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CIRO RSE

RSE

Exam Code: RSE

Exam Name: Retail Securities Exam

Updated: Aug 09, 2026

Q&A Number: 122 Q&As

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CIRO RSE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Mutual Funds and Exchange-Traded Funds (ETFs)20-24%- ETF structures, trading mechanisms, and characteristics
- Fund performance evaluation and suitability considerations
- Mutual fund structures, features, and fees
Topic 2: Know Your Client (KYC), Know Your Product (KYP), and Suitability18-22%- Client objectives, risk tolerance, time horizon, and financial circumstances
- Client information gathering and account opening requirements
- Suitability assessment and investment recommendations
Topic 3: Structured Products10-14%- Types and features of structured products
- Benefits, risks, and suitability considerations
Topic 4: Equities18-22%- Equity markets, trading, and investment strategies
- Equity securities characteristics and valuation
- Risks and taxation considerations of equity investments
Topic 5: Fixed Income Securities18-22%- Bond pricing, yields, duration, and interest rate risk
- Fixed income products and market characteristics
- Fixed income investment strategies and risks
Topic 6: Portfolio Construction and Investment Concepts10-14%- Investment strategies and client portfolio management
- Portfolio risk and return concepts
- Asset allocation and diversification principles

CIRO Retail Securities Sample Questions:

1. A Registered Representative posts on a personal social-media account that a particular fund is "guaranteed to earn at least 15% next year." The message was not reviewed through the Dealer's approved communication process. What is the primary compliance concern?

A) The statement is acceptable because it appears on a personal account
B) The only concern is whether the post receives client comments
C) The statement is acceptable if the RR genuinely expects a 15% return
D) The communication may be misleading, unapproved and improperly maintained outside firm channels


2. A client's Trusted Contact Person calls the Registered Representative and instructs the RR to sell all securities in the client's account because the client is experiencing memory problems. What should the RR do?

A) Execute the sale because the Trusted Contact Person is acting to protect the client
B) Execute the sale after obtaining the Trusted Contact Person's written confirmation
C) Transfer control of the account temporarily to the Trusted Contact Person
D) Decline to accept the trading instruction and follow the firm's procedures for addressing the capacity concern


3. Which of the following is a characteristic commonly associated with alternative investment funds?

A) Protection of the initial investment amount
B) Fixed returns with low volatility
C) Diversification across various asset classes
D) High liquidity and short holding periods


4. Which of the following is a key factor in valuing a manufacturing company's stock?

A) Consumer sentiment
B) Production efficiency
C) Inflation
D) Interest rates


5. An institutional-sized client order contains 100,000 shares, but the client wants only 5,000 shares displayed publicly at any time to reduce the order's visible market impact. Which order type is most appropriate?

A) Iceberg order
B) Market-on-open order
C) Fill-or-kill order
D) Sell on-stop order


Solutions:

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

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