This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 1 > 2,00 ECTS
• IÉSEG > IESEG Degree - Programme Grande École > Semester 2 > 2,00 ECTS

Prerequisites

Investment Management, Financial Management

Learning outcomes

At the end of the course, the student should be able to:
Understand ethical issues in investment decisions and money management
Improve analytical thinking skills
Improve presentation skills
Improve managerial skills
Prepare students for CFA® Level I Exam

Course description

The goals of the course are to make students aware of the importance of making ethical and socially responsible decisions. This practice is especially important in the investment industry since these decisions will not only affect a client/firm itself but also other stakeholders and shareholders. Moreover, the portfolio managers can also influence a behavior of other market participants, for example by punishing the firm behaving in unethical manner, and by limiting its ability to raise the capital in financial market.
However, very often the ethical and socially responsible behavior might conflict with traditional business objectives, creating dilemmas for their managers. These dilemmas are related to such aspects as insider trading, priority of investment decisions, gifts from the clients, additional compensations and many others. Individuals who work in the area of investment management have a special duty to behave in an ethical and socially responsible manner. This course has an objective to get the students familiar with these dilemmas they will face while starting their career in investment banking. It will also provide them with appropriate skills to resolve these dilemmas ethically. This need has been only highlighted by an on-going financial crisis.
The structure of the course will follow the requirements of CFA Institute for the CFA Level I, II and III exams. However, some topics will be more deeply discussed than in the CFA preparatory book.

Class type

Class structure

Teaching methods

• Interactive class
• Lecture
• Presentation
• Project work
• Tutorial

Assessment

The assessment of the course will mainly consist of interactive discussion during the class participation, case studies and presentations, home assisgnment, and final exam.

20% Active participation during the class
50% Home Project + Presentation (last class)
30% - Class Case Study

Recommended reading

• Standard of Practice Handbook, 9th Edition, CFA Institute, 2011 -

• Global Investment Performance Standards (GIPS®), CFA Institute, 2011 -

• The Corporate Governance of Listed Companies: A manual for Investors, CFA Institue, 2011 -

Internet resources

• CFA Institute

  The global Association of Investment Professionals

• www.cfainstitute. org