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2026 Statistics

Key Facts: CIRO Supervisor Exam

100

Total Questions

CIRO Portal

3 hours

Exam Duration

CIRO Portal

60%

Passing Score

CIRO Rules

CAD $475

Exam Fee

CIRO 2026 Fees

3 years

Proficiency Validity

CIRO Rule 2600

Online/In-person

Testing Format

Prometric/Pearson

The CIRO Supervisor Exam is the mandatory proficiency standard for branch managers and compliance supervisors. It features 100 questions, has a 3-hour limit, and requires a 60% score to pass.

Sample CIRO Supervisor Practice Questions

Try these sample questions to test your CIRO Supervisor exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Canadian Investment Regulatory Organization (CIRO) rules, which of the following statements is correct regarding the delegation of supervisory duties by a Branch Manager?

A.The Branch Manager may delegate the task of daily trade log review to a registered supervisor, but the Branch Manager retains ultimate regulatory accountability for branch supervision.

B.The Branch Manager may delegate both the daily trade log review tasks and the ultimate regulatory accountability to any registered representative with at least two years of experience.

C.The Branch Manager cannot delegate any daily supervisory tasks, and all trade log reviews must be conducted personally by the Branch Manager.

D.Delegation of supervisory tasks is only permitted if the Chief Compliance Officer (CCO) signs off on each individual delegated transaction.

Explanation: Under CIRO IDPC Rules, a Branch Manager is permitted to delegate daily supervisory tasks (such as daily trade reviews) to a qualified, registered Supervisor. However, the Branch Manager cannot delegate their ultimate regulatory accountability and remains responsible for ensuring the branch is supervised properly.

2When a CIRO Dealer Member opens a new business location (sub-branch), what is the regulatory requirement for notifying CIRO?

A.The Dealer Member must notify CIRO by updating the National Registration Database (NRD) within 15 days of the opening.

B.The Dealer Member must obtain prior written approval from CIRO at least 30 days before any trading activity occurs at the new location.

C.No notification is required for sub-branches as long as they are supervised by an existing registered Branch Manager.

D.The Dealer Member must submit a physical application form to CIRO within 5 business days of opening, and the location cannot trade until a physical audit is completed.

Explanation: Under National Instrument 33-109 (section 3.2), a registered firm must notify the regulator of the opening of a business location (other than a new head office) by submitting a completed Form 33-109F3 via the NRD within 15 days of the opening. This applies to sub-branches and home offices where registrable activity occurs.

3Which of the following is correct regarding the maintenance and accessibility of a Dealer Member's Policies and Procedures Manual (PPM)?

A.The PPM must be kept current and made readily accessible to all registered individuals at all business locations of the Dealer Member.

B.The PPM is a highly confidential document and must only be kept at the head office, accessible only to the CCO and Branch Managers.

C.The PPM only needs to be updated once every five years, regardless of changes in CIRO or provincial securities regulations.

D.Registered representatives are not required to have access to the PPM, as long as they receive verbal instructions from their supervisor.

Explanation: Dealer Members must maintain a current PPM that reflects all active regulations and firm policies. It must be accessible to all registered individuals (including IAs and supervisors) at every business location to ensure compliance.

4In the context of a Dealer Member's supervisory control framework, which of the following groups represents the 'First Line of Defense'?

A.Frontline supervisors, Branch Managers, and business unit management who directly oversee day-to-day operations and transactions.

B.The Chief Compliance Officer and the compliance department who monitor firm-wide compliance policies and perform testing.

C.Internal audit department personnel who conduct independent testing of control systems and report to the Audit Committee.

D.External auditors and provincial securities commission examiners who conduct annual audits.

Explanation: In a standard financial control framework, the First Line of Defense consists of operational management and frontline supervisors (including Branch Managers) who have direct ownership and responsibility for identifying and managing risks day-to-day.

5Under CIRO rules, which of the following events would automatically trigger a mandatory 'Close Supervision' (strict supervision) period for a registered representative?

A.The representative is a newly registered individual who has not previously been registered with a Dealer Member, or is subject to a disciplinary order requiring supervision.

B.The representative executes a single trade that triggers a concentration alert on the branch daily trade log.

C.The representative changes their residential address or opens a personal trading account at another Dealer Member.

