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CIRO Retail Securities : RSE

RSE

Exam Code: RSE

Exam Name: Retail Securities Exam

Updated: Aug 13, 2026

Q & A: 122 Questions and Answers

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CIRO RSE Exam Syllabus Topics:

SectionWeightObjectives
Mutual Funds and ETFs20–24%- Suitability and sales obligations
- Fund structures and disclosure documents
Fixed Income18–22%- GICs and other retail fixed-income products
- Bond characteristics and pricing
Portfolio Construction and Managed Accounts10–14%- Registered account types
- Asset allocation and risk metrics
Equities18–22%- Equity product features and risks
- Trading mechanics and market structure
Trade Execution and Market Integrity8–12%- Order routing and best execution
- Prohibited practices and compliance
Structured Products10–14%- Product types and risk profiles
- Applicable regulatory rules
KYC and Suitability20–24%- Suitability determination and documentation
- Client information collection and updates
Client Monitoring and Relationship Management8–12%- Complaint handling procedures
- Performance reporting and CRM2

CIRO Retail Securities Sample Questions:

1. Which of the following factors is commonly targeted by smart beta strategies?

A) Earnings growth
B) Market capitalization
C) Value
D) Price volatility


2. An Investment Dealer materially changes its advisory fee schedule and restricts the range of products available to retail clients. What should the Dealer do concerning relationship disclosure?

A) Provide disclosure only to clients who submit a written complaint
B) Wait until each client places their next trade
C) Provide updated disclosure explaining the material changes to affected clients
D) Update only the Dealer's internal policy manual


3. An investor owns 600 common shares trading at $45 per share. The company declares a 3-for-2 stock split.
Assuming no market movement, what should the investor hold immediately after the split?

A) 400 shares trading at approximately $67.50
B) 600 shares trading at approximately $30
C) 900 shares trading at approximately $30
D) 900 shares trading at approximately $45


4. A company wants to raise capital but prefers to delay equity dilution while still attracting investors interested in potential ownership. Which type of bond is most suitable?

A) Sinking fund bonds
B) Extendable bonds
C) Callable bonds
D) Convertible bonds


5. An Investment Dealer notices a pattern of unsuitable unsolicited trades in an investor's account. What action should the Investment Dealer take?

A) Cancel past transactions and restrict future trades if the pattern continues
B) Require the investor to undergo additional suitability assessments before placing future trades
C) Flag the account for monitoring but take no immediate action unless a complaint arises
D) Review the Registered Representative's (RR's) documentation and consider intervention if the pattern continues


Solutions:

Question # 1
Answer: C
Question # 2
Answer: C
Question # 3
Answer: C
Question # 4
Answer: D
Question # 5
Answer: D

Related Certifications
CIRO Registered Representative (RR)
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