Use this syllabus as your scenario checklist for CPH. Topic weightings are from CSI’s official Exam & Credits page; chapter mapping follows the official Curriculum page.
What’s covered
Standards of Conduct and Ethics, Ethical Decision Making, and Putting it All Together (23%)
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Chapter 1 - Standards of Conduct and Ethics
- Explain why standards of conduct exist: investor protection, market integrity, and confidence in capital markets.
- Describe “fair dealing” expectations in client interactions (honesty, good faith, and reasonable care).
- Differentiate rule compliance (minimum) from professionalism and ethics (often a higher bar).
- Identify common sources of conduct risk: incentives, conflicts, pressure to close, and poor documentation.
- Recognize misrepresentation by omission (missing material facts) versus explicit false statements.
- Identify when you must pause an activity until approvals, disclosures, or missing facts are resolved.
- Apply “client-first” thinking when a recommended action benefits the registrant or firm more than the client.
- Recognize that suitability is tied to current KYC and must be supported by a documented rationale.
- Explain why written records (KYC, disclosures, communications, approvals) are essential for auditability.
- Identify when matters should be escalated to a supervisor or compliance rather than handled informally.
- Recognize the difference between a policy question (what is allowed) and a judgment question (what is appropriate).
- Identify common conflict patterns (compensation, referral fees, outside business activity, personal trading) and the need to disclose/mitigate.
- Explain how integrating ethics with industry rules reduces the likelihood of “technical compliance, bad outcome” decisions.
- Apply rules-of-thumb that support good conduct: disclose early, document clearly, and avoid guarantees or absolute statements.
- Given a scenario, identify the conduct issue being tested (suitability, disclosure, conflict, market integrity, supervision, privacy).
- Given a scenario, choose the most defensible next action (gather facts, disclose, escalate, document) before executing a transaction.
- Given a scenario, choose the communication that is fair and balanced rather than promotional or misleading.
- Recognize the importance of competence and staying within the scope of training/authorization when giving advice.
- Recognize how timely correction and transparent reporting of errors supports conduct and supervision expectations.
- Select the best practice for handling client instructions: confirm authorization, capture key details, and retain records.
Chapter 2 - Ethical Decision Making
- Define values, ethics, and law, and explain how they relate but are not identical concepts.
- Explain why “legal” does not always equal “ethical,” especially in high-trust client relationships.
- Recognize how incentives and conflicts can distort judgment in advice and disclosure decisions.
- Identify stakeholders in an ethical dilemma (client, firm, market, regulators, colleagues) and competing duties.
- Differentiate a compliance question (rule/policy is clear) from an ethical dilemma (multiple plausible actions).
- Apply a structured ethical decision process: gather facts, identify rules/policies, consider options, evaluate consequences, choose, document.
- Identify information gaps that must be filled before acting (client objective, constraints, product risks, authority).
- Recognize common ethical dilemma patterns: pressure to meet targets, selective disclosure, and “just this once” exceptions.
- Explain why transparency and informed consent matter when recommending higher-risk or complex strategies.
- Identify how cognitive biases (anchoring, confirmation bias) can affect suitability and communication decisions.
- Recognize how privacy and confidentiality requirements interact with the need to escalate or report issues.
- Differentiate fair persuasion (education) from manipulation or high-pressure sales tactics.
- Apply “reputation test” and “newspaper test” heuristics to evaluate whether an action is defensible.
- Recognize that ethical conduct includes respecting client autonomy while ensuring suitability and risk disclosure.
- Given a scenario, identify which option best reduces client harm while remaining consistent with firm policy.
- Given a scenario, choose the action that strengthens documentation, disclosure clarity, and supervisory oversight.
- Given a scenario, choose the most appropriate way to resolve a conflict of interest (avoid, control, disclose, obtain approval).
- Given a scenario, select language that is balanced and does not overstate certainty or hide risks.
- Given a scenario, identify the “first action” that prevents a potential breach (pause trading, restrict access, consult compliance).
- Given a scenario, justify why escalation is the correct step when uncertainty exists.
Chapter 9 - Putting it All Together
- Integrate KYC, KYP, suitability, disclosure, and documentation into a single defensible client workflow.
- Identify missing facts in a case study and prioritize what must be gathered before recommending or trading.
- Apply ethical decision making to ambiguous scenarios where multiple policies and stakeholders are involved.
- Recognize when a series of small issues (documentation gaps, aggressive comms, frequent trades) forms a larger supervision concern.
- Choose the best next step when a client request conflicts with policy, suitability, or market integrity requirements.
