Element 1: Know-Your-Client (KYC) & suitability +2CIRO · Securities · English

Covers the foundational relationship between a Registered Representative and their client, including cross-border considerations.

• ✓The client relationship model
• ✓Concepts of trust, agency and conflicts of interest
• ✓Procedures and requirements for working with clients residing in the United States, including snowbirds and other foreign jurisdictions as applicable
• ✓Considerations for changes in residence

Addresses the range of client information required to fulfill KYC obligations.

• ✓Financial circumstances: income, liquidity needs, financial assets, liabilities, net worth, whether the client is borrowing to invest
• ✓Personal circumstances
• ✓Investment knowledge
• ✓Risk profile
• ✓Investment objectives and needs
• ✓Investment constraints and restrictions including EDI, ESG and other personal preferences
• ✓Investment time horizon

Covers thorough assessment of a client's risk tolerance, capacity and need.

• ✓The client's willingness to accept risk or risk tolerance, including behavioural aspects
• ✓The client's ability to endure financial loss or risk capacity
• ✓How much risk is needed to achieve the client's goals or risk need
• ✓Resolving conflicts between a client's expectations and risk profile

Covers different business structures and how they impact investment opportunities.

• ✓Sole proprietorship
• ✓Partnership
• ✓Corporation (private vs. public)
• ✓Co-operative

Addresses the need to accurately document client discussions and have clients confirm accuracy.

Covers application of trusted contact person requirements to specific scenarios.

• ✓How to establish a trusted contact person
• ✓What this permits and what it does not permit
• ✓Actions if the client refuses to provide a trusted contact person
• ✓When to contact a trusted contact person
• ✓How to recognize potential capacity concerns
• ✓How to recognize financial exploitation issues
• ✓Conditions for using temporary holds
• ✓Document the discussion

Covers primary responsibility, prohibition on KYC delegation and the obligation to keep KYC current.

Covers the types of client account records and information gathered.

• ✓Verification of identity
• ✓Account appropriateness assessment
• ✓KYC information
• ✓Acknowledgement of disclosures
• ✓Record of trusted contact person refusal

Covers application of the account appropriateness obligation to specific scenarios.

Covers matching account features, advantages and disadvantages to client requirements.

• ✓Advisory (non-managed) account – fee-based and commission-based
• ✓Managed account
• ✓Discretionary account
• ✓Cash account vs. margin account

Covers documentation related to account opening and information collected.

• ✓Investment Dealer's business model
• ✓Relationship with clients
• ✓Investment products and services offered by the Investment Dealer
• ✓Conditions for when to collect one set of KYC information for multiple accounts

Covers the purpose and required elements of the Relationship Disclosure document.

• ✓Objective
• ✓Frequency of provision
• ✓Form and format
• ✓Content
• ✓Review

Covers the importance of protecting confidential information within an Investment Dealer.

• ✓Information barriers and firewalls
• ✓Grey and restricted lists
• ✓The role of investment banking, the research department and corporate finance
• ✓Cybersecurity
• ✓Privacy

Covers the purpose of documents provided to clients in the Welcome Package.

• ✓Fee schedule
• ✓CIRO brochures (CIRO Complaints Brochure, How CIRO protects investors, Opening an Investment Account)
• ✓Canadian Investor Protection Fund
• ✓Derivative Risk Disclosure
• ✓Investment Dealer conflict of interest disclosures
• ✓Investment Dealer complaint handling procedures

Covers the product due diligence obligation on the Dealer and the Approved Person.

• ✓The Investment Dealer
• ✓The Approved Person

Covers application of the KYP obligation to all investments purchased, sold or recommended.

• ✓Structure
• ✓Features (initial and ongoing costs)
• ✓Risks (impact of costs)

Covers application of suitability determination requirements to specific situations.

• ✓The relationship of KYC to recommendations
• ✓The need to avoid excessive switches (churning)

Covers obligations where client instructions are unsolicited or unsuitable.

Covers applying types of investment action to specific situations.

• ✓Purchasing
• ✓Selling
• ✓Holding a position
• ✓Depositing
• ✓Exchanging or transferring securities

Covers the difference between account appropriateness and suitability determination.

Covers Dealer and regulatory requirements for monitoring and maintaining accounts, including triggering events.

Covers analysis of how relevant changes affect suitability for a client's portfolio.

• ✓Material change to the client's circumstances
• ✓Product and market research
• ✓Economic, political and social events
• ✓Emerging issues, financial trends, economic trends and world news

Covers regulatory requirements for managing conflicts of interest.

• ✓Identifying
• ✓Avoiding
• ✓Addressing
• ✓Disclosure

Covers requirements relating to outside activities in specific situations.

• ✓Definition
• ✓Pre-approval
• ✓Disclosure

Covers requirements relating to personal financial dealings with clients.

• ✓Prohibition and action relating to accepting consideration, settlement agreements, borrowing/lending, control or authority, comingling of assets
• ✓Business partnerships
• ✓Investment clubs

Covers application of Dealer policies and procedures for managing conflicts of interest.

• ✓Effective controls and qualified supervision
• ✓Applicable due diligence process for approvals
• ✓Appropriate record-keeping

Covers application of CIRO standards of conduct to situations involving representatives, clients and firms.

Examines how to assess a client's risk profile through willingness, ability and need for risk.

• ✓The client's willingness to accept risk or risk tolerance, including behavioural aspects
• ✓The client's ability to endure financial loss or risk capacity
• ✓How much risk is needed to achieve the client's goals or risk need
• ✓Resolving conflicts between a client's expectations and risk profile

Covers different business structures and how they affect investment opportunities.

• ✓Sole proprietorship
• ✓Partnership
• ✓Corporation (private vs. public)
• ✓Co-operative

Applies trusted contact person requirements to scenarios, including establishment, permissions and use.

