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At CSI, the well-being of our valued learners and staff is our highest priority. Learn more about our response to COVID-19 and changes to our exam delivery format.

New Entrants Course (NEC)

 

The New Entrants Course assumes an established base of investment knowledge and looks at subjects from a Canadian perspective, including:

  • Overview of the Canadian securities industry
  • Selected Canadian economic topics
  • Investment products
  • Managed products, including alternative investments, segregated funds and exchange-traded funds
  • Fee-based accounts
  • Taxes and taxation issues
  • The Canadian regulatory environment and ethics
  • Opening client accounts
  • Maintaining client accounts

Learning Experience

CSI's online learning system helps you meet your study goals. You'll benefit from:

  • Learning objectives that keep you focused
  • Interactive tools to help you evaluate and apply course material
  • Online post-chapter review questions to assess your progress
  • Course updates to ensure you’re learning the most current and up-to-date practical material in your studies
  • Assistance from CSI's academic support specialists
  • Canadian Securities Course (CSC®) textbooks and the Conduct and Practices Handbook (CPH) available in PDF, eBook and printed format.

What's New

As part of our agreement with IIROC, CSI committed to an extensive reformulate plan for the CPH The CPH has been:

  • Reorganized from two textbooks into one textbook comprised of two major sections
  • Recontextualized from the perspective of an IIROC Registered Representative
  • Rewritten for consistency in tone, clarity, matter-of-fact delivery and continuity

Given the restructuring and rewriting, the course blueprint was revised, and therefore affects the NEC blueprint.

What you'll learn

If you select the "with textbook" option you'll receive a printed version of the Canadian Securities Course (CSC®) and the Conduct and Practices Handbook (CPH).

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CSC Chapters Click Here to Expand

Section 1 - The Canadian Investment Marketplace

Chapter 1 - The Canadian Securities Industry

In this chapter, we describe the interrelationships between the various participants in the Canadian securities industry. In particular, we discuss the important role that investment dealers and other financial intermediaries play in channelling funds between lenders and borrowers.

Topics covered in this chapter are:

  • Overview of the Canadian Securities Industry

  • The Investment Dealer's Role as a Financial Intermediary

  • Financial Intermediaries Other than Investment Dealers

  • Financial Market Trends

Section 2 - The Economy

Chapter 4 - Overview of Economics

This chapter provides an introduction to economics, wherein you will learn about the effect of microeconomic and macroeconomic environments on the financial markets. You will learn how economic growth is measured, and how certain factors determine the health of the economy and help predict the direction the markets might take. You will also learn to understand the indicators that influence investment decision-making, including the phases of the business cycle, the condition of the labour market, and the current state of interest rates. Finally, you will learn to analyze the effect of international economics on the domestic investing environment.

Topics covered in this chapter are:

  • Defining Economics

  • Measuring Economic Growth

  • Business Cycle

  • The Labour Market

  • The Role of Interest Rates

  • The Impact of Inflation

  • International Finance and Trade

Chapter 5 - Economic Policy

In this chapter, you will learn about economic policy, both fiscal and monetary, and the impact of government policy decisions on the investment landscape. In this context, you will learn about the roles and functions of the Bank of Canada and the challenges that governments face in setting their economic policies.

Topics covered in this chapter are:

  • Fiscal Policy

  • The Bank of Canada

  • Monetary Policy

  • The Challenges of Government Policy

Section 3 - Investment Products

Chapter 6 - Fixed-Income Securities: Features and Types

In this chapter, you will learn about the fixed-income marketplace and the rationale for using fixed-income securities. You will become familiar with the terminology used to discuss bonds, debentures, and other types of fixed-income securities, and you will learn to distinguish among the different types used by governments and corporations. Finally, you will learn how to read bond quotes and ratings.

Topics covered in this chapter are:

  • The Fixed-Income Marketplace

  • The Basic Features and Terminology of Fixed-Income Securities

  • Government of Canada Securities

  • Provincial and Municipal Government Securities

  • Types of Corporate Bonds

  • Other Fixed-Income Securities

  • How to Read Bond Quotes and Ratings

Chapter 7 - Fixed-Income Securities: Pricing and Trading

In this chapter, you will learn how to calculate the price and yield of fixed-income securities. You will also learn about interest rates on bonds, including the difference between the nominal and the real rate of return, how interest rates are depicted on a yield curve, and how they are determined according to three theoretical principles. You will then learn how and why bond prices go up or down according to certain fixed-income pricing properties. Next, you will learn about bond trading and the rules and regulations around the delivery of bonds and the settlement of transactions. Finally, you will learn how bond indexes are used by portfolio managers as performance measurement tools and to construct bond index funds.

