Use this syllabus as your coverage checklist for BCO. Topic weightings and exam structure are from CSI’s official Exam & Credits page; chapter mapping follows the official Curriculum page.
What’s covered
The Role of a Branch Compliance Officer (6%)
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Chapter 1 - The Role of a Branch Compliance Officer
- Describe the purpose of branch-level compliance oversight in a mutual fund dealing representative environment.
- Define the Branch Compliance Officer’s (BCO) role and explain how it supports investor protection and firm risk management.
- Identify core responsibilities of a BCO (supervision, reviews, documentation control, escalation, and training).
- Differentiate the responsibilities of the BCO, head office compliance, and a regional compliance officer at a high level.
- Describe how a BCO interacts with sales representatives to reinforce compliant client-facing behaviours.
- Explain why consistent documentation and evidence retention are essential to branch compliance.
- Describe the physical structure of a branch and identify how physical layout can support or hinder supervision.
- Identify practical controls in a branch setting that reduce privacy and confidentiality risks (secure storage, restricted access).
- Describe communication channels between branch staff and head office compliance for questions, escalations, and guidance.
- Recognize situations that require immediate escalation to compliance (complaints, AML concerns, suitability red flags, potential misconduct).
- Explain the purpose of branch supervision checklists and how they support consistent oversight.
- Identify typical training needs for branch staff (KYC, suitability, disclosure, complaints, and prohibited practices).
- Describe how staff training should be documented and monitored to demonstrate compliance oversight.
- Recognize common branch compliance failures (missing KYC, incomplete disclosures, weak supervision evidence).
- Given a scenario, choose an appropriate first action for a BCO (document, review, escalate, or halt activity).
- Describe the relationship between supervision, controls, and audit readiness at branch level.
- Identify how a BCO helps create a culture of compliance through tone, coaching, and consistent consequences.
- Explain how periodic reviews and follow-up actions reduce repeated errors and misconduct risk.
Mutual Funds Industry Regulation (12%)
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Chapter 2 - Mutual Fund Industry Regulation
- Describe the purpose of securities regulation in Canada at a high level (investor protection and market integrity).
- Identify the role of provincial and territorial securities acts in regulating securities activity.
- Explain the role of the Canadian Securities Administrators (CSA) in harmonizing regulatory approaches across jurisdictions.
- Identify the role of self-regulatory organizations and how they support oversight of member firms and registrants.
- Describe how regulation and firm policies translate into branch-level supervision responsibilities.
- Identify the purpose of anti-money laundering (AML) and anti-terrorist financing (ATF) laws in financial services.
- Recognize common AML/ATF red flags in a branch context and describe expected escalation behaviour at a high level.
- Describe the importance of client identification, recordkeeping, and reporting in AML/ATF programs (conceptual).
- Define purchasers’ statutory rights at a high level and recognize how they may affect disclosure and transaction handling.
- Describe standards of conduct themes applicable to mutual fund dealings (fair dealing, conflicts, disclosure, and suitability).
- Explain why “client focused reforms” matter to branch supervision (conflicts, suitability, and product due diligence themes).
- Recognize how conflicts of interest can arise in a branch and identify high-level approaches to manage them (disclose, avoid, mitigate).
- Describe rules for telemarketing and the National Do Not Call List (DNCL) at a high level.
- Identify compliance risks in marketing and outbound calling activity (consent, scripts, recordkeeping, and prohibited practices).
- Given a scenario, determine whether an action increases regulatory risk and should be escalated.
- Explain how documentation quality supports regulatory expectations and defensible supervision.
- Describe why supervision evidence (reviews performed, exceptions resolved) is essential in regulatory examinations.
- Identify how regulatory change can affect branch procedures and training needs.
- Recognize how client complaints and investigations can trigger regulatory reporting requirements conceptually.
- Describe the high-level consequences of regulatory non-compliance for a firm and individuals (sanctions, restrictions, reputational harm).
Registration Requirements (12%)
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Chapter 3 - Registration Requirements
- Describe the purpose of registration requirements for sales representatives and firms.
- Outline the sales representative registration process at a high level (application, approval, and ongoing conditions).
- Identify qualification expectations for sales representatives and explain why proficiency matters for client protection.
- Describe how firm supervision supports maintaining registration standards over time.
- Identify specific restrictions that may apply to sales representatives and how a branch enforces them.
