Ethical Standards and Financial Law 2400-QFU1ESL
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 finacial market's actors.
- Professionalism: knowledge of the law, independence and objectivity, honesty. Case studies and standard application.
- Nonpublic information and market manipulation. Case studies and standard application.
- Duties to clients, employes 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.
- International ethical and professional standards, eg. Global Investment Performance Standards.
- Polish ethical standards applying to investment advisors (DI) and stock maclers (MPW).
- Corporate governance.
- 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.
- Protection of financial institutions’ clients, eg. MiFID. Complementarity of legal regulations and ethical and professional standards.
- Ethical and professional standards, laws and regulations in the financial market - trends and perspectives.
Type of course
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 writen exam composed of test questions (multiple-choice) and one open question, requiring one-page descriptive answer in a form of a short essay. 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.
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
5. Zasady Etyki Zawodowej Maklerów i Doradców
6. Kodeks Dobrej Praktyki Domów Maklerskich
1. Calder A. (2008), Corporate Governance: A Practical Guide to the Legal Frameworks and International Codes of Practice, Kogan Page
2. Chłopecki A., Dul M., Michalski M., Sobolewski L., Szumański A., Weiss I. (2006), System prawa prywatnego. Prawo papierów wartościowych. Tom 19, C. H. Beck
3. Chłopecki A., Dyl M. (2003), Prawo rynku kapitałowego, C. H. Beck
4. Dębski W. (2007), Rynek finansowy i jego mechanizmy: podstawy teorii i praktyki, Wydawnictwo Naukowe PWN, Warszawa
5. Dunbar N. (2000), Alchemia pieniądza. Historia Long-Term Capital Management i mitów z nim związanych, Liber, Warszawa (or original version: Inventing Money. The story of Long-Term Capital Management and the legends behind it, John Wiley & Sons, Inc.)
6. Gilmore W. C. (1999), Brudne pieniądze: metody przeciwdziałania praniu pieniędzy, PWE
7. Grossman S. and Stiglitz J. (1980), On the Impossibility of Informationally Efficient Markets, American Economic Review. Vol. 70, No. 3: 393–408
8. Hayes D. A. (1962), Ethical Considerations in the Professional Stature of Analysts, Financial Analysts Journal. Vol. 18, No. 5: 53−56
9. Jensen M. C. and Meckling W. H. (1976), Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics, Vol. 3, No. 4: 305–360
10. Kindleberger C. P. (1999), Szaleństwo, Panika, Krach. Historia kryzysów finansowych, WIG-Press, Warszawa (or original version: Manias, Panics and Crashes. A History of Financial Crises, Macmillan Press Ltd.)
11. Klimczak B (1997), Etyczne otoczenie rynku kapitałowego, Wydawnictwo Akademii Ekonomicznej im. Oscara Langego we Wrocławiu
12. Kuciński R. (2000), Przestępstwa giełdowe, C. H. Beck
13. Michaely R. and Womack K. (1999), Conflict Of Interest And The Credibility Of Underwriter Analyst Recommendations, Review of Financial Studies, V12(Spec): 653–686
14. Mojak J. (2005), Prawo papierów wartościowych. Zarys wykładu, LexisNexis
15. North Douglass C. (1990), Institutions, Institutional Change and Economic Performance, Cambridge University Press
16. Sims R. R. (2003), Ethics and Corporate Social Responsibility: Why Giants Fall, Greenwood Press
17. Case studies from PRMIA webpage : http://prmia.org/index.php?page=exam&option=trainingWebBasedResource
Information on level of this course, year of study and semester when the course unit is delivered, types and amount of class hours - can be found in course structure diagrams of apropriate study programmes. This course is related to the following study programmes:
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: