Ethics in Finance

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. This subject is taught as a self-paced, online activities and materials (no scheduled classes) with an on campus final exam.

• 1Apply major intellectual theories of ethics as a basis for the analysis and resolution of ethical dilemmas in finance;
• 2Critically 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;
• 3Relate ethical principles to the financial theory of the firm including issues related to stakeholder theory, agency theory, corporate social responsibility and international businesses; and
• 4describe standards of professional conduct and recommend practices and procedures designed to prevent violations of ethical and professional financial market trading practices.