Ethics In Finance

This subject is not offered in 2013.

Estimated total time commitment of 120 hours per semester

FNCE90056 Investment Management or equivalent

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For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Ethical practices instil a public trust in the fairness of financial markets and transactions, allowing them to function efficiently. Ethical practices by finance and investment professionals benefit all market participants and stakeholders and lead to increased investor confidence in global capital markets. The perspectives acquired in this subject should be useful to students in their chosen finance profession as this subject presents a framework for ethical conduct in the investment profession by focusing on the CFA Institute Code of Ethics and Standards of Professional Conduct. Citing and discussing examples of the financial scandals that have shaken public confidence in the ethics of financial market participants, this subject explains the importance of ethics in the operation of financial institutions and in the personal conduct of finance professionals.

On successful completion of this subject, students should be able to:

• Synthesise intellectual theories of ethics and apply these to an analysis and resolution of ethical dilemmas in finance;
• Critically evaluate ethical and professional conduct standards in finance through an examination of topical issues related to ethics in investment decisions, financial markets and financial services;
• Analyse ethical principles in relation to the financial theory of the firm including issues related to stakeholder theory, agency theory, corporate social responsibility and international businesses;
• Explain standards of professional conduct and evaluate practices and procedures designed to prevent violations of ethical and professional financial market trading practices.

• wiki-based group assignment (2000 words), by the end of week 2 (of 6), 20%
• wiki-based group assignment (3000 words), by the end of week 5 (of 6), 30%
• 2-hour final examination (50%)

• Boatright, J.R., 2009. Ethics and the Conduct of Business, 6th Ed., Pearson Education International, New Jersey, USA.
• CFA Institute, 2005. Standards of Practice Handbook, 9th Ed., Charlottesville, Virginia, USA.

This subject is not available as a breadth subject.

High level of development:

• written and oral communication;
• analysis of the application of theory to practice;
• identification and evaluation of attitudes, actions and beliefs of others;
• working effectively within groups/teams;
• dynamically and effectively responding to changing situations and priorities;
• application of high ethical standards in professional practice and social interactions.