RSE Exam Study Guide (2026)
Everything the Retail Securities Exam (RSE) tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | 120 multiple-choice questions |
|---|---|
| Time | 3 hours |
| Passing score | Set by CIRO (the pass mark isn't published) |
| Format | Closed book, computer-based |
| Certifying body | CIRO (Canadian Investment Regulatory Organization), delivered by Fitch Learning |
| Test provider | Prometric test centres in Canada or Prometric remote proctoring |
Mind map: the whole exam on one screen
Read the complete RSE study notes for “Know Your Client and Suitability”
Our first full set of comprehensive notes, about 10 minutes of reading: What KYC must capture · Making the suitability determination · When the profile conflicts · Trigger events, a worked exam example, the traps examiners use and a one-minute recap. Create a free account to read it and see how premium notes work before you decide.
1. Know Your Client and Suitability
Turning KYC into suitable recommendations for retail clients (the biggest RSE topic).
Key facts
- Gather objectives, time horizon, risk profile, knowledge and financial circumstances.
- Risk profile combines willingness and capacity; the lower usually governs.
- Recommendations must be suitable and put the client's interest first.
- Consider costs, concentration, liquidity and reasonable alternatives.
- Document recommendations and any client instructions against advice.
Flashcards
Exam tip: Read the client profile first, then eliminate answers that clash with their time horizon or capacity.
2. Fixed-Income Products
Bonds, GICs and how rates affect them.
Key facts
- Bond prices fall when yields rise.
- Duration rises with maturity and falls with coupon size.
- GICs are deposits; CDIC covers eligible deposits up to C$100,000 per category.
- Credit ratings show default risk; high-yield bonds pay more for more risk.
- Laddering staggers maturities to manage rate risk.
Flashcards
Exam tip: CDIC protects deposits like GICs; CIPF protects assets at an insolvent dealer. Know which one fits.
3. Equity Products
Common and preferred shares and corporate actions.
Key facts
- Common shares offer growth and voting rights.
- Preferred shares pay fixed dividends with priority over common dividends.
- Stock splits change the number of shares, not the value.
- Stock dividends add shares instead of paying cash.
- Rights offerings let existing holders buy new shares at a discount.
Flashcards
Exam tip: Corporate actions rarely change a holding's total value on the day; watch for answers claiming they do.
Test yourself on these topics
Take the free 15-question RSE test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Managed Products: Mutual Funds and ETFs
Choosing between mutual funds, ETFs and managed solutions.
Key facts
- Mutual funds trade at NAVPS once a day; ETFs trade intraday.
- Index products usually have lower MERs than active funds.
Flashcards
Exam tip: Cost-conscious long-term client → low-MER index products is usually the best answer.
5. Derivatives and Structured Products
Options strategies and structured products for retail clients.
Key facts
- Covered calls earn premium but cap upside.
- Protective puts set a floor on losses.
Flashcards
Exam tip: Match the client's goal to the strategy: income → covered call; protection → protective put.
6. Portfolio Construction and Risk
Asset allocation, diversification and rebalancing.
Key facts
- Asset allocation drives most long-run portfolio variability.
- Strategic allocation sets targets; tactical allocation deviates temporarily.
Flashcards
Exam tip: Rebalancing is a discipline tool, not market timing.
7. Retirement, Tax and Registered Plans
RRSP, RRIF, TFSA, RESP, FHSA and RDSP, and investment tax.
Key facts
- RRSP: deductible contributions, taxable withdrawals; convert by the end of the year you turn 71.
- TFSA: no deduction, tax-free growth and withdrawals; room restored next year.
Flashcards
Exam tip: Expect high-income client → RRSP first; low-income or uncertain needs → TFSA first.
8. Account Types and Trading
Cash, margin, discretionary and managed accounts and order types.
Key facts
- Cash accounts need full payment by settlement.
- Margin accounts allow borrowing; a margin call follows a fall in equity.
Flashcards
Exam tip: JTWROS bypasses the estate; tenants in common doesn't.
9. Economics and Markets
The economic backdrop that drives investment returns.
Key facts
- The business cycle: expansion, peak, contraction, trough.
- Monetary policy (Bank of Canada) uses the overnight rate.
Flashcards
Exam tip: Currency questions: think about what the client's foreign investments are worth after converting back to CAD.
How to pass
- 120 questions in 3 hours is 90 seconds each, more time per question than the CIRE. Many are client scenarios, so use the time to read carefully.
- KYC and suitability is the biggest topic (about 23%). Practise matching products to a client's objectives, risk profile and time horizon.
- Know the registered plans cold: RRSP, RRIF, TFSA, RESP, FHSA and RDSP, including contribution rules and when each fits.
- Write the CIRE first. The RSE assumes you know the regulatory obligations and focuses on applying them to retail clients.
Frequently asked questions
How long should I study for the RSE exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Can I take the RSE exam online?
Yes. RSE can be written at a Prometric test centre in Canada or by Prometric remote proctoring. Format: closed book, computer-based. Check the current exam guide for the rules.
What score do I need to pass the RSE exam?
Set by CIRO (the pass mark isn't published). The exam has 120 multiple-choice questions and a time limit of 3 hours.
What are the most tested topics?
The outline covers know your client and suitability, fixed-income products, equity products, managed products: mutual funds and etfs, derivatives and structured products, portfolio construction and risk, retirement, tax and registered plans, account types and trading, economics and markets. Use the free practice test to see which ones you need most.
The premium RSE study path
Premium RSE prep is studied one topic at a time. Each step starts with that topic's key notes and flashcard deck, then its own question sets of 25, so you master one topic before you move to the next. When every topic is strong, the 6 full mock exams show you're ready.
Your step-by-step study path
- 1Know Your Client and Suitability7 key notes, 90 flashcards, then 350 practice questions in 14 sets of 25Notes free with an account
- 2Fixed-Income Products7 key notes, 90 flashcards, then 350 practice questions in 14 sets of 25Premium
- 3Equity Products7 key notes, 90 flashcards, then 350 practice questions in 14 sets of 25Premium
- 4Managed Products: Mutual Funds and ETFs7 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25Premium
- 5Derivatives and Structured Products7 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25Premium
- 6Portfolio Construction and Risk7 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25Premium
- 7Retirement, Tax and Registered Plans6 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25Premium
- 8Account Types and Trading6 key notes, 85 flashcards, then 325 practice questions in 13 sets of 25Premium
- 9Economics and Markets6 key notes, 85 flashcards, then 325 practice questions in 13 sets of 25Premium
- Final step: 6 full mock exams120 questions each, timed like test day. Pass them, then book your exam.Premium
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Summarized from CSI's and CIRO's official candidate information and the rules cited, checked October 2026. Confirm current requirements with CIRO (Canadian Investment Regulatory Organization), delivered by Fitch Learning.