D.The representative fails to complete their continuing education (CE) requirements within the first three months of a cycle.

Explanation: Close supervision is required for newly registered individuals (usually for the first 6 months of registration) or as a remedial requirement resulting from regulatory disciplinary proceedings or internal firm disciplinary actions.

6A Branch Manager wishes to delegate the task of daily trade log reviews to an assistant. Under CIRO rules, under what conditions is this delegation permitted?

A.The assistant must be approved and registered as a Supervisor, the delegation must be documented in writing, and the Branch Manager remains ultimately responsible.

B.The assistant must have at least one year of administrative experience at the branch, and no NRD registration or supervisor approval is required.

C.The delegation is permitted without restriction, provided that the assistant only flags unusual trades and does not sign off on the log.

D.The assistant must be a registered representative under close supervision, and the delegation must be approved verbally by the CCO.

Explanation: Delegation of daily supervisory reviews is permitted only if the delegee is qualified and registered with CIRO as a Supervisor. The delegation must be in writing, and the Branch Manager retains ultimate regulatory responsibility for the branch.

7An Investment Advisor (IA) is approved to work from a home office as their primary business location. What is the supervisor's obligation regarding the supervision of this home office?

A.The supervisor must ensure the home office is registered as a business location, include it in the branch supervisory program, and conduct periodic reviews or audits of the location.

B.The supervisor has no obligation to monitor home offices, as they are considered private residential premises exempt from CIRO jurisdiction.

C.The supervisor must install video surveillance in the IA's home office to monitor all activities in real-time.

D.The supervisor is only required to review the IA's trades once a year, and no record-keeping is required for home office communications.

Explanation: A home office where registrable activity occurs is a business location under CIRO rules. It must be registered via NRD, and the Branch Manager or supervisor must oversee it, including conducting periodic audits or reviews of the home office's business practices.

8When an Investment Advisor is placed under 'Close Supervision' due to an internal compliance infraction, which of the following details the minimum trade review requirement?

A.The supervisor must pre-clear or review on a daily basis all trades executed by the representative, and submit a monthly report to the compliance department.

B.The supervisor must review a random sampling of 10% of the representative's trades at the end of each calendar month.

C.The supervisor is only required to review trades that exceed $50,000 in market value.

D.The supervisor must personally execute all trades on behalf of the representative's clients, and the representative's trading access is completely suspended.

Explanation: Under close supervision, the firm must implement enhanced trade monitoring, which typically involves daily review of all trades executed by the representative (or pre-clearance of trades) and the compilation of monthly compliance reports.

9An Investment Advisor wants to engage in an Outside Business Activity (OBA) as a director of a local non-profit charity. What is the role of the supervisor in this process?

A.Ensure the IA submits a written request, evaluate if a conflict of interest exists, obtain Dealer Member approval, and ensure NRD is updated within 30 days.

B.Verbally approve the request immediately, as non-profit directorships are completely exempt from NRD reporting and supervisor review.

C.Instruct the IA to resign from the Dealer Member, as registered individuals are strictly prohibited from participating in any outside activities.

D.Approve the request only if the charity agrees to open all its corporate and investment accounts with the supervisor's branch.

Explanation: All outside business activities (including non-profit boards) must be disclosed to and approved by the Dealer Member. The supervisor must review for potential conflicts of interest, and the firm must update NRD within 30 days of the activity's start.

10In a Dealer Member's organizational structure, which of the following functions represents the 'Second Line of Defense' within the control framework?

A.The independent Compliance and Risk Management departments that establish compliance policies and monitor first-line activities.

B.The internal audit department that provides independent assurance to the board.

C.The Branch Managers who approve new accounts and conduct daily trade log reviews.

D.The Investment Advisors who execute trades and collect client KYC information.

Explanation: The Second Line of Defense is composed of compliance, risk management, and legal functions. They establish policies, provide guidance, and monitor compliance but do not directly own the operational risks (which are owned by the First Line).

