LICENSING &CERTIFICATION
One item from CIRO's practice exam
  1. 1. Know-your-client (KYC) & Suitability
  2. Calculators and Scratch Paper
  3. The Relationship the Rules Describe
  4. Clients Who Live Somewhere Else
  5. What KYC Has to Cover
  6. Tolerance, Capacity and Need
  7. Business Structures and Why They Change the Answer
  8. Writing It Down, and Having the Client Confirm It
  9. The Trusted Contact Person, and the Temporary Hold
  10. Who Owns KYC, and How Current It Has to Be
  11. What the Client File Holds
  12. Account Appropriateness
  13. The Account Types You Have to Compare
  14. What the Account-opening File Needs
  15. The Relationship Disclosure Document
  16. Keeping Confidential Information Contained
  17. The Welcome Package
  18. Product Due Diligence and Knowing the Product
  19. The Suitability Determination
  20. Unsolicited and Unsuitable Instructions
  21. Investment Actions
  22. Why Appropriateness and Suitability Are Separate Tests
  23. Monitoring, Triggering Events and Change
  24. Conflicts of Interest
  25. Outside Activities
  26. Personal Financial Dealings with Clients
  27. Standards of Conduct
  28. A Client, Worked End to End
  29. Twelve Ways to Lose Marks on This Element
  30. Fifteen Terms to Own
  31. One Item From CIRO's Practice Exam

Retail Securities • Chapter 1

Know-Your-Client (KYC) & suitability

One item from CIRO's practice exam

The exam's style is not a secret. CIRO publishes a practice exam, and the item below is reproduced word for word from it, with the item identifier CIRO assigns and the answer key CIRO publishes. Read it as a sample of how a real question is built: a client, a gap between what the client wants and what suits them, and four actions that differ by degree rather than by topic.

ITEM ID: RSEC_E_000028

An elderly client indicates a strong aversion to risk but requests exposure to cryptocurrency for its return potential. What is the most appropriate action for the Registered Representative to take?

OptionThe answer
AEducate the client on cryptocurrency, provide the necessary risk warning and receive a returned signed risk-disclosure document
BInform the client that it is not suitable, recommend a suitable product and receive recorded confirmation of any instruction to act
CDiscuss the choice with the client, review the existing assets in the portfolio and assess how the portfolio will be affected by the action
DChallenge the risk aversion given the client request, ask if they want a new risk assessment and follow up with regular meetings

Correct answer: B The whole sequence in one move: tell, offer, record.

Source: CIRO, Retail Securities Exam Practice Exam, question 10, item RSEC_E_000028 (2025).

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