- Apply a “stop → escalate → document” approach to complaints, suspicious activity, MNPI, and significant conflicts.
- Prioritize client protection and informed consent when discussing leveraged, illiquid, or complex products.
- Select the best way to correct an error while preserving transparency and compliance with firm procedures.
- Identify the records most likely to be required in a review: KYC forms, disclosures, communications, order details, and approvals.
- Recognize when a communication must be pre-approved (sales literature/marketing) and retained for recordkeeping.
- Diagnose whether an outcome reflects a suitability failure, disclosure failure, conflict failure, or supervision failure.
- Given a case study, choose the statement that best reflects fair dealing and realistic client expectations.
- Given a case study, choose the action that balances urgency with compliance (don’t shortcut KYC or approvals).
- Given a case study, identify which client constraint is controlling (liquidity, horizon, risk capacity, tax, legal).
- Given a case study, select the most appropriate escalation path (supervisor, compliance, AML officer) and documentation.
- Given a case study, decide whether to proceed, defer, or decline an instruction based on authorization and suitability.
- Given a case study, identify the policy breach risk and the preventive control that should have caught it.
- Given a case study, recommend how to prevent recurrence (training, supervision, process change).
The Canadian Regulatory Framework (12%)
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Chapter 3 - The Canadian Regulatory Framework
- Explain general principles of securities regulation: investor protection, fair and efficient markets, and confidence.
- Differentiate the roles of provincial securities administrators, self-regulatory organizations, and member firms (high level).
- Recognize that rules can differ by product, account type, and activity, and that firm policy operationalizes requirements.
- Identify key government players involved in securities regulation (conceptual) and their broad mandates.
- Explain what a self-regulatory organization is and why member firms and registrants are subject to SRO rules and oversight.
- Recognize that CIRO rules and firm procedures guide day-to-day conduct expectations for registrants.
- Explain the purpose of investor protection funds and what they are designed (and not designed) to cover (conceptual).
- Differentiate “market loss” from issues related to dealer insolvency or account administration (conceptual).
- Explain why recordkeeping and surveillance are core regulatory expectations (auditability and supervision).
- Recognize the importance of knowing which document is authoritative in a question (rule, by-law, policy, procedure).
- Describe money laundering and terrorist financing risk at a high level and why securities accounts can be used for illicit purposes.
- Identify common AML/ATF red flags relevant to the securities industry (unusual deposits/withdrawals, reluctance to provide ID, third-party activity).
- Recognize that AML concerns are handled through escalation and documentation, and that “tipping off” is prohibited.
- Given a scenario, identify when to involve compliance/legal due to regulatory or policy uncertainty.
- Given a scenario, select the correct high-level regulator/SRO/firm control category responsible for the issue.
- Given a scenario, choose the best course of action when regulatory obligations conflict with client pressure.
- Given a scenario, choose the best first action for suspicious activity (gather required information per policy, escalate, document).
- Given a scenario, identify the record most important to produce in a review (KYC, disclosures, communications, order details).
- Given a scenario, choose the most defensible interpretation: follow policy, document, and escalate when uncertain.
- Recognize the distinction between public information and confidential information in regulatory and client contexts.
- Recognize that continuing competence and training are part of maintaining regulatory standards (conceptual).
Working with Clients (13%)
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Chapter 4 - Working with Clients
- Recognize registration-related obligations of a registered representative (scope of activity and supervision) at a practical level.
- Differentiate dealing fairly with clients from promotional selling; prioritize suitability and informed consent.
- Identify what makes a client communication misleading (imbalanced benefits/risks, cherry-picked performance, implied guarantees).
- Apply basic rules for communicating with the public: clarity, balance, and adherence to firm approval processes.
- Recognize when sales literature/marketing content requires approval and retention as part of recordkeeping.
- Explain why client instructions must be confirmed, authorized, and captured accurately (especially for trade-related decisions).
- Identify appropriate ways to handle client pressure, urgency, or emotional reactions while maintaining professionalism.
- Recognize complaint indicators and when to shift from “service” to “formal complaint process” behavior.
- Identify when an advice/recommendation discussion must include risk, cost, liquidity, and suitability framing.
- Explain the practical importance of privacy obligations when collecting, using, or sharing client information.
- Recognize cybersecurity risks that can affect client confidentiality and account safety (phishing, credential theft, impersonation).
- Given a scenario, choose the most compliant way to communicate a product’s risks and limitations.
- Given a scenario, choose the best action when a client requests a guarantee or certainty about outcomes.
- Given a scenario, identify whether an issue is primarily communications risk, suitability risk, or privacy risk.
