Ethics in Finance

This subject has the following teaching availabilities in 2015:

None

Please refer to Prerequisites and Corequisites.

None

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:
• apply major intellectual theories of ethics as a basis for the analysis and resolution of ethical dilemmas in finance;
• critically examine ethical standards and issues of questionable professional conduct in finance by addressing topical issues related to ethics in investment decisions, financial markets and financial services;
• relate ethical principles to the financial theory of the firm including issues related to stakeholder theory, agency theory, corporate social responsibility and international businesses;
• describe standards of professional conduct and recommend practices and procedures designed to prevent violations of ethical and professional financial market trading practices.

• Group Wiki due start of week 4 (9/02/15) (30%)
• Final exam during week of March 2 - 6, 2015 (70%)

Week 1 Jan 19 – 23 Fri Jan 23rd – webinar 1 (5-6pm)

Week 2 Jan 27 – 30 Wiki start - Tues Jan 27th

Week 3 Feb 2 - 6

Week 4 Feb 9 -13 Wiki due - Mon Feb 9th , Fri Feb 13th – webinar 2 (5-6pm)

Week 5 Feb 16-20

Week 6 Feb 23-27 Fri Feb 27th - webinar 3 (5-6pm)

Exam Week March 2 - 6

Boatright, J.R., 2009. Ethics and the Conduct of Business, 6 th Ed., Pearson Education International, New Jersey, USA.

CFA Institute, 2005. Standards of Practice Handbook, 9 th Ed., Charlottesville, Virginia, USA.

This subject potentially can be taken as a breadth subject component for the following courses:

• Bachelor of Arts
• Bachelor of Biomedicine
• Bachelor of Environments
• Bachelor of Music
• Bachelor of Science
• Bachelor of Engineering

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

High level of development: written and oral communication; application of theory to practice; ability to recognise attitudes, actions and beliefs of others; working effectively within groups/ teams; adaptability to respond readily to changing situations and priorities; application of high ethical standards in professional practice and social interactions