Topics covered in this chapter are:

  • Calculating Price and Yield of a Bond

  • Term Structure of Interest Rates

  • Fundamental Bond Pricing Properties

  • Bond Market Trading

  • Bond Indexes

Chapter 8 - Equity Securities: Common and Preferred Shares

In this chapter, you will learn the basic features of equity securities, a category that includes common and preferred shares. We explain the investment considerations of the two broad categories, and we compare the advantages and disadvantages of investing in either type. Finally, we describe the important role played by Canadian, U.S., and global stock market indexes.

Topics covered in this chapter are:

  • Common Shares

  • Preferred Shares

  • Stock Indexes and Averages

Chapter 17 - Mutual Funds: Structure and Regulation

In this chapter, we provide a brief introduction to managed products. We then focus specifically on one of the most widely recognized managed products-mutual funds. We discuss various mutual fund structures and explain the rules and regulations of the industry. We then discuss the importance of Know Your Client and suitability requirements in the context of mutual funds. Finally, you will learn about the requirements around documentation and disclosure.

Topics covered in this chapter are:

  • Overview of Managed Products

  • Overview of Mutual Funds

  • Pricing Mutual Fund Units

  • Mutual Fund Regulation

  • Other Forms and Requirements

  • The Know Your Client Rule

  • Requirements For Opening and Updating an Account

Chapter 19 - Exchange-Traded Funds

In this chapter, you will learn about the regulation, structure, and taxation of exchange-traded funds. We will also discuss features, risks, and various types of exchanged-traded funds, as well as common strategies.

Topics covered in this chapter are:

  • The Regulation and Structure of Exchange-Traded Funds

  • Key Features of Exchange-Traded Funds

  • The Various Types of Exchange-Traded Funds

  • The Risks of Investing in Exchange-Traded funds

  • Comparing Exchange-Traded Funds and Mutual Funds

  • Taxation of Investors in Exchange-Traded Funds

  • Investment Strategies Using Exchange- Traded Funds

  • Other Related Products

Chapter 20 - Alternative Investments - Benefits, Risks and Structure

In this chapter you will learn about alternative investments, including hedge funds and alternative mutual funds. You will learn about the benefits and risks of investing in these types of products, and you will learn the structure of alternative investments and how they differ from conventional mutual funds.

Topics covered in this chapter are:

  • Introduction to Alternative Investments

  • Investing in Alternatives - Benefits and Risks

  • Alternative Investment Structures

  • Comparing Alternative Mutual Funds with Conventional Mutual Funds and Hedge Funds

Chapter 22 - Other Managed Products

In this chapter, you will learn about additional types of managed products, including their structure and characteristics, their regulatory issues and tax considerations.

Topics covered in this chapter are:

  • Segregated Funds

  • Labour-Sponsored Venture Capital Corporations

  • Closed-End Funds

  • Income Trusts

  • Listed Private Equity

Chapter 23 - Structured Products

In this chapter, you will learn about the features of structured products in general, including their benefits and risks. You will also learn how different products are structured, and what risks and tax implications are associated with the different types.

Topics covered in this chapter are:

  • Overview of Structured Products

  • Principal-Protected Notes

  • Market-Linked Guaranteed Investment Certificates

  • Split Shares

  • Asset-Backed Securities

Section 4 - Working With the Client

Chapter 24 - Canadian Taxation

In this chapter, you will learn the basics of taxation, including the tax features of pension income, tax deferral plans, and tax-free savings plans in Canada. We explain how the different types of income are taxed and identify the expenses related to investment income that might be tax-deductible. We also explain the two main types of pension plans and the different types of tax deferral and tax-free registered plans. Finally, you will learn some basic tax planning strategies.

Topics covered in this chapter are:

  • The Canadian Taxation System

  • Capital Gains and Losses

  • Tax Deferral and tax-free Plans

  • Tax Planning Strategies

Chapter 25 - Fee-Based Accounts

In this chapter, you will learn about the various types of fee-based accounts, both managed and unmanaged.

