IB9KB-15 Ethics, Financial Regulation and Corporate Governance
Introductory description
This module will be split into three parts to cover financial ethics, financial regulation, and environmental, social and governance issues.
Module aims
The first objective of this course is to introduce the concept of ethics and how it relates to the work that is done by finance professionals within financial institutions and companies. The second part will discuss the role of financial regulators who aim to make financial markets work well so that consumers get a fair deal, to enhance financial market integrity and to promote competition. The third part will focus on environmental, social and governance issues from an investor point of view.
Outline syllabus
This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.
Ethics and ethical expression finance
-Dual mode of ethical reasoning
Competition and misconduct
- Dilemmas and Current scandals in finance ethics
Sustainability and ESG - Market reaction to ESG firm actions and carbon footprint
Financial Regulation and Ethics - market integrity, competition and conduct
- CFA code of conduct
ESG investing
ESG investing as risk management
Human rights, Environment, justice and sustainability
Financial Regulation and Ethics
Market integrity, competition and conduct
Financial regulation and misconduct
Learning outcomes
By the end of the module, students should be able to:
- Identify and explain the legal and professional consequences of misconduct, for example (not all covered), whistleblowing, fraud, bribery and corruption, money laundering and data protection laws. carbon footprint ort lack of sustainability.
- Appreciate the market reaction to ESG/sustainability.
- Demonstrate a comprehensive understanding of fundamental concepts in finance ethics including utilitarianism, deontology, and virtue.
- Critically evaluate and apply theoretical models, concepts, and tools shared throughout the course
Indicative reading list
Egan, M., G. Matvos, and A. Seru (2019). The market for financial adviser misconduct. Journal of Political Economy 127 (1), 233-295.
Greene, J. D., R. B. Sommerville, L. E. Nystrom, J. M. Darley, and J. D. Cohen (2001). An fmri investigation of emotional engagement in moral judgment. Science 293 (5537), 2105{2108.
International
The last part of this module in term 3 is delivered at an international partner business school location (travel permitting). It is delivered by Warwick faculty, but with guest speakers and cultural activities provided by the partner business school.
Subject specific skills
Analyse and evaluate the role in society of banks, other financial institutions, and the impact of financial regulation on corporate behaviour.
Analyse and evaluate the role of financial regulation in managing misconduct
Transferable skills
Express and understand how humans render ethical decisions
Study time
| Type | Required |
|---|---|
| Lectures | 18 sessions of 1 hour (13%) |
| Seminars | 6 sessions of 1 hour (4%) |
| Practical classes | 4 sessions of 1 hour (3%) |
| Supervised practical classes | (0%) |
| Private study | 49 hours (36%) |
| Assessment | 58 hours 30 minutes (43%) |
| Total | 135.5 hours |
Private study description
Private study to include preparation for lectures and practical classes.
Costs
No further costs have been identified for this module.
You do not need to pass all assessment components to pass the module.
Assessment group D1
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
Assessment component |
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| Individual Assignment | 15% | 11 hours | Yes (extension) |
Reassessment component is the same |
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Assessment component |
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| Group presentation | 15% | 14 hours 30 minutes | No |
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Group presentation and/or presentation slides on equity ESG valuation |
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Reassessment component is the same |
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Assessment component |
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| In-person Examination | 70% | 33 hours | No |
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Written Exam 2 hour
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Reassessment component is the same |
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Feedback on assessment
Students will receive verbal formative feedback throughout the module. Summative feedback will be given on each assignment.
Courses
This module is Core for:
- Year 1 of TIBS-N300 MSc in Finance
- Year 1 of TIBS-LN1J Postgraduate Taught Finance and Economics