoff; hedge downside or express a view with defined risk.

Core option payoffs

Call payoff

$$ \max(S-K, 0) $$

Put payoff

$$ \max(K-S, 0) $$

Breakeven (long options, simple)

$$ \text{Call BE} = K + \text{premium} \qquad \text{Put BE} = K - \text{premium} $$

Exam cue: if the stem implies a hedge need, the best answer usually prefers the simplest instrument that addresses the dominant risk, with clear disclosure and appropriate approvals.

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9) Conflicts & ethics (16%) — the decision tree

Conflicts management workflow

    flowchart TD
	  A["Potential conflict identified"] --> B["Name it (what is the incentive / pressure?)"]
	  B --> C{"Can it be avoided or removed?"}
	  C -->|Yes| D["Avoid/remove + document"]
	  C -->|No| E["Mitigate (controls/supervision)"]
	  E --> F["Disclose in plain language"]
	  F --> G["Client-first decision + approvals as required"]
	  G --> H["Document + monitor"]
	  D --> H

Ethics “best answer” process

1. Clarify facts and what is missing.
2. Identify stakeholders and duties.
3. Check rules/policy and conflicts.
4. Choose the most defensible client-first action.
5. Document the rationale and escalation.

Confidentiality + cybersecurity (fast checklist)

• Least privilege access; don’t share client data casually.
• Watch for phishing/social engineering; escalate suspected incidents.
• Use information controls (restricted/grey lists, barriers) when applicable.
• If it’s sensitive and you’re unsure: pause → escalate → document.

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High-yield glossary (quick)

• CSA: Canadian Securities Administrators (provincial/territorial coordination)
• CIRO: dealer conduct + market integrity oversight
• IDPC / UMIR: CIRO rule frameworks (dealer conduct vs market integrity)
• CIPF: protection in a dealer insolvency (not protection from market losses)
• OBSI: dispute resolution option (when applicable)
• FINTRAC: AML/ATF oversight framework
• ATS / CTP / FORM: trading venue categories (high level)

✅ Next: keep the Syllabus open as your coverage checklist, and use Practice to build decision speed.