Should I use a preparatory provider or self-study? +3CIRO · Securities · English

The blueprint weighs the advantages and disadvantages of using a good preparatory provider to prepare for the exam.

• ✓Pros: structured learning, expert guidance, comprehensive resources, practice exams, peer interaction, time efficiency
• ✓Cons: cost, less flexibility, dependency

The blueprint weighs the advantages and disadvantages of self-study as an approach to exam preparation.

• ✓Pros: cost-effective, flexibility, personalized learning, self-reliance, accessible
• ✓Cons: self-discipline required, time-consuming, limited guidance, potential gaps

Benefits of a prep provider including structured learning, expert guidance, comprehensive resources, practice exams, peer interaction and time efficiency.

• ✓Structured learning to stay on track
• ✓Expert guidance from experienced instructors
• ✓Comprehensive resources tailored to the exam
• ✓Practice exams mirroring the test
• ✓Peer interaction via study groups, forums or classes
• ✓Time efficiency in organizing study

Drawbacks of prep providers including cost, less flexibility and potential dependency.

• ✓Cost can be significant
• ✓Less flexibility due to set schedules
• ✓Dependency may limit independent study skills

Benefits of self-study including cost-effectiveness, flexibility, personalized learning, self-reliance and accessible public resources.

• ✓Cost-effective using free or low-cost resources
• ✓Flexibility to study at your own pace
• ✓Personalized learning focused on weak areas
• ✓Self-reliance and critical thinking
• ✓All tested resources are publicly accessible

Drawbacks of self-study including required self-discipline, time demands, limited guidance and potential coverage gaps.

• ✓Self-discipline and motivation required
• ✓Time-consuming to gather materials and plan
• ✓Limited expert guidance for complex concepts
• ✓Potential gaps without a structured plan

Some tested content relates directly to CIRO rules governing Investment Dealers; the blueprint identifies specific IDPC rule sections candidates should be familiar with.

• ✓Rule 1100 – Interpretation
• ✓Rule 1200 – Definitions
• ✓Rule 1400 – Standards of conduct
• ✓Rule 2600 – Proficiency requirements and exemptions from proficiencies
• ✓Rule 2700 – Continuing education requirements for Approved Persons
• ✓Rule 3000 – Business conduct and client account rules
• ✓Rule 5100 – Margin requirements – application and definitions
• ✓Rule 7100 – Debt markets

The blueprint identifies specific parts of the Universal Market Integrity Rules provided by CIRO that candidates should be particularly familiar with.

• ✓Part 2 – Abusive trading
• ✓Part 4 – Frontrunning
• ✓Part 5 – Best execution obligation
• ✓Part 7 – Trading in a marketplace
• ✓Part 10 – Gatekeeper obligations

Some tested content relates directly to CIRO rules governing Investment Dealers, with candidates expected to be familiar with specified IDPC rule sections.

• ✓Rule 1100 – Interpretation
• ✓Rule 1200 – Definitions
• ✓Rule 1400 – Standards of conduct
• ✓Rule 2600 – Proficiency requirements and exemptions from proficiencies
• ✓Rule 2700 – Continuing education requirements for Approved Persons
• ✓Rule 3000 – Business conduct and client account rules
• ✓Rule 5100 – Margin requirements – application and definitions
• ✓Rule 7100 – Debt markets

The exam covers the purpose, general requirements and implications of breaching the Proceeds of Crime (Money Laundering) and Terrorism Financing Act and its regulations, recorded on the FINTRAC site.

• ✓Focus on purpose, general requirements and implications of breach
• ✓PCMLTF Regulations

The blueprint notes that specific National Instruments found on the Canadian Securities Administrators website are referenced in the syllabus.

• ✓NI 41-101 General Prospectus Requirements
• ✓NI 45-106 Prospectus Exemptions

Although specific accounting regulations will not be tested, the blueprint states that familiarity with accounting terminology under International Financial Reporting Standards is required.

The blueprint lists governmental and regulatory bodies whose resources are relevant to understanding the regulatory environment and legislation governing the Canadian investment industry.

