Use this syllabus as your coverage checklist for IDSC. Topic weightings and exam structure are from CSI’s official Exam & Credits page; chapter mapping follows the official Curriculum page.
What’s covered
Supervision Requirements and Skills (19%)
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Chapter 1 - The Role of the Supervisor
- Define supervision in the investment dealer context and explain why it is essential to investor protection and market integrity.
- Describe the objectives of supervision and how they connect to firm policies, CIRO rules, and internal controls.
- Differentiate proactive supervision (prevention) from reactive supervision (detection and remediation).
- Identify the supervisor’s responsibilities in setting expectations, monitoring activity, and escalating issues.
- Explain how supervision supports ethical conduct and reduces conflicts of interest and misconduct risk.
- Recognize behaviours that undermine supervision effectiveness (inconsistent enforcement, weak documentation, informal exceptions).
- Describe how supervision evidence should be recorded (what was reviewed, findings, and follow-up actions).
- Identify common supervision triggers that require immediate action (client harm, potential fraud, AML red flags, serious complaints).
- Describe the relationship between supervision and suitability/KYC obligations at a high level.
- Explain why a risk-based approach helps supervisors prioritize high-impact activities and clients.
- Given a scenario, identify the most appropriate first supervisory action (document, review, escalate, or restrict).
- Describe how supervisors balance coaching and enforcement to build a culture of compliance.
- Identify common supervisory metrics used to monitor representative activity (exceptions, complaints, concentration, leverage).
- Explain how effective supervision reduces operational risk and improves audit and regulatory exam outcomes.
- Recognize the importance of confidentiality and privacy discipline when supervising client files and communications.
Chapter 2 - Supervision Structures
- Describe general supervision requirements and how they translate into documented policies and procedures.
- Explain why supervision structure must be clear (who supervises what, when, and using which reports).
- Define the concept of designated supervisors and identify why delegated supervision still requires accountability.
- Differentiate supervision of accounts versus supervision of specific activity areas (account opening, trading, marketing, complaints).
- Identify typical supervisory roles in a dealer member organization (branch supervisors, compliance, operations) at a high level.
- Explain the “gatekeeper for the public” concept and how supervision protects clients and market confidence.
- Identify best practices for designing a supervision program (risk-based coverage, documented checklists, and follow-up loops).
- Describe escalation paths and when issues should be routed to compliance, legal, or senior management.
- Recognize how segregation of duties and approvals strengthen supervision controls.
- Describe how supervision expectations can vary by business line (retail versus institutional) at a high level.
- Given a scenario, select an appropriate supervision structure change to address repeated deficiencies.
- Describe how supervisory review frequency and depth should reflect client risk, product complexity, and representative history.
- Identify documentation artifacts that demonstrate supervision occurred (review logs, exception closures, and approvals).
- Explain why supervisors must manage conflicts and incentives that could impair oversight.
- Recognize common structural failures (unclear roles, missing reports, no remediation tracking) and their consequences.
Chapter 3 - Supervision Skills
- Describe leadership and management skills that improve supervision outcomes (clarity, consistency, and accountability).
- Identify coaching techniques that correct behaviour while reinforcing compliance expectations.
- Describe how to deliver feedback using evidence (facts, rule/policy, impact, and next steps).
- Explain how to manage performance problems and when to escalate to formal disciplinary processes.
- Describe change management concepts relevant to supervision (communicating change, training, and adoption monitoring).
- Recognize common sources of resistance to change and how supervisors can address them.
- Describe how ethical decision-making frameworks support supervisory judgment in ambiguous situations.
- Given a scenario, apply an ethical decision process to choose the most defensible supervisory action.
- Explain how supervisors create a “speak up” environment that surfaces issues early.
- Identify communication practices that reduce misunderstandings and improve documentation quality.
- Describe how to run effective supervision meetings (agenda, actions, owners, and follow-up).
- Recognize how emotional bias and conflicts can affect supervisory decisions and how to mitigate them.
- Describe how training plans are built, delivered, and tracked to address supervision gaps.
- Explain how supervisors should respond to repeated mistakes (root cause, control adjustment, training, monitoring).
- Identify techniques for prioritizing workload under time pressure without missing high-risk issues.
