The course’s objective is to understand the importance of ethics and professional standards when conducting business in the financial sector. It offers a pragmatic approach of ethics in finance, pointing out some of the recent issues that emerged since the financial crisis.
To begin, we analyse some of the recent codes of conduct issued by the finance industry as well as CFA Institute® Code of Ethics and Standards of Professional Conduct; we then turn to concrete issues such as rate-rigging, toxic assets or liabilities, product structuring, investor protection, as well as some of the recent regulation. Topics are covered through presentations in class, student presentations, exercises and case studies. Student presentations will be presented in class under a pre-set format; they count towards the participation grade.
The main objective for this course is to give a global overview on the main Compliance concepts applied in a Corporate & Investment Bank, and to emphasize the latest developments in the regulatory environment.
Session 1-Definitions of ethics & standards. Ethical decision making
Session 2- What do Codes of Ethics and Codes of conducts tell us?
Session 3- FX and Libor rate-rigging & other Benchmarks
Session 4- Toxic Assets and Liabilities
Session 5- Investor Protection, why does it matter?
Session 6- Product Governance, why does it matter?
Session 7- Market related issues
Session 8- Dealing with Retail or Unsophisticated Investors
CFA Institute® Code of Ethics and Standards of Professional Conduct.
CFA Institute® Standards of Practice Handbook, 2014 edition.
Lewis, M.,The Big Short, 2011.
Lewis, M., Flash Boys, 2014.
O’ Malley, C., The Story of the Eurobond Markets (ch. 10-11), 2015.
Third AML Directive 2005/60/EC replaced by Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing
Markets in Financial Instruments Directive 2004/39/EC (called MIFID 1) and Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments called MIFID 2
Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives (MAD /MAR 1) replaced by Directive 2014/57/EU (MAD2) on criminal sanctions for market abuse and Regulation No 596/2014 on market abuse (MAR 2)
Participation and final exam