- Given a scenario, choose the best response to a suspicious email/identity verification issue (pause, verify, escalate).
- Given a scenario, choose the best way to correct a misleading statement previously made to a client (clarify, document, escalate).
- Given a scenario, select the most appropriate documentation to retain for a communication (email, approved materials, notes).
- Given a scenario, decide whether to proceed with a client instruction when authorization is unclear.
- Recognize how conflicts of interest can be communicated and mitigated during client interactions (conceptual).
- Recognize when to involve a supervisor for guidance on client communications or conduct concerns.
- Recognize when cybersecurity or privacy incidents require immediate escalation per firm policy.
Client Discovery and Account Opening (13%)
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Chapter 5 - Client Discovery and Account Opening
- Explain why client discovery (KYC) is foundational to suitability, disclosure, and ongoing account supervision.
- Identify the key information gathered when opening an account (identity, objectives, risk, horizon, liquidity, financial situation).
- Recognize when enhanced due diligence is appropriate (complex structures, third-party involvement, high-risk situations).
- Explain the role of the New Account Application Form (NAAF) as the baseline KYC record (conceptual).
- Identify typical errors in account opening that create compliance risk (missing signatures, vague objectives, stale information).
- Distinguish risk tolerance (willingness) from risk capacity (ability) and why both matter in KYC and suitability.
- Recognize the importance of properly documenting client instructions, limitations, and restrictions.
- Identify the types of disclosures commonly delivered at account opening (fees, conflicts, risks, privacy, relationship disclosure).
- Recognize client record obligations: accuracy, completeness, retention, and timely updates when circumstances change.
- Identify triggers for updating KYC and suitability assessments (life events, withdrawals, change in goals or constraints).
- Explain why incomplete KYC should halt recommendations or trading decisions until resolved.
- Recognize when trading authority or power of attorney requires confirmation and documentation before acting.
- Given a scenario, identify the missing KYC item that prevents a defensible recommendation (horizon, liquidity, capacity).
- Given a scenario, choose the best next action when KYC is outdated (update, reassess suitability, document).
- Given a scenario, choose the best way to document a suitability rationale so it is auditable and client-centered.
- Given a scenario, choose the best disclosure action before a client proceeds (plain language, timely, recorded).
- Given a scenario, choose the best response when a client refuses to provide required information (escalate, document, follow policy).
- Given a scenario, identify which client record is most important to update after a change in circumstances.
- Given a scenario, identify which account-opening control should have prevented an error (checklists, approvals, verification).
- Recognize how privacy requirements shape what can be collected, used, and shared during account opening (conceptual).
- Recognize when AML identification/verification and source-of-funds questions must be escalated per firm policy (conceptual).
Product Due Diligence, Recommendations, and Advice (13%)
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Chapter 6 - Product Due Diligence, Recommendations, and Advice
- Explain suitability as matching product/strategy to the client’s objectives, horizon, liquidity, and risk profile.
- Recognize that suitability depends on current KYC and must be revisited when circumstances change.
- Differentiate “know your product” (KYP) due diligence from “know your client” (KYC) discovery (conceptual).
- Identify the core elements of product due diligence: risks, costs, liquidity, complexity, and appropriate use cases.
- Recognize when a product’s complexity or risk profile requires enhanced disclosure and documentation.
- Identify the difference between recommending a product and executing an unsolicited client instruction (and why documentation still matters).
- Recognize concentration and leverage as high-risk suitability themes that trigger supervision and deeper rationale.
- Explain why alternatives should be considered and why the chosen option must be justified in the client file (conceptual).
- Identify what must be disclosed before a client acts: key risks, costs, limitations, and conflicts (plain language).
- Recognize when referral arrangements or compensation structures create conflicts that must be disclosed/approved (conceptual).
- Explain the purpose of prospectuses and the concept of prospectus exemptions at a high level.
- Recognize high-level “new issue” risks: limited information, liquidity constraints, and allocation/handling practices (conceptual).
- Identify why take-over bids and issuer bids create special conduct and disclosure considerations (conceptual).
- Given a scenario, identify whether suitability is the controlling issue versus communications or authorization.
- Given a scenario, choose the best next action when a product is inconsistent with the client’s horizon or liquidity needs.
- Given a scenario, select the best disclosure statement that is balanced and avoids implied guarantees.
- Given a scenario, choose the best documentation item to support advice (KYC facts, risk discussion, trade-offs).
- Given a scenario, choose whether to recommend, defer pending more information, or decline due to policy/suitability constraints.
- Given a scenario, identify which KYP question is most important to answer (lockups, leverage, credit risk, fees).