Rules, Responsibilities, and Risk Management (24%)
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Chapter 4 - The Canadian Regulatory Framework
- Describe the general principles of securities regulation in Canada at a high level (investor protection and market integrity).
- Identify key government and regulatory players involved in securities regulation and how they interact (conceptual).
- Describe the role of self-regulatory organizations (such as CIRO) in supervision, rule-making, and enforcement.
- Explain why dealer member policies and procedures must align with regulatory expectations and be auditable.
- Describe money laundering and terrorist financing risks in the investment industry at a high level.
- Recognize common AML/ATF red flags relevant to dealer supervision and escalation expectations.
- Describe the supervisor’s role in supporting AML controls (escalation discipline, documentation, and monitoring).
- Explain civil and common law obligations and liabilities at a high level and why documentation reduces exposure.
- Differentiate regulatory enforcement exposure from civil liability exposure conceptually.
- Identify common areas where supervision failures create regulatory exposure (missing KYC, unsuitable trades, misleading communications).
- Given a scenario, determine the appropriate escalation route for a potential regulatory infraction.
- Describe how privacy and confidentiality expectations apply to supervision and recordkeeping (conceptual).
- Recognize why “reasonable supervision” is evaluated through evidence of reviews and remediation.
- Explain how regulatory examinations assess supervision programs (coverage, exceptions, and closure discipline).
- Identify the consequences of non-compliance for firms and individuals (sanctions, restrictions, reputational harm).
Chapter 5 - The Gatekeeper's Responsibilities
- Describe the gatekeeper’s traditional role in the securities industry and why it exists.
- Identify who acts as the gatekeeper in a dealer member context (firm, supervisors, compliance) at a high level.
- Explain why the gatekeeper role is important to public trust and market integrity.
- Describe gatekeeper obligations at a high level (KYC, suitability, conflicts management, fair dealing, and escalation).
- Recognize how gatekeeper obligations apply across the client lifecycle (onboarding, trading, monitoring, complaints).
- Describe supervision implications for CIRO dealer members (policies, controls, supervision evidence, and escalation).
- Given a scenario, identify when a supervisor must act as a gatekeeper by restricting or stopping activity.
- Describe how gatekeeping interacts with business goals (profitability) and why incentives must not override controls.
- Identify common gatekeeper failure patterns (rubber-stamping, weak challenge, missing follow-up).
- Explain why documentation is a core gatekeeper tool (defensible decisions and audit trails).
- Describe how supervisors should respond to suspected misconduct (containment, evidence preservation, escalation).
- Recognize the importance of consistent enforcement to prevent “policy drift” and normalization of deviance.
- Identify the types of issues that require immediate escalation beyond the branch (serious complaints, suspected fraud, AML).
- Explain how training and supervision reinforce gatekeeper effectiveness over time.
- Describe how gatekeeping reduces downstream complaint and investigation risk.
Chapter 6 - Risk Management
- Describe the principles of risk management and why supervisors apply them in day-to-day oversight.
- Identify key types of risk relevant to dealer supervision (market, credit, liquidity, operational, compliance, reputational).
- Explain how risk assessment supports prioritization of supervision reviews and control testing.
- Describe common risk assessment inputs (exceptions, incidents, complaints, audit findings, and trend metrics).
- Explain how regulatory considerations shape risk management practices (policies, limits, reporting, and evidence).
- Describe how supervisors use risk limits, escalation thresholds, and approvals to control exposure.
- Recognize how product complexity increases risk and requires enhanced supervision.
- Describe risk analysis strategy development at a high level (identify risks, set controls, monitor, improve).
- Identify typical risk controls in a dealer environment (segregation of duties, reconciliations, surveillance, and approvals).
- Explain how control failures can translate into client harm, regulatory sanctions, and financial losses.
- Given a scenario, choose the best control improvement to address a stated risk (prevent/detect/correct).
- Describe how supervisors document risk decisions and remediation plans (owners, timelines, and follow-up testing).
- Explain why ongoing monitoring matters (risks evolve with markets, products, and technology).
- Recognize common risk management pitfalls (overreliance on checklists, ignoring early warnings, weak remediation tracking).
- Describe how supervisors communicate risk information upward (clear summaries, evidence, and recommended actions).
Chapter 8 - Conflicts of Interest and Disclosures
- Define conflicts of interest and explain why they are central to supervisor oversight.