• ✓How to establish a trusted contact person
• ✓What this permits and what it does not permit
• ✓Actions if the client refuses to provide a trusted contact person
• ✓When to contact a trusted contact person
• ✓How to recognize potential capacity concerns
• ✓How to recognize financial exploitation issues
• ✓Conditions for using temporary holds
• ✓Document the discussion

Covers the prohibition on KYC delegation and obligation to keep KYC information current.

Applies the account appropriateness obligation to specific situations.

Applies advantages and disadvantages of account types to client requirements.

• ✓Advisory (non-managed) account – fee-based and commission-based
• ✓Managed account
• ✓Discretionary account
• ✓Cash account vs. margin account

Covers documentation tied to account opening and the information collected relative to the dealer's model.

• ✓Investment Dealer's business model
• ✓Relationship with clients
• ✓Investment products and services offered by the Investment Dealer
• ✓Conditions for when to collect one set of KYC information for multiple accounts

Covers the purpose of documents included in the Investment Dealer's Welcome Package.

• ✓Fee schedule
• ✓CIRO brochures (Complaints Brochure, How CIRO protects investors, Opening an Investment Account)
• ✓Canadian Investor Protection Fund
• ✓Derivative Risk Disclosure
• ✓Investment Dealer conflict of interest disclosures
• ✓Investment Dealer complaint handling procedures

Covers obligations of the Registered Representative and Dealer when instructions are unsolicited or unsuitable.

Analyzes Dealer and regulatory requirements for monitoring accounts and triggering events.

Applies regulatory requirements for managing conflicts of interest to specific situations.

• ✓Identifying
• ✓Avoiding
• ✓Addressing
• ✓Disclosure

Applies CIRO standards of conduct to situations involving a Registered Representative and their client or firm.

The blueprint explains that the exam follows the CIRO Proficiency Model, under which all tested information is freely available on websites, in regulatory rule books and in national or regional laws.

• ✓CIRO does not produce a consolidated study book
• ✓Sample study resources are listed later in the document
• ✓Materials listed are suggestions, not endorsements or accredited

Candidates may choose to self-study or use a preparatory course provider, and it is up to the candidate to select the best study journey for their learning style, time and experience.

• ✓CIRO does not guarantee passing using these methods
• ✓Refer to CIRO information if resources conflict with it

The CIRO Proficiency Model aims to allow open access to competency exams, with all tested information freely available on websites, in regulatory rule books and in national or regional laws.

• ✓CIRO does not produce a consolidated study book for the competency exams
• ✓A sample of relevant study resources is listed in this guide

Candidates may choose to self-study or use a preparatory course provider, selecting the study journey that best fits their learning style, time commitment and experience.

• ✓CIRO does not guarantee passing using any method
• ✓Listed resources are suggestions, not endorsements, and are not accredited or recognized by CIRO

If there is a discrepancy between CIRO-provided information and any external resource, candidates should defer to CIRO's information.

• ✓Refer to CIRO relevant rules, guidance and the syllabus in case of discrepancy

The starting point is the exam syllabus, which is the authoritative roadmap outlining topics and subtopics covered and prioritizing study time.

• ✓Syllabus is the authoritative list of what can be tested
• ✓You will not be tested on topics not explicitly in the syllabus
• ✓Being familiar with the syllabus matters even when using a provider

The blueprint outlines a strategic approach to studying using only the syllabus learning outcomes, structured into a series of steps.

• ✓Understand the scope
• ✓Create a study schedule
• ✓Identify key concepts
• ✓Use supplementary materials
• ✓Employ the practice exam
• ✓Use active learning techniques
• ✓Do regular self-assessment
• ✓Join study groups
• ✓Stay updated

Reviewing the list of learning outcomes to grasp the breadth and depth of exam content and organize related outcomes into a study plan.

• ✓Carefully review learning outcomes for breadth and depth
• ✓Understand question types indicated by the taxonomy (e.g. Remember or Understand)
• ✓Group similar or related outcomes together

Allocating study time across learning outcomes using question weighting to set realistic goals with review and practice.

• ✓Allocate specific times for each learning outcome
• ✓Use question weighting (e.g. one hour per question)
• ✓Set realistic goals allowing for review and practice

Pinpointing the key concepts and terms to master for each learning outcome and mapping out what is needed to know.

• ✓Identify key concepts and terms per outcome
• ✓Make a list of key points for quick reference
• ✓Create a mind map of key points

Deepening understanding through textbooks, online resources, industry publications and peers, including university course reading lists for non-regulatory content.

• ✓Use textbooks, online resources, industry publications and peers
• ✓University reading lists useful for non-regulatory financial markets content

Using the practice exam as a representative benchmark of exam readiness and pacing, informally at the start and formally when ready.

• ✓Practice exam represents type and breadth of competency exam questions
• ✓Avoid memorizing specific questions or taking it before self-study is done
• ✓Use informally at start, then formally when ready

Reinforcing understanding through active methods such as summarizing, mind maps, flash cards, peer discussion and teaching others.

• ✓Summarize information in your own words
• ✓Create mind maps and use flash cards
• ✓Teach material to someone else

Periodically testing understanding and retention on each learning outcome and adjusting the study plan toward weaker areas.

• ✓Periodically test yourself on each outcome
• ✓Use lists and mind maps to assess
• ✓Adjust study plan to focus on weaker areas

Considering study groups or online forums to discuss learning outcomes and share resources with fellow candidates.

• ✓Join study groups or online forums to discuss outcomes and share resources

Keeping abreast of updates or changes in the investment industry sector that might impact the exam.

• ✓Keep abreast of investment industry updates or changes affecting your exam