- Explain why monitoring for restricted activities is part of branch supervision.
- Identify investment industry registration categories at a high level and how they relate to permitted activities.
- Describe post-registration requirements (updates, continuing education, and supervision) at a high level.
- Explain post-registration reporting and compliance responsibilities conceptually (notifying, updating, documenting).
- Describe the purpose of continuing education and how it supports competence and compliant advice.
- Identify what a BCO should monitor to detect registration-related issues (lapsed registration, unapproved activities, missing CE).
- Describe how branch records can support registration oversight (training logs, attestations, supervision evidence).
- Recognize common registration failures (acting outside category, missing disclosures, inadequate supervision) and their risks.
- Given a scenario, determine whether a sales representative’s activity requires additional approval or restriction.
- Describe the role of policies and procedures in standardizing registration compliance checks.
- Explain why role clarity and job descriptions help reduce unauthorized activity in a branch.
- Identify when to escalate registration concerns to head office compliance or supervision.
- Describe how changes in a representative’s circumstances can trigger registration updates (conceptual).
- Explain the relationship between registration oversight and overall branch risk management.
- Recognize why documentation and prompt reporting reduce the risk of regulatory sanctions.
Account Opening (14%)
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Chapter 4 - Account Opening
- Describe why account opening is a key control point for suitability, disclosure, and AML compliance.
- Identify steps that occur before opening an account (client identification, documentation collection, and relationship setup).
- Describe the client–sales representative relationship at account opening and the importance of clear roles and expectations.
- Identify common account opening and order forms used in mutual fund dealings and what they are meant to capture.
- Describe how to complete an account opening form accurately and why completeness matters for supervision.
- Identify required Know Your Client (KYC) information elements at a high level (objectives, risk tolerance, time horizon, and constraints).
- Explain why KYC information must be current and supported by documentation when appropriate.
- Identify common account types and describe how account type affects documentation and supervision needs.
- Recognize account protection measures (signature controls, identity verification, and secure processing) at a high level.
- Describe branch-level controls that reduce unauthorized transactions and fraud risk (approvals, call-backs, and audit trails).
- Describe AML/ATF requirements relevant to account opening at a high level (identification, verification, and recordkeeping).
- Recognize when an account opening pattern may present AML/ATF risk and requires escalation.
- Describe the Foreign Account Tax Compliance Act (FATCA) conceptually and recognize when it affects account documentation.
- Identify the purpose of powers of attorney (POA) and how they affect account authority and controls.
- Describe how internal control systems and procedures support compliant account opening (segregation of duties and checklists).
- Explain why updating client information is a compliance requirement and how update triggers are identified.
- Identify typical KYC update triggers (material life changes, portfolio changes, or time-based review) at a high level.
- Given a scenario, determine the correct next step when account opening information is incomplete (hold, request, escalate).
- Recognize common account opening errors that create suitability or documentation risk (missing signatures, stale KYC, wrong account type).
- Describe how a BCO validates account opening quality through periodic sampling and follow-up.
- Explain how evidence retention (forms, notes, disclosures delivered) supports audits and complaint defence.
- Describe how branch staff training reduces account opening errors and repeated deficiencies.
Disclosure and Suitability Requirements (24%)
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Chapter 5 - Disclosure Requirements
- Describe why disclosure is required at branch level and how it supports informed client decisions.
- Identify common disclosure requirements in mutual fund sales (fees, risks, conflicts, and product information) at a high level.
- Describe Fund Facts and identify when it must be delivered (conceptual timing and evidence expectations).
- Identify other documents that may need to be delivered and retained as part of the disclosure process.
- Describe additional disclosure requirements that can arise from account type, client segment, or transaction type (conceptual).
- Explain the importance of delivering disclosure in the required form (plain language, accessible, and complete).
- Recognize the difference between disclosure provided and disclosure evidenced (proof-of-delivery discipline).
- Describe methods to maintain evidence that disclosures have been provided (sign-offs, logs, electronic confirmations).
- Identify common disclosure failures (missing Fund Facts, unclear fee explanations, outdated materials).
- Describe the branch’s role in supervising sales communications to ensure they are fair, balanced, and not misleading.
- Recognize marketing and performance communication risks and the need for approved materials.
- Given a scenario, determine which disclosure document is required and what evidence should be retained.
- Explain how disclosure ties to suitability and why missing disclosure can create complaint and liability risk.
