25858 Ethics and Governance in Finance

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2025 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:

Postgraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Description

Ethical conduct by business leaders and finance professionals enhances public trust in the financial system and increases investor confidence in capital markets, both of which are crucial for ensuring that markets function efficiently. Governance refers to the system of rules, practices, and processes by which institutions and organisations are controlled, as well as the mechanisms for holding them and their members accountable. This subject introduces students to the key concepts of ethics and governance for finance and investment professionals. It develops a general framework for ethical decision-making in business and provides a detailed overview of the financial institutions and regulatory bodies responsible for maintaining the health of the Australian financial system. It also gives students an in-depth understanding of corporate governance, highlighting the roles and responsibilities of the directors and officeholders of a firm.

Subject learning objectives (SLOs)

1.	Apply ethical theories and decision-making frameworks to evaluate and resolve ethical dilemmas specific to investment management, corporate finance and financial markets
2.	Use the CFA Institute Code of Ethics and Standards of Professional Conduct to evaluate professional conduct and resolve questions of professional integrity
3.	Evaluate corporate decisions in light of the principles of corporate governance and the duties and responsibilities of company directors
4.	Formulate corporate policies incorporating elements of risk governance, corporate social responsibility, stakeholder considerations and global perspectives

Contribution to the development of graduate attributes

This subject uses a series of case studies that illustrate the principles of ethical decision-making and sound corporate governance to develop GA 4 and PLO 4.1. This subject contributes to the development of the following graduate attributes:

• Professional and technical competence

This subject also contributes specifically to develop the following Program Learning Objectives:

• Lead ethical principles in professional financial practice (4.1)

Teaching and learning strategies

Subject content will be delivered via the learning management system (LMS). This material will include the following:

• Overviews of the theory and principles of ethical decision-making and corporate governance
• Recorded lectures condensing specific topics in the curriculum
• Links to relevant news reports and articles
• Practice quizzes and other self-assessment tasks
• Case studies illustrating the application of the subject material

The weekly three-hour seminars will be used to review the relevant subject material for each week and to discuss case studies where that material is applied.

An aim of this subject is to help you develop academic and professional language and communication skills to succeed at university and in the workplace. During the course of this subject, you will complete a milestone assessment task that will, in addition to assessing your subject-specific learning objectives, assess your English language proficiency.

Content (topics)

• Ethical foundations and ethical decision-making frameworks
• Corporate ethics and accountability
• Market integrity
• Fiduciary responsibilities and trust
• Due diligence in investment analysis
• Managing conflicts of interest in finance
• Overview of corporate governance and governance mechanisms
• The board of directors and its responsibilities and obligations
• Regulatory bodies in Australia
• Risk governance, corporate social responsibility, and stakeholders
• Global perspectives on governance

Assessment

Assessment task 1: Written reflections on in-class discussions (Individual)*

Objective(s):	This addresses subject learning objective(s): 1, 2, 3 and 4
Weight:	60%
Length:	Each written reflection will take up the final 15 to 20 minutes of the seminars in weeks 1-6 and weeks 7-12.
Criteria:	Identification of theory and subject material that is relevant to the analysis of the case study/news article Accurate summary of the consensus view of the class emanating from the discussion Well-reasoned and substantiated personal views on the case study/news article Correctly highlighting points of difference and points of agreement between the student and the consensus view of the class *Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Assessment task 2: In-class quizzes (Individual)*

Objective(s):	This addresses subject learning objective(s): 1, 2, 3 and 4
Weight:	40%
Length:	Each quiz will last for 45 minutes at the end of the seminars in weeks 6 and 12.
Criteria:	Correct application of ethical theories to resolve ethical dilemmas Correct application of CFA Institute Code of Ethics and Standards of Professional Conduct Applying of the principles of corporate governance and articulating the duties and responsibilities of company directors Sound assessment of corporate policies incorporating elements of risk governance, corporate social responsibility, stakeholder considerations and global perspectives *Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

Excerpts from news articles, videos, case studies and academic articles will be provided on the UTS LMS.