IC105-Ethics in Investment Management

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:4
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Mr John Chessher
Email: j.r.chessher@icmacentre.ac.uk

Type of module:

Summary module description:

Ethics in Investment Management offers a series of inter-linked, discussion-driven seminars and lectures that explore the ethical conflicts encountered by the investment management and finance professionals and firms. Students are encouraged to reflect on financialization and the impact of unethical behaviour on trading partners, customers, financial markets and wider stakeholders. The implications of unethical behaviour for civil society and the real economy are given particular attention and emphasis within this module. The module also helps students develop critical thinking and employability skills. Some of the topics covered in this module feature in the CFA ethics syllabus. Although the module materials and CFA ethics codes and standards are intended to be mutually reinforcing, this module should not be seen as an alternative to specialist training for the CFA exams.

Aims:

To explore the ethical dilemmas encountered by finance and investment management firms and professionals, and to be able to clearly articulate the implications for civil society and the real economy. 

Careers aims: During this module, students will:

• Reflect on their values, motivations and personality, and how this may influence their placement or internship choices


• Learn the key professional skills needed to navigate the placement or internship search process


• Within an employability context:

             o Explore what makes a good team

             o Identify the key steps in time management and managing personal productivity

             o Learn key negotiation concepts

             o Practise presentation skills

Assessable learning outcomes:

By the end of the module students will be able to:

-      Discuss the societal context for investment decision-making and how financialization affects investment decision-making and its consequences

-      identify the ethical dilemmas involved in investment and finance, and discuss the consequences of unethical behaviour by financial professionals and investment managers through the use of practical examples and cases 

-      articulate the conflicts between perceptions of economic advantage and the realities of serious societal harm

-      Critically evaluate short-term and long-term implications of unethical behaviour

-      put forward well-argued points of view on key dilemmas.  

Employability related outcomes: 

• Employment rights: recognition of employment rights, and current practices where relevant in the financial services industry 

• Teamwork – recognition of how to contribute effectively to a team 

• Time management – ability to prioritise, use time management tools and identify techniques for increased personal and team productivity

• Negotiation – ability to engage in basic negotiations and recognise the implications of negotiated outcomes 

• Presentation – ability to plan and deliver presentations

Additional outcomes:

Students will gain experience in handling case studies and in discussing ethical dilemmas in a real-world, professional context through in-class, peer-led discussions. They will also gain exposure to the CFA’s Standards of Practice Handbook which contains the CFA Institute’s Code of Ethics and Standards of Professional Conduct.

Outline content:

This module is taught using interactive and practical classroom discussions involving real examples and case studies.

Topics covered during lectures and seminars include: 

• Why is the financial sector (more generally) and investment management (more specifically) special and significant?


• What are the macro- and micro- ethical concerns given the above context?


• What is financialization? How does it impact power dynamics in society and consequently how does it impact ethical decision-making in finance?


• Risk, prudence, regulation and conduct
  
  
  
  • What risks does investment management as a sector present?
  
  
  • What risks do investment management firms, investment managers (and their colleagues) present?
  
  
  • How do sectoral / firm-level norms and problems affect individual behaviours?  
  
  
  • What duties do investment managers owe to employers and regulators? 
  
  
  • Do investment managers owe any duties to civil society? Why? How can these be discharged?
  
  
  
  


• What are the implications 
  
  
  
  • for the investment chain, investment decision-making, market integrity and fiduciary duties
  
  
  • for governance, culture, and remuneration including a discussion of incentives, disclosure, transparency, voice, exit, power and participation in the market for corporate control
  
  
  
  


• What do we mean by lobbying, revolving doors, greenwashing and manipulation of disclosure and transparency?


• What is the role of whistleblowing and scrutiny by other independent actors? What are the consequences for whistleblowers? Why does this matter?


• What are the consequences of irresponsible investment decisions?

Careers workshopsare designed to develop students’ ability to reflect on their values, motivations and personality. And how this influences their placement or internship choices. These workshops also allow students to reflect on their individual roles within a team and what makes a team particularly effective, as well as the importance of, organisation, negotiation and presentation skills in an employability context:

1. Recruitment processes and the internship or placement application journey


2. Activities to enhance your CV


3. The internship or placement search


4. Reflection on values and motivations, utilising a range of personality tools to help give career direction


5. CV and application forms


6. Psychometric testing


7. Interview techniques


8. Assessment centres:
   
   
   
   1. Group tasks: working effectively in a team, the roles within a team, and reflecting on what makes a good team
   
   
   2. Negotiation Skills
   
   
   3. Presentation skills
   
   
   
   


9. How to reflect on your practice and develop and enhance your skills from this reflection

Brief description of teaching and learning methods:

This is intended to be a module where students engage meaningfully and critically with ethical dilemmas faced by investment managers in a way that recognises and prioritises the implications for civil society. 

Students will be expected to engage with pre-readings, audio-visual materials and other sources so they can engage meaningfully and critically with the different ethical dilemmas in finance and investment management. The aspiration is for all students to participate ac tively in the interactive lectures and seminars. Classroom work involves practical activities that centre on the range of socio-cultural, economic, political, psychological and other dimensions that affect approaches to ethical decision-making in practice. Students are exposed to a range of international examples, cases and ethical challenges, from both within and outside the financial services industry so as to stimulate a lively and frank discussion. Reflective observation is actively encourag ed in such discussion. Students will also be exposed to careers elements that helps them to engage professionally and ethically in the workplace and in teams.

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

One written essay assignment and one presentation (project output)

Essay (90% of the final mark)

Essay of approximately 2500 words plus annotated bibliography to be submitted in the exam period

Project output (10% of final mark) 

Individual 5 min reflective presentation (10% of the final mark) wherein students demonstrate reflection and critical thinking in an employment context

Formative assessment methods:

In class short test and activities to enhance reflective writing

Generic feedback on draft annotated bibliography

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy.

Assessment requirements for a pass:

A minimum mark of 35% is required for a University pass.

Reassessment arrangements:

Resubmission of final essay in August/September contributing to 100% of the final mark.

Additional Costs (specified where applicable):

Textbooks, printing and allied costs : £100

Last updated: 28 September 2023