IDPC Rules

Test yourself

Two real CIRE-bank questions on this exact outcome. Click to reveal the answer and the rule citation.

1. 1

   CIRO was formed in January 2023 through the amalgamation of two self-regulatory organizations. Which statement best describes CIRO's current regulatory mandate?

   Outcome 1.1 · click for answer

   A.CIRO is a provincial agency under Ontario law, holding delegated authority from the OSC alone

   B.CIRO is a national SRO overseeing investment dealers, mutual fund dealers, and market integrityCorrect

   C.CIRO is a Crown corporation reporting to the Bank of Canada, setting monetary policy for dealers

   D.CIRO replaced the CSA and now drafts National Instruments directly without provincial input

   CIRO was created by the merger of IIROC and the MFDA and functions as Canada's single national SRO, overseeing both investment dealers and mutual fund dealers as well as market integrity functions previously held by IIROC. It operates under oversight of provincial and territorial securities commissions, not as a government body or replacement for the CSA. CIRO does not draft National Instruments independently.

2. 2

   A client asks her registrant whether the Canadian Securities Administrators (CSA) can directly revoke a registrant's approval. Which statement best describes the CSA's relationship to individual registrations?

   Outcome 1.1 · click for answer

   A.The CSA acts as sole enforcer nationally, so provincial regulators no longer issue their own rulings

   B.The CSA is a forum of provincial regulators, who each keep authority to register and revoke locallyCorrect

   C.The CSA hands registration authority to CIRO, which revokes approvals on the provinces' behalf

   D.The CSA operates as one federal regulator empowered to revoke any registrant's approval directly

   The CSA is not a statutory body but a collegial forum of the 13 provincial and territorial securities regulators. Each member regulator retains its own jurisdiction, including the power to grant and revoke registrations. The CSA develops harmonized policy through National Instruments and Multilateral Instruments, which member jurisdictions adopt through their own legislative processes. CIRO operates as an SRO under those regulators, not as their agent for registration decisions.

Related terms in Regulatory

• CIRO

  The Canadian Investment Regulatory Organization, formed January 1, 2023.

• CIRE

  Canadian Investment Regulatory Examination, the entry-level CIRO exam.

• CSA (Canadian Securities Administrators)

  Umbrella organisation of Canada's 13 provincial/territorial securities regulators.

• Canadian Investor Protection Fund (CIPF)

  Investor protection fund covering client assets at CIRO investment dealers up to $1 million per account category.

• NI 31-103

  National Instrument on Registration Requirements, Exemptions and Ongoing Registrant Obligations.

• Ontario Securities Commission (OSC)

  Ontario's provincial securities regulator and the largest CSA member by market participants.