25769 Ethics for Financial Planning
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Credit points: 6 cp
Subject level:
Postgraduate
Result type: Grade and marksRequisite(s): 25742c Financial Management AND 25741c Capital Markets
The lower case 'c' after the subject code indicates that the subject is a corequisite. See definitions for details.
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Description
All financial planning professionals must have an understanding of ethical behavior and standards of conduct governing their professional judgment when advising clients and interacting with other stakeholders. This subject provides students who are interested in financial planning with the understanding of: (1) the role of the financial planning profession within the industry and its importance for society, (2) various ethical frameworks and decision making tools applicable to successful and sustainable professional practice, (3) the application of codes of ethics and standards of professional conduct to financial planning practice, (4) the importance and key aspects of due diligence processes and outcomes for client relationships, and (5) the pivotal role of clients' interests in the advisor-client relationship. Emphasis is placed on the application of tools and techniques to real-world problems to enable students to exercise responsible and sustainable decision making in their place of work.
Subject learning objectives (SLOs)
| 1. | Describe the importance of codes of ethics and standards of ethical behaviour for the financial planning profession |
|---|---|
| 2. | Demonstrate an understanding of key components of various ethical frameworks, including standard rules of professional conduct, diligence and client care, and professional development and commitment |
| 3. | Identify obligations under codes of ethics and standards of professional conduct |
| 4. | Analyse, evaluate and solve cases of ethical dilemmas in financial planning through application of ethical frameworks |
Contribution to the development of graduate attributes
The subject introduces students to a range of ethical frameworks, principles, and rules that prepare them for the management of ethical dilemmas in the financial planning profession.
This subject contributes to the development of the following graduate attributes:
- Intellectual rigour and innovative problem solving
- Communication and collaboration
- Social responsibility and cultural awareness
Teaching and learning strategies
Classes will be based on blended and flipped learning approaches. Students will also be required to participate in online learning activities. Students will have to engage and prepare a range of materials before class, including academic and non-academic publications, industry body reports, media articles, etc. Classes will include facilitated discussion of relevant case studies and analysis of key pitfalls in the financial planning industry.
Content (topics)
- Importance of ethical standards in the financial planning industry.
- Relevant ethical frameworks.
- Principles and standards of ethical behaviour.
- Applications to real world financial planning scenarios.
Assessment
Assessment task 1: Online quizzes*
| Intent: | This develops Program Learning Objectives 4.1 and 4.2 |
|---|---|
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
| Type: | Quiz/test |
| Groupwork: | Individual |
| Weight: | 20% |
| Criteria: | *Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Assessment task 2: Case study assessment report
| Intent: | This develops Program Learning Objectives 4.1 and 4.2 |
|---|---|
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
| Type: | Report |
| Groupwork: | Individual |
| Weight: | 40% |
Assessment task 3: Final exam
| Intent: | This develops Program Learning Objectives 4.1 and 4.2 |
|---|---|
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
| Type: | Examination |
| Groupwork: | Individual |
| Weight: | 40% |
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Required texts
Financial Advisers and Planners Code of Ethics - Legislative Instrument. (https://www.legislation.gov.au/Details/F2019L00117)
Financial Advisers and Planners Code of Ethics - Explanatory Statement. (https://www.legislation.gov.au/Details/F2019L00117/)
The FAAA Professional Code and FAAA Best Practice Standards (https://faaa.au/faaa-professional-code/)
Corporations Act 2001, Chapter 7. (http://www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/)
References
CFA Institute, Standards of Practice Handbook. 11th edition (2014). VA, USA.
Coombs, C. and Redman, A., 2018, March. The impact of robo-advice on financial advisers: a qualitative case study. In 23rd UK Academy for Information Systems International Conference (pp. 1-23). (https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1016&context=ukais2018)
Cull, M. and Sloan, T., 2016. Characteristics of trust in personal financial planning. Financial Planning Research Journal, 2(1), pp.12-35.
Guillemette, M.A. and Jurgenson, J.B., 2017. The impact of financial advice certification on investment choices. Journal of Financial Counseling and Planning, 28(1), pp.129-139. (https://files.eric.ed.gov/fulltext/EJ1185311.pdf)
Hayne, K.M., 2019. Final Report: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Commonwealth of Australia.
Ragatz, Julie A., Ronald F. Duska, and John R. Boatright, 2010. "Financial codes of ethics." Finance ethics: Critical issues in theory and practice, pp. 297-323.