- Given a scenario, choose the best way to handle a client insisting on a high-risk strategy (educate, warn, document, escalate).
- Recognize when supervisory review or pre-approval is likely required due to product risk or conflict (conceptual).
Trading, Settlement, and Prohibited Activities (13%)
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Chapter 7 - Trading, Settlement, and Prohibited Activities
- Describe at a high level how securities are traded (orders, venues, execution, confirmation) and why process matters.
- Differentiate common order types (market, limit, stop, stop-limit) and identify their key risks and trade-offs.
- Recognize the importance of authorization and accurate order instructions before placing a trade.
- Explain best execution at a practical level: seeking the best overall terms reasonably available, consistent with policy.
- Identify sales and trading conduct expectations: fair dealing, appropriate disclosure, and avoiding misleading statements.
- Recognize prohibited activities that harm clients or market integrity (unauthorized trading, churning, manipulation, misuse of MNPI).
- Differentiate front-running from legitimate trading and explain why it is prohibited (conceptual).
- Recognize how insider information risk can appear in scenarios (rumours, “friend at issuer,” confidential deal information).
- Apply a “stop → escalate → document” approach when MNPI or manipulation risk is suspected.
- Explain the purpose of settlement and why timely settlement, transfers, and corrections are controlled activities.
- Recognize when a trade error requires immediate escalation and formal correction rather than informal “fixes.”
- Identify common settlement-related documents and client communications (trade confirmations, statements) conceptually.
- Recognize transfer and correction scenarios that require careful recordkeeping and approvals (conceptual).
- Given a scenario, identify whether the issue is order handling, suitability, or prohibited conduct.
- Given a scenario, choose the best first action for an order placed in error (escalate, document, follow procedure).
- Given a scenario, identify which order type best fits stated constraints (price certainty vs execution certainty).
- Given a scenario, choose the most appropriate response when a client asks you to trade on a rumour or confidential tip.
- Given a scenario, identify the prohibited practice most consistent with the facts (churning, unauthorized trading, manipulation).
- Given a scenario, select the best client-facing explanation that is accurate and compliant during a trade issue.
- Given a scenario, choose the best approach to document and remediate a conduct or trading breach (policy-driven).
- Recognize that supervision and surveillance are designed to detect patterns in trading activity (conceptual).
Maintaining Client Accounts and Relationships (13%)
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Chapter 8 - Maintaining Client Accounts and Relationships
- Recognize ongoing account obligations: monitoring, communication, documentation updates, and responding to client needs.
- Explain at a high level how client transactions are recorded and why accuracy matters for statements and reviews.
- Identify typical client trading information delivered to customers (confirmations, statements) and why clarity matters.
- Recognize why margin accounts have additional risks and controls (leverage, margin calls, interest) at a conceptual level.
- Differentiate margin accounts from cash accounts and identify common scenario cues for each.
- Recognize client responsibilities and firm responsibilities in margin account scenarios (conceptual, policy-driven).
- Identify what a margin call implies (insufficient margin) and the need to act according to firm procedure.
- Explain why borrowing/leverage requires heightened suitability, disclosure, and documentation (conceptual).
- Recognize the importance of communicating trading information promptly and accurately to customers.
- Identify what constitutes a client complaint and why complaints follow a defined intake and escalation process.
- Differentiate “service issue” vs “complaint” behavior: document, escalate, and avoid informal promises.
- Recognize what not to do in a complaint: do not admit fault, do not promise compensation, do not retaliate, do not hide records.
- Explain the purpose of account transfer requests and why they must follow controlled procedures (conceptual).
- Identify records typically relevant to a complaint or account transfer (communications, KYC, trade records).
- Given a scenario, choose the best first action upon receiving a complaint (acknowledge, document, escalate).
- Given a scenario, choose the best next action for a margin deficiency scenario (notify/escalate, follow procedure, document).
- Given a scenario, identify which client account type is implied (cash vs margin) and the key risk/constraint.
- Given a scenario, choose the most compliant way to communicate account activity or a correction to a client.
- Given a scenario, choose the action that best preserves the audit trail (retain records, document rationale, escalate).
- Given a scenario, identify which account maintenance control failed (stale KYC, missing disclosure, poor supervision).
- Recognize when recurring issues indicate a supervision concern requiring corrective action (conceptual).
Tip: When in doubt, pick the answer that increases documentation quality, reduces conflicts, and escalates appropriately.
Sources: https://www.csi.ca/en/learning/courses/cph/curriculum and https://www.csi.ca/en/learning/courses/cph/exam-credits