- Identify how conflict of interest disclosures should be handled (timely, clear, and documented) conceptually.
- Describe how branch review checklists support consistent disclosure compliance.
- Recognize situations where additional explanation is needed to ensure client understanding (complex products or leverage).
- Describe how to remediate a disclosure deficiency discovered after the fact (document, correct, and escalate).
- Explain why repeated disclosure issues should trigger training, monitoring, and potential supervision escalation.
Chapter 6 - Suitability Requirements
- Define suitability and explain why it is a central obligation in mutual fund dealings.
- Describe what makes an investment suitable relative to a client’s objectives, constraints, and risk profile.
- Identify factors used in suitability assessment (time horizon, liquidity needs, risk tolerance, and knowledge) at a high level.
- Differentiate solicited and unsolicited orders and explain how supervision expectations can differ.
- Describe how suitability applies to both account-level decisions and individual transactions conceptually.
- Explain how leverage use changes suitability analysis and increases documentation and disclosure expectations.
- Recognize common leverage red flags and when additional scrutiny or escalation is required.
- Describe suitability and reasonableness expectations at a high level (why a recommendation is defensible).
- Identify common suitability failures (concentration, mismatch to time horizon, unsuitable risk exposure).
- Describe the role of KYC completeness and updates in supporting suitability decisions.
- Explain why suitability documentation should connect client facts to the recommendation rationale.
- Given a scenario, determine whether a recommendation is likely unsuitable and what the BCO should do next.
- Recognize how conflicts of interest can impair suitability and how supervision mitigates it.
- Describe how branch supervision detects suitability risk (exception reports, concentration flags, leverage monitoring).
- Identify supervision actions when suitability concerns arise (review, coaching, restrictions, escalation).
- Explain why trade approvals or pre-approvals may be used for higher-risk situations (leverage or vulnerable clients).
- Describe how suitability obligations connect to complaint handling and potential client harm remediation.
- Recognize why consistent application of suitability standards strengthens compliance culture and reduces regulatory risk.
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- Define net asset value (NAV) and net asset value per unit (NAVPU) and describe why they matter to investors.
- Describe how NAV or NAVPU is determined at a high level (assets minus liabilities divided by units).
- Explain the difference between price changes and total return (including distributions) conceptually.
- Describe how mutual fund distributions can affect a client’s account value and reported performance.
- Identify common distribution types at a high level (income, capital gains, return of capital) conceptually.
- Describe the taxation of mutual fund income at a high level and recognize why after-tax results can differ from pre-tax performance.
- Explain why the timing of distributions can affect apparent performance and client perceptions.
- Describe performance measurement concepts used in mutual funds (period returns, annualized returns) at a high level.
- Recognize the difference between short-term and long-term performance interpretation and common pitfalls.
- Identify why benchmark selection and peer comparisons matter when evaluating performance conceptually.
- Describe how fees and expenses can affect net performance outcomes for clients.
- Recognize the importance of fair and balanced performance communication at branch level.
- Given a scenario, identify whether a performance statement is potentially misleading and needs correction.
- Explain why documentation and evidence retention matter for performance communications (approved materials and calculations).
- Describe the role of the BCO in supervising rates of return communications and ensuring consistent methodology.
- Identify common performance reporting issues (wrong period, missing distributions, inconsistent annualization).
- Describe how to remediate a performance communication error (correct, notify, document, and prevent recurrence).
- Recognize how performance misunderstandings can trigger complaints and how prevention reduces risk.
Dealing with Complaints (6%)
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Chapter 8 - Dealing with Complaints
- Define a client complaint and describe why prompt, structured handling is a compliance requirement.
- Describe the typical lifecycle of a complaint (intake, logging, escalation, investigation, resolution).
- Identify what information should be captured when a complaint is received (facts, dates, products, and communications).
- Explain why preserving evidence (notes, emails, recordings where applicable) is critical during investigations.
- Describe how to report a client complaint internally and when to involve head office compliance.
- Recognize indicators of more serious complaints (allegations of misconduct, leverage harm, vulnerable clients, large losses).
- Describe escalation triggers for more serious complaints and why time sensitivity matters.
- Describe best practices for complaint resolution (clear communication, fairness, and documentation).
- Recognize the difference between resolving the client issue and remediating the control weakness that caused it.