- Identify fundamental types of conflicts of interest (firm-level, representative-level, and client-level) conceptually.
- Identify common advisor-client conflicts of interest and the behaviours they can create.
- Describe how conflicts are managed (identify, avoid, control, disclose) and what supervisors must evidence.
- Explain the purpose of conflict of interest disclosures and the importance of clear, timely disclosure.
- Recognize when disclosure alone may be insufficient and mitigation or avoidance is required (conceptual).
- Describe the supervisor’s role in reviewing disclosures and ensuring delivery evidence exists where required.
- Describe standards for marketing and advertising/sales communications (fair, balanced, not misleading).
- Identify risks in performance-related communications (cherry-picking, inconsistent periods, missing risk context).
- Recognize prohibited or unacceptable communication patterns and how supervisors should remediate them.
- Given a scenario, identify whether a conflict exists and what the appropriate supervisory response is.
- Describe documentation and recordkeeping expectations for conflicts and disclosures (audit trail discipline).
- Explain how incentives and compensation structures can create conflicts and why supervision must address them.
- Recognize how conflicts intersect with suitability decisions and client vulnerability (enhanced scrutiny).
- Describe how supervisors use training and pre-approval processes to reduce communication and disclosure failures.
Account Opening and Documentation (20%)
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Chapter 7 - Opening and Updating Client Accounts
- Describe the purpose of the account application and why it is a key control point for suitability and supervision.
- Identify high-level required information elements in account opening documentation (identity, objectives, constraints, and authority).
- Describe how supervisors validate account documentation completeness and accuracy (sampling, checklists, and follow-up).
- Explain why dealing with older and vulnerable clients requires enhanced care, documentation, and escalation readiness.
- Recognize common vulnerability indicators and how they can affect suitability and communication supervision.
- Identify types of accounts and clients at a high level and how account type affects documentation and controls.
- Describe account documentation requirements conceptually (forms, signatures, authority, and evidence retention).
- Explain why KYC updates are required and identify common update triggers (material changes and review cadence).
- Describe account opening and transfer requirement issues at a high level and why transfer processes must be controlled and documented.
- Recognize the risks of incomplete documentation (client harm, complaints, and regulatory exposure).
- Given a scenario, determine the correct first action when account opening information is missing or contradictory (hold, request, escalate).
- Describe how supervisors oversee documentation for account authority changes (e.g., authorized traders, powers of attorney) conceptually.
- Explain the role of recordkeeping in defending suitability and complaint handling.
- Recognize AML/identity-related red flags in account opening and the need to escalate appropriately.
- Describe how supervisors ensure staff training supports consistent, high-quality account opening and updates.
Supervision and Client Accounts (22%)
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Chapter 9 - Maintaining Client Accounts
- Describe ongoing KYC and suitability requirements and why maintenance is as important as onboarding.
- Explain how supervisors monitor suitability drift as client facts, markets, or holdings change.
- Describe supervision of client accounts at a high level (review cycles, exception reports, and approvals).
- Identify the cash account rule conceptually and recognize scenarios where it affects trade processing and supervision.
- Describe how to conduct trade reviews (what to look for, documentation to verify, and patterns to detect).
- Recognize common trade review red flags (concentration, leverage, churning, unsuitable risk exposure).
- Explain how dealer member checks and balances reduce errors and misconduct (segregation of duties and independent oversight).
- Describe how supervisors document reviews and close exceptions with evidence.
- Given a scenario, choose an appropriate supervisory response to an unsuitable trade pattern (review, restrict, escalate).
- Describe how supervisors oversee discretionary versus non-discretionary activity conceptually (permissions and evidence).
- Explain why timely updates to client information are necessary to defend recommendations and manage risk.
- Identify common operational risks in account maintenance (incorrect documentation, unauthorized changes, missed updates).
- Describe how supervisors use surveillance and dashboards to prioritize reviews effectively.
- Recognize how conflicts and incentives can affect account maintenance behaviour and require heightened supervision.
- Describe how supervisors coordinate with compliance and operations when account issues involve systemic control gaps.
Chapter 10 - Investment Banking and Trade Desk Supervision
- Differentiate institutional versus retail business lines and describe how supervision needs can differ at a high level.
- Describe investment banking activities conceptually and identify common supervision risks (conflicts and disclosures).