About the CIRO Supervisor Exam

The CIRO Supervisor Exam is a core requirement for professionals seeking approval as a Branch Manager, Co-Branch Manager, or designated Supervisor at a CIRO Dealer Member. Developed and administered by the Canadian Investment Regulatory Organization, the exam is a 3-hour computer-based test comprising 100 multiple-choice questions with a passing grade of 60%. The curriculum is highly practical and scenario-oriented, testing a candidate's ability to apply the CIRO Investment Dealer and Partially Consolidated (IDPC) Rules. Key areas evaluated include the supervisory control framework, new account opening reviews (including Client Focused Reforms, KYC, and AML/ATF requirements), daily and monthly trade surveillance logs, retail options and futures account supervision (including derivative margins and risk disclosures), review of sales communications and advertising, and compliant handling of client disputes. Passing this exam demonstrates the proficiency required to effectively manage branch operations and protect client interests under Canadian securities regulations.

Assessment

Computer-based multiple-choice exam (100 questions)

Time Limit

3 hours

Passing Score

60%

Exam Fee

$475 CAD (Canadian Investment Regulatory Organization (CIRO))

CIRO Supervisor Exam Content Outline

15%

Branch Supervision & Control Framework

Role of the supervisor, delegation of authority, supervisory liability, policies and procedures manual (PPM), and business locations oversight.

20%

New Account Opening Reviews

Account documentation, Know-Your-Client (KYC) details, suitability standards, discretionary/managed account onboarding, AML/ATF compliance, and Trusted Contact Person (TCP) procedures.

25%

Daily & Monthly Trade Reviews

Review of daily and monthly trade logs, suitability alerts, pro-trade (employee/IA) trading, insider/significant shareholder trading, concentration limits, and market integrity (UMIR) compliance.

20%

Retail Options & Futures Account Supervision

Supervising options and futures accounts, option/futures trading agreements, risk disclosures, margin requirements (long/short, spreads, covered positions), and assignment/exercise rules.

10%

Communications Review

Supervising and approving advertising, sales literature, social media, research reports, and client correspondence under CIRO Rule 3600.

10%

Complaint Handling

Written complaint handling procedures, timeline compliance (5-day acknowledgment, 90-day resolution), dispute resolution, and regulatory reporting via ComSet.

How to Pass the CIRO Supervisor Exam

What You Need to Know

Passing score: 60%
Assessment: Computer-based multiple-choice exam (100 questions)
Time limit: 3 hours
Exam fee: $475 CAD

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CIRO Supervisor Study Tips from Top Performers

1Understand the delegation rules: A Branch Manager can delegate the task of daily trade reviews to an experienced supervisor, but the Branch Manager retains ultimate regulatory accountability for the supervision of the branch.

2Memorize key complaint handling timelines: You must acknowledge a client's written complaint in writing within 5 business days and provide a final, substantive response (including details about the OBSI) within 90 calendar days.

3Understand options margins: Learn how to calculate the minimum margin for unhedged short options (premium + 30% of underlying stock value, minus out-of-the-money amount, subject to a minimum of premium + 5% of underlying stock price/strike price). Also, know the 15% rate for qualifying/reduced-margin underlying stocks.

4Review Client Focused Reforms (CFR): Focus on the enhanced suitability triggers, conflicts of interest priorities, and Know-Your-Product (KYP) obligations of Dealer Members.

5Distinguish between Discretionary and Managed accounts: A discretionary account has temporary authority (up to 12 months, non-renewable) to execute trades while the client is unavailable, whereas a managed account is managed continuously by an approved Portfolio Manager and requires a written managed account agreement.

Frequently Asked Questions

What is the fee for the CIRO Supervisor Exam?

The exam registration fee is $475 CAD plus applicable provincial taxes.

How long is the exam and what is the passing grade?

The exam is 3 hours long, contains 100 multiple-choice questions, and requires a score of 60% or higher to pass.

Who needs to write the CIRO Supervisor Exam?

Individuals seeking registration or approval as a Branch Manager, Associate Branch Manager, or designated Supervisor responsible for supervising retail client accounts and sales personnel at a CIRO Dealer Member must pass this exam.

How long is my exam score valid for registration?

Once you pass the exam, you must seek approval with a Dealer Member within 36 months (3 years) of passing. Otherwise, your exam proficiency will expire, and you may need to rewrite the exam, unless an exemption is granted based on active industry experience.

Does this exam cover options and futures supervision?

Yes, approximately 20% of the exam covers options and futures account supervision, including options/futures account approvals, trading agreements, risk disclosure statements, and margin calculations.

100+ Free CIRO Supervisor Practice Questions

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