- Identify how complaint trends can signal supervision problems and training needs.
- Describe how to handle “problem clients” while still meeting conduct and fairness expectations.
- Recognize behaviours that can worsen complaint risk (defensiveness, delayed responses, incomplete records).
- Given a scenario, determine the correct next action for a complaint (log, escalate, investigate, or restrict activity).
- Explain why confidentiality and careful communications are important during a complaint process.
- Describe how compensation or remediation decisions should be documented and approved as required.
- Identify post-incident actions after a complaint (root cause analysis, training, and monitoring).
- Recognize the reputational and regulatory consequences of mishandling complaints.
- Describe how a BCO helps ensure consistent complaint handling across representatives and cases.
Sales Representatives Supervision and Control Systems (18%)
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Chapter 9 - Sales Representative Supervision
- Describe how to supervise the relationship between the client and the sales representative at a high level.
- Explain confidentiality obligations and identify practical controls to protect client information at branch level.
- Describe supervision expectations for mutual funds performance communications (fair, balanced, and supported).
- Identify risks in describing fees and loads and explain how to supervise fee communication quality.
- Describe how to supervise rates of return communications to clients and ensure consistent calculation methods.
- Explain why client account performance reporting must be accurate, understandable, and supported by evidence.
- Identify unacceptable sales practices and describe how supervision detects and prevents them.
- Differentiate prohibited activities of non-registered sales staff versus registered sales staff at a high level.
- Describe why role clarity and access controls help prevent prohibited activities in a branch.
- Describe order supervision at a high level (reviewing trades for suitability, documentation, and patterns).
- Identify sales practices supervision activities (sampling, trend review, coaching, and escalation).
- Explain why disclosure of conflicts of interest must be supervised and evidenced.
- Recognize patterns that indicate heightened conduct risk (complaint clusters, concentration, leverage use, or unusual trading).
- Given a scenario, identify the most appropriate supervisory response (review, coach, restrict, escalate).
- Describe how supervision evidence should be documented (what was reviewed, findings, and follow-up actions).
- Explain why consistent supervision standards reduce regulatory exposure and improve client outcomes.
- Identify when to involve head office compliance for supervision issues (repeat breaches, serious misconduct, systemic controls failure).
- Describe how training and supervision reinforce each other in reducing sales practice risk.
- Recognize how supervision should adapt for vulnerable clients or higher-risk products (enhanced review).
- Describe how the BCO balances coaching with enforcement to maintain compliance culture.
Chapter 10 - Supervisory and Control Systems
- Describe the purpose of supervisory and control systems at branch level (prevent, detect, and correct issues).
- Identify control system elements that ensure sales representatives are properly registered and supervised.
- Describe controls that support disclosure compliance (delivery workflows, approvals, and evidence retention).
- Describe controls for leverage disclosure and why leverage requires enhanced documentation and supervision.
- Explain how control systems ensure new client information is complete and accurate (checklists and validation steps).
- Describe reporting and compliance responsibilities related to client account information (updates, exception handling) at a high level.
- Identify controls for periodically updating client information and tracking when updates are due.
- Define standards of supervision at branch level and describe what “reasonable supervision” looks like conceptually.
- Describe the purpose and structure of an internal branch sales checklist and how it supports consistent reviews.
- Describe a business and ethical responsibilities checklist and how it supports conduct risk management.
- Recognize the importance of segregation of duties and approvals in preventing fraud and operational errors.
- Explain how exception reports and trend monitoring help detect suitability, disclosure, and conduct issues.
- Describe how control testing validates that policies are being followed and identifies gaps.
- Given a scenario, determine which control should be strengthened to address a repeated deficiency.
- Describe how remediation plans should be documented, assigned, and tracked to completion.
- Explain why training is part of the control system and how training effectiveness can be monitored.
- Identify common control failures (paper controls not used, inconsistent checklists, missing follow-up).
- Describe how a BCO prioritizes controls based on risk and exam weightings (focus on suitability and supervision).
- Recognize when systemic control weaknesses require escalation to head office (policy changes, additional resources).
- Describe how control system discipline improves audit outcomes and reduces complaint frequency.
Tip: The fastest score gains come from mastering evidence: what must be on file, what must be delivered, and what must be escalated.
Sources: https://www.csi.ca/en/learning/courses/bco/curriculum and https://www.csi.ca/en/learning/courses/bco/exam-credits