Topics covered in this chapter are:

  • Overview of Fee-Based Accounts

  • Managed Fee-based Accounts

  • Non-Managed Fee-based Accounts

CPH CHAPTERS CLICK HERE TO EXPAND

Section 1 - Standards of Conduct in the Securities Industry

Chapter 1 - Standards of Conduct and Ethics

Topics covered in this chapter are:

  • Standards of Conduct and Ethics

  • Integrating Ethics with Industry Rules

  • Rules of Thumb to Guide the Conduct of Registered Representatives

Chapter 2 - Ethical Decision Making

Topics covered in this chapter are:

  • Overview of Ethics

  • The Relationships Between Values, Ethics, and the Law

  • Value Awareness

  • Ethical Dilemmas

  • Ethical Decision Making

Chapter 3 - The Canadian Regulatory Framework

Topics covered in this chapter are:

  • General Principles of Securities Regulation

  • Key Government Players Involved in Securities Regulation

  • Self-Regulatory Organizations

  • Investor Protection Funds

  • Money Laundering and Terrorist Financing in the Securities Industry

Section 2 - Dealing With Clients in the Securities Industry

Chapter 4 - Working WIth Clients

Topics covered in this chapter are:

  • Registration Requirements of a Registered Representative

  • Communication with the Public

  • General Regulations and Guidelines for Sales Literature

  • Dealing with Clients

  • Privacy and Cybersecurity

Chapter 5 - Client Discovery and Account Opening

Topics covered in this chapter are:

  • Opening Accounts

  • The New Account Application Form

  • Completing the New Account Application Form

  • Disclosures

  • Client Records

Chapter 6 - Product Due Diligence, Recommendations, and Advice

Topics covered in this chapter are:

  • Suitability of Investments and Investment Strategies

  • Product Due Diligence

  • New Issues and Prospectus Exemptions

  • Take-over Bids and Issuer Bids

Chapter 7 - Trading, Settlement, and Prohibited Activities

Topics covered in this chapter are:

  • How Securities Are Traded

  • Types of Orders

  • Sales and Trading Conduct

  • Prohibited Activities

  • Settlements, Transfers, and Corrections

Chapter 8 - Maintaining Client Accounts and Relationships

Topics covered in this chapter are:

  • Accounting for Client Transactions

  • Margin Accounts

  • Cash Accounts

  • Communicating Trading Information to Customers

  • Client Complaints and Account Transfer Requests

Chapter 9 - Putting it All Together

Topics covered in this chapter are:

  • Review of Good Conduct and Practices

  • Case Study: The Chengs' Accounts

 

If you selected the "with textbook" option you'll receive a printed version of the Canadian Securities Course (CSC®) and the Conduct and Practices Handbook (CPH).

EXAM WEIGHTINGS
(weightings are approximate)
The Canadian Investment Marketplace CSC Volume 1: Chapter 1 5%
The Economy CSC Volume 1: Chapters 4, 5 7%
Investment Products CSC Volumes 1 & 2: Chapters 6, 7, 8, 17, 19, 20, 21 25%
Canadian Taxation CSC Volume 2: Chapters 22, 23 16%
The Regulatory Environment and Ethics CPH: Chapters 1, 2, 3, 9 16%
Opening Client Accounts CPH: Chapters 4, 5 13%
Maintaining Client Accounts CPH: Chapters 6, 7, 8 18%
EXAM INFORMATION
Exams 1
Exam Format Proctored (remote or in person at a test centre)
Exam Duration 2 Hours
Question Format Multiple Choice
Questions Per Exam 75
Attempts Allowed Per Exam 3*
Passing Grade 60%
Assignments None
ENROLMENT PERIOD
Enrolment Period 1 year†
COURSE COMPLETION NOTICE AND WALL CERTIFICATE

On successful completion of this course you will be able to download a Notice of Course Completion available through your student profile. This will remain on your profile as formal confirmation of course completion.

CSI will mail you a wall certificate within 4 - 6 weeks of course completion. Frames to display your certificate are available. Please ensure that your First and Last Name on your profile match your First and Last Name on your Government Issued Photo identification - this will ensure you receive an accurate certificate.

CSI will be pleased to issue an Honors Certificate to all student who obtain a final course mark of 85% or higher.

* The first attempt is included in the course enrolment fee. Further attempts incur fees.

†Please note: Access to your online materials will close 2 weeks after successful course completion or course expiry (whichever comes first). This course can be extended by 1 year provided you have not exceeded the attempts allowed  for each exam. You can view CSI extension fees here . Your enrolment period can only be extended one time.

Continuing Education (CE) Credits

Click the links below or the buttons at the top of the page on the right side to access CE accreditation information. To search for specific course information, press Ctrl + F and then enter the course name to search the document for the information you are interested in.

National/Provincial (Excluding Quebec)
Download CE Chart (PDF, 163 kb)

Quebec (IQPF/CSF)
Download IQPF/CSF Chart (PDF, 182 kb)

Please note: While CSI makes every effort to ensure that the information is up-to-date, we are unfortunately unable to fully guarantee its accuracy. The information listed in the charts above may be subject to change.

For details on the organizations and other information on CE Credits listed in the above charts, please click here.