- Describe the research department’s role conceptually and recognize why information controls and integrity matter.
- Identify basic supervision themes for equity and fixed income trading (controls, surveillance, and escalation).
- Recognize potential market integrity issues that trading supervision aims to prevent (manipulative patterns and misuse of information).
- Describe a supervision program for derivatives and complex products at a high level (approvals, limits, training, and monitoring).
- Identify why complex products require enhanced supervision (leverage, suitability complexity, and operational risk).
- Given a scenario, select the most appropriate supervisory control for complex products (pre-approval, suitability checks, surveillance).
- Describe how supervisors coordinate across desks and functions to manage conflicts and information barriers conceptually.
- Recognize documentation expectations for institutional activity (approvals, communications, and audit trails).
- Explain why client classification and permissions matter for institutional products and strategies.
- Describe how supervisors respond to potential trading rule breaches (containment, evidence preservation, escalation).
- Identify common control failures in trading supervision (weak surveillance, unclear accountability, missing follow-up).
- Describe how supervision programs are tested and improved using incidents and audit findings.
- Recognize how supervisor decisions should be documented to demonstrate reasonable oversight.
Complaint Handling and the Consequences of Noncompliance (15%)
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Chapter 11 - Handling Client Complaints
- Describe how supervisors help avoid client complaints through proactive communication, documentation, and suitability discipline.
- Identify common types of client complaints and explain why all complaints must be handled through a structured process.
- Describe required procedures for regulatory complaints at a high level (intake, logging, escalation, investigation, resolution).
- Explain why evidence preservation is critical in complaint investigations (notes, records, and communications).
- Recognize complaint severity indicators that require escalation beyond the branch (allegations of misconduct or vulnerable clients).
- Describe additional client complaint avenues conceptually and why supervisors must be aware of them.
- Given a scenario, determine the first correct action when a complaint is received (log, acknowledge, escalate).
- Describe how supervisors manage communications during complaints (accuracy, confidentiality, and consistent messaging).
- Explain how complaint outcomes should drive remediation (root cause analysis, control changes, training).
- Recognize common complaint-handling failures (delays, incomplete documentation, defensive communication).
- Describe how supervisors track complaint trends to identify systemic issues and adjust supervision plans.
- Explain how supervisors document resolution steps and follow-up to demonstrate compliance.
- Recognize when compensation or client remediation decisions require additional approvals (conceptual).
- Describe how complaint handling connects to reputational risk and regulatory exposure.
- Identify how supervisors reinforce a “client-first” culture through consistent complaint response discipline.
Chapter 12 - Dealing with Regulators
- Describe how to respond to real or potential regulatory infractions at a high level (contain, document, escalate, remediate).
- Explain why timely escalation and evidence preservation are critical when regulatory issues are suspected.
- Describe CIRO’s investigation procedures conceptually and what supervisors should expect in an investigation lifecycle.
- Identify supervisor responsibilities during investigations (cooperation, accuracy, confidentiality, and documentation discipline).
- Recognize common triggers for regulatory scrutiny (complaints, patterns, audits, and reporting failures).
- Describe alternatives for dispute resolution at a high level (internal resolution, mediation, arbitration/ombuds concepts).
- Given a scenario, choose an appropriate first action when notified of a potential investigation (notify compliance/legal, preserve evidence).
- Explain how remediation plans should be documented and tracked to completion after a regulatory issue.
- Recognize communication pitfalls with regulators (speculation, inconsistency, missing records) and how to avoid them.
- Describe how supervisors use lessons learned from investigations to strengthen controls and training.
- Identify the consequences of noncompliance (sanctions, restrictions, supervisory conditions, reputational harm).
- Explain why supervision evidence and audit trails are central to demonstrating reasonable supervision to regulators.
- Recognize when an issue has broader firm implications and requires senior management involvement.
- Describe how supervisors maintain readiness for regulatory reviews (organized records, clear policies, and tested controls).
- Explain how dispute resolution and complaint outcomes can influence regulatory expectations and future supervision focus.
Tip: The easiest points come from “supervision mechanics”: documentation quality, escalation timing, and consistent review patterns.
Sources: https://www.csi.ca/en/learning/courses/idsc/curriculum and https://www.csi.ca/en/learning/courses/idsc/exam-credits