Ethical Standards and Financial Law

obligatory courses

The main course objective is a presentation of backgrounds and significance of ethical and professional standards and legal regulations in the financial market. The basic expected result of instruction is getting knowledge of existing regulations and standards and ability to apply them to factual situations. The course is focused both on regulations and standards of international scope as well as those applicable in Poland. The course is conducted as a lecture in English and it is intended for a first-year students of II degree studies, major: Quantitative Finance. The final grade is based on the written exam.

The lecture focus is to show students significance of ethical and professional standards and legal regulations in the financial market and present their backgrounds and consequences. The course introduces an overview of main existing regulations and standards, both applicable in Poland and of international scope, as well as it shows how to apply them to factual situations. The following topics will be covered:

- The course content in a big picture - its economic, social and philosophical context. Significance of formal and informal norms in economy - an institutional approach. Morality and speculations - a historical preview.

- Historical backgrounds of ethical standards and legal regulations regarding financial markets. Financial frauds versus financial crises. Reputational capital and the role of trust. Review, aims and significance of professional standards regulating behaviors of financial market's actors.

- Professionalism: knowledge of the law, independence and objectivity, misrepresentation and misconduct. Case studies and standard application.

- Nonpublic information and market manipulation. Case studies and standard application.

- Duties to clients, employees and employer. Case studies and standard application.

- Investment analyses, investment recommendations and financial statements. Case studies and standard application.

- Conflicts of interest. Case studies and standard application.

- Compliance and internal corporate ethical standards and code of conduct.

- Corporate social responsibility.

- Legal basis of financial market in Poland. Financial law institutions. Basics of legal regulations related to financial system supervision.

Required readings:

1. Ethical and Professional Standards and Quantitative Methods. CFA Program Curriculum. Volume 1. Level I 2009, CFA Institute, Pearson Custom Publishing, Boston 2009, p. 1-166.

2. Case studies regarding ethical and professional standards from CFA Institute webpage: https://www.cfainstitute.org/cfaprog/university/pdf/ethics_cases.pdf

3. Ustawa z dnia 29 lipca 2005 r. o obrocie instrumentami finansowymi

4. Ustawa z dnia 21 lipca 2006 r. o nadzorze nad rynkiem finansowym

After the course, students will understand aims, context and significance of ethical standards and legal regulations in financial market. They will have a general knowledge of ethical standards and will be able apply them to business situations. They will get to know the basic codes of conduct regarding management of conflicts of interest. They will gain knowledge of basic issues regarding corporate governance. They will get an orientation of legal basis applicable to Polish financial market, including regulations regarding protection of financial institutions’ clients. They will understand implications of violating regulations of financial law and applicable standards.

KW01, KW02, KU01, KU02

The lecture is conducted in English. Presence at the classes is not required, but the knowledge of issues presented during the lecture and not included in the required readings is obligatory. The condition to obtain a credit is passing a written exam composed of test questions (multiple-choice) and open questions. There is only one re-exam opportunity after the end of term, and this re-exam is of the same form as the regular end-term exam.