Flaherty & Crumrine Preferred Income Opportunity Fund ("PFO")

Exhibit 77 Q(2)

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended
and Section 30(h) of the Investment Company Act 1940, as amended
require each Fund's directors and executive officers, certain
persons affiliated with Flaherty & Crumrine Incorporated  and
persons who beneficially own more than 10% of a registered class
of each Fund's securities to file reports of ownership and
changes of ownership with the Securities and Exchange Commission
and the New York Stock Exchange and to furnish each Fund with
copies of such forms they file.

Based solely upon its review of the copies of such forms
received by it and written representations from certain of such
persons, the Fund believes that during 2017 all transactions
required to be reported were reported in a timely manner with
the exception of the following: Bradford S. Stone, an officer of
the Fund and an affiliated person of the Fund's investment
adviser, failed to file a Form 5 in a timely manner.