• ✓Government of Canada (Canada.ca)
• ✓Office of the Superintendent of Financial Institutions (OSFI)
• ✓Canadian Securities Administrators (CSA)
• ✓Financial Consumer Agency of Canada (FCAC)
• ✓Bank of Canada
• ✓Canadian Investment Regulatory Organization (CIRO)

The exam addresses the purpose, general requirements and implications of breaching anti-money laundering and terrorist financing legislation recorded on the FINTRAC site.

• ✓Proceeds of Crime (Money Laundering) and Terrorism Financing Act (PCMLTFA)
• ✓PCMLTF Regulations
• ✓Recorded on the FINTRAC site

While specific accounting regulations will not be tested, familiarity with accounting terminology under International Financial Reporting Standards is required.

• ✓Accounting terminology under IFRS is required
• ✓Specific accounting regulations will not be tested

Covers the various types of managed products available.

• ✓Mutual fund trusts
• ✓Mutual fund corporations
• ✓Income trusts
• ✓Closed-end funds
• ✓Real estate investment trusts (REITs)
• ✓Exchange-traded funds (ETFs)
• ✓Wrap funds/fund of funds/ETF wrap
• ✓Pooled funds

Covers analysis of main considerations affecting investors in managed products.

• ✓Range of exposures available (income and growth, asset classes, sectors, geography, ethical and ESG, diversification/concentration)
• ✓Advantages and disadvantages of managed products

Covers the main features of mutual funds.

• ✓Access to mutual funds in Canada
• ✓Structure (trust vs. corporate)
• ✓Participants – trustee, manager, distributor, custodian
• ✓Fee structures
• ✓Daily pricing

Covers analysis of main considerations affecting investors in mutual funds.

• ✓Advantages and disadvantages to the investor
• ✓Advantages and disadvantages to the provider
• ✓Source of risks and potential returns, including risk-ranking methodologies

Covers analysis of main considerations affecting investors in ETFs.

• ✓Access to ETFs
• ✓Creation
• ✓Pricing: market price vs. net asset value (NAV)
• ✓ETF management styles
• ✓The use of leverage
• ✓Advantages and disadvantages of ETFs over mutual funds
• ✓Cost structures

Covers features and purpose of fund management styles.

• ✓Active and passive management
• ✓Smart beta/factor investing
• ✓Leveraged funds
• ✓Inverse funds

Covers information sources on managed products, including fund facts and ETF fact sheets.

Covers typical criteria for evaluating a fund's performance.

• ✓Measuring return (holding period, money-weighted, time-weighted rate of return)
• ✓Comparing return (benchmark, peer group)

Covers application of valuation methods for managed funds, including calculations.

• ✓Pricing of mutual fund units or shares, including NAVPS
• ✓Measurement and comparisons of fund performance
• ✓Standard performance data and total return
• ✓Use of comparisons and appropriate benchmarks (specified in advance, appropriate, measurable, unambiguous, reflective, accountable, investable)

Covers the impact of costs on the performance of managed products.

• ✓Loads and charges
• ✓Turnover
• ✓Taxes (on the fund, on the investor, withholding tax, recoverable, unrecoverable)
• ✓Assessing expense ratios (management expense ratio, trading expense ratio)

Covers analysis of the implications of redemptions.

• ✓Tax consequences (T-swps)
• ✓Withdrawal plans
• ✓Suspension of redemptions – Gating

Covers factors to consider when deciding between managed and non-managed products.

• ✓The investor's decisions
• ✓The Registered Representative's recommendation

Covers the types of alternative strategy funds and alternative assets.

• ✓Hedge funds
• ✓Structured products
• ✓Alternative investment funds
• ✓Crypto-assets
• ✓Private equity
• ✓Venture capital

Covers analysis of alternative strategy funds and other investment types.

• ✓Structure
• ✓Features
• ✓Fees: management, performance, hurdle rates
• ✓Advantages and disadvantages to the investor and provider
• ✓Source of risks and potential returns
• ✓Impact of costs associated with acquiring and holding other investments
• ✓Accredited investor requirement

Analyzes considerations affecting investors in managed products.

• ✓Range of exposures available – income and growth, asset classes, sectors, geography, ethical and ESG, diversification/concentration
• ✓Advantages and disadvantages of managed products

Analyzes considerations affecting investors in mutual funds.

