FIN 476: Financial Ethics

Textbook Information

  • Financial Ethics (FIN 476) is a self-guided Ethics course based on the CFA Institute’s latest edition of the Standards of Practice Handbook. The PDF of the Standards is available inside the course. The course is self-paced. Quizzes and final exam can be printed out for review and taken at any time prior to the deadline. Any questions regarding course content can be submitted to Dr. Greg Filbeck at mgf11@psu.edu.

Published Remarks

  • None

Hardware Requirements

  • None

Software Requirements

  • None

Proctored Exams

  • None

Course Description

In this one credit course, we explore ethical standards for financial analysts and portfolio managers as a part of the Standards of Practice Handbook from the CFA Institute. In this one credit course, we explore ethical standards for financial analysts and portfolio managers as a part of the Standards of Practice Handbook from the CFA Institute, which also serves as a part of the curriculum for all three levels of the Chartered Financial Analyst exams and both levels of the Chartered Alternative Investment Analyst (CAIA) exams.

Course Framework: 

This course is self-guided and self-paced which may be completed at your convenience. The quizzes and final exam are not timed – and can be printed out prior to submission for your convenience. Questions can be challenging as they are designed in the same manner as those questions appearing on the CFA Level 1 exam.

Grading scale:

Quizzes (5 of 6)                                  75 percent Final Exam                                          25 percent Quizzes:  Six quizzes will be administered during the term, with the ability to drop the lowest score.  Each quiz will be worth 15 percent of the course grade. Final Exam:  The final exam is comprehensive covering the entire Handbook.

Schedule:  

Students may take quizzes and final exams at any time during the semester. All coursework must be completed no later than the final day of finals week.  Any incomplete quiz will be assigned a zero after that time.

Course Outline:

Module 1: 

Why Ethics Matters Standard I: Professionalism

  1. Knowledge of the Law
  2. Independence and Objectivity
  3. Misrepresentation
  4. Misconduct

Quiz #1

Module 2:

Standard II: Integrity of Capital Markets

  1. Material Nonpublic Information
  2. Market Manipulation

Quiz #2

Module 3:

Standard III: Duties to Clients

  1. Loyalty, Prudence, and Care
  2. Fair Dealing
  3. Suitability
  4. Performance Presentation
  5. Preservation of Confidentiality

Quiz #3

Module 4:

Standard IV: Duties to Employers

  1. Loyalty
  2. Additional Compensation Arrangements
  3. Responsibilities of Supervisors

Quiz #4

Module 5:

Standard V: Investment Analysis, Recommendations, and Actions

  1. Diligence and Reasonable Basis
  2. Communication with Clients and Prospective Clients
  3. Record Retention

Quiz #5

Module 6:

Standard VI: Conflicts of Interest

  1. Disclosure of Conflicts
  2. Priority of Transactions
  3. Referral Fees

Quiz #6

 Module 7:

Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate

  1. Conduct as Members and Candidates in the CFA Program
  2. Reference to CFA Institute, the CFA Designation, and the CFA Program

Final Exam