CIRO CFO case studies
CIRO CFO · Put your knowledge to work in context.
The CIRO CFO designation refers to the Chief Financial Officer Qualifying Exam, a proficiency requirement for finance leaders at dealer members regulated by the Canadian Investment Regulatory Organization. Candidates are typically financial and operations principals, controllers, or aspiring CFOs at investment dealers who must demonstrate command of the financial, regulatory, and operational duties attached to the CFO role. The CIRO CFO case studies are 5 cases and about 3,477 words.
1Repurchase Agreement Treated as a Sale: Control and Revenue Recognition
A dealer member, Northbridge Securities, enters into a repo-style transaction on 3 March. It transfers 48 million of corporate bonds to a counterparty for 46 million cash and simultaneously agrees to repurchase identical bonds on 3 June for 46.6 million.
678 words, about 3 min2Regulatory Capital Treatment of a Subordinated Loan and Goodwill
Cedar Peak Securities is a dealer member with 120 million of common equity tier 1 capital before adjustments. It holds 18 million of goodwill from a 2021 acquisition and 6 million of intangible assets with a 10-year remaining life.
716 words, about 4 min3Margin Deficiency and the Close-Out Decision
A retail client at Harborline Securities holds a margin account with 180,000 of long market value in a concentrated position in a single small-cap stock and 95,000 of debit balance. The firm's house maintenance requirement is 30%, and the regulatory minimum is 25%.
726 words, about 4 min4Client Order Handling and Principal Trading Conflict
A dealer member, Grantham & Co., receives a large buy order from an institutional client for 500,000 shares of a mid-cap issuer. The firm's proprietary desk holds 200,000 shares of the same issuer and has a standing instruction to reduce inventory.
687 words, about 3 min5Operational Risk Event: Failed Settlement and Control Breakdown
On a Friday, a dealer member, Pinehurst Financial, fails to deliver 12 million of municipal bonds because the operations team transposed a CUSIP in the settlement instruction. The counterparty declares a buy-in and purchases the bonds at a 180,000 higher price.
670 words, about 3 min