• ✓Advantages and disadvantages to the investor
• ✓Advantages and disadvantages to the provider
• ✓Source of risks and potential returns, including risk-ranking methodologies

Analyzes considerations affecting investors in ETFs.

• ✓Access to ETFs
• ✓Creation
• ✓Pricing: market price vs. net asset value (NAV)
• ✓ETF management styles
• ✓The use of leverage
• ✓Advantages and disadvantages of ETFs over mutual funds
• ✓Cost structures

Covers different fund management styles and their purposes.

• ✓Active and passive management
• ✓Smart beta/factor investing
• ✓Leveraged funds
• ✓Inverse funds

Covers typical criteria for evaluating fund performance.

• ✓Measuring return – holding period, money-weighted, time-weighted rate of return
• ✓Comparing return – benchmark, peer group

Covers how costs affect managed product performance.

• ✓Loads and charges
• ✓Turnover
• ✓Taxes – on the fund, on the investor, withholding tax (recoverable and unrecoverable)
• ✓Assessing expense ratios – management expense ratio, trading expense ratio

Covers alternative strategy funds and alternative assets.

• ✓Hedge funds
• ✓Structured products
• ✓Alternative investment funds
• ✓Crypto-assets
• ✓Private equity
• ✓Venture capital

Covers the process and principles of asset allocation in portfolio construction.

• ✓Principles of portfolio construction
• ✓Categories, process and importance of asset allocation
• ✓Types and key aspects of asset allocation (tactical, strategic, rebalancing)
• ✓Asset mix categories and strategies for setting the asset mix
• ✓Benefits of different stock selection techniques
• ✓Benefits of a rebalancing strategy
• ✓Costs of implementation and rebalancing (spread, commission, time)

Covers the different types of risk affecting portfolios.

• ✓Interest rate risk
• ✓Inflation risk
• ✓Liquidity risk
• ✓Capital risk
• ✓Income risk
• ✓Issuer risk
• ✓Financial crime risk

Covers what different measures of risk indicate about an asset or portfolio.

• ✓Standard deviation and variance
• ✓Beta
• ✓Multi-factor
• ✓Drawdown

Covers applying risk management processes to deal with risk and return.

• ✓The role of risk in asset selection
• ✓Hedging and diversification
• ✓Factors that affect the expected return and risk of a portfolio

Covers applying risk management processes to short selling.

• ✓The process of short selling and the risks associated
• ✓Margin requirements for long and short positions

Covers concepts underlying portfolio recommendations.

• ✓Modern portfolio theory/mean variance theory
• ✓Efficient diversification, naïve diversification and industry or issuer concentration
• ✓Black–Litterman model
• ✓Monte Carlo Simulation

Covers the purpose, advantages and disadvantages of asset pricing models.

• ✓Capital asset pricing model
• ✓Arbitrage pricing theory
• ✓Multi-factor models (Fama–French five-factor, Fama–French five-factor + momentum, Carhart four-factor)

Covers applying CAPM to calculate expected return and risk on a portfolio or asset.

Covers the implications of the efficient markets hypothesis on portfolio management.

Covers analysis of active portfolio management techniques for equity managers.

• ✓Top–down vs. bottom–up
• ✓Sector rotation
• ✓Growth investing
• ✓Value investing
• ✓Market timing

Covers analysis of passive portfolio management techniques for equity managers.

• ✓Buy and hold
• ✓Tracking/indexing

Covers passive and active fixed-income portfolio management techniques.

• ✓Passive buy and hold
• ✓Index matching
• ✓Immunization
• ✓Duration management
• ✓Bond swaps
• ✓Sector rotation

Applies risk management methods to short selling.

• ✓The process of short selling and the risks associated
• ✓Margin requirements for long and short positions

Covers the advantages and disadvantages of asset pricing models.

• ✓Capital asset pricing model
• ✓Arbitrage pricing theory
• ✓Multi-factor models – Fama–French five-factor, Fama–French five-factor + momentum, Carhart four-factor

Covers the implications of the EMH on portfolio management.

Analyzes active equity portfolio management techniques.

• ✓Top–down vs. bottom–up
• ✓Sector rotation
• ✓Growth investing
• ✓Value investing
• ✓Market timing

Analyzes passive equity portfolio management techniques.

• ✓Buy and hold
• ✓Tracking/indexing