ICM511: Applied Wealth Management and Private Banking

Module code: ICM511

Module provider: ICMA Centre; Henley Business School

Credits: 20

Level: 7

When you'll be taught: Semester 2

Module convenor: Mr Konstantinos Maratos, email: k.maratos@icmacentre.ac.uk

Pre-requisite module(s): Unique to MSc Investment Management Programme (Open)

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2024/5

Available to visiting students: No

Talis reading list: No

Last updated: 19 November 2024

Overview

Module aims and purpose

The module is designed for students considering a front office career in the global wealth management industry. The module starts with a discussion of the regulatory framework pertaining to investment management and the integrity, standards and professional values required of practitioners involved in dealing with wealth management clients. Special emphasis is placed on the role of wealth managers in identifying and preventing Money Laundering as well as in the Complaints process which allows retails clients to seek redress from a financial institution if the service or the product they received was not in line with their needs and expectations.  

The module then moves on and studies the development of an investment plan based on client preferences and available financial solutions and strategies. The module will discuss the information that is needed in order to construct a portfolio tailor-made to the needs and circumstances of each client.  

Students will study various asset classes – such as Cash and Money Market products, Equities, Bonds, Property and Commodities as well as the various ways of accessing each asset class including derivatives and collective investment vehicles. On completion of the module, students will be familiar with the process of constructing portfolios tailormade to the needs of individual clients and with the various solutions and investment vehicles that can be utilised in private wealth portfolios.  

In the second part of the module, students will study peripheral areas affecting the core wealth management process and its outcome. In this part, students will familiarize with insurance products and solutions and their role in the context of a wealth management portfolio, personal taxation as well as “windows” for tax optimisation such as EISs (Enterprise Investment Schemes) and VCTs (Venture Capital Trusts). In the final part of the course, we will look into Trusts and how they work in the context of passing on wealth and inheritance planning as well as into retirement planning and how pensions fit into the wealth management process. 

Module learning outcomes

By the end of the module, it is expected that students should be able to: 

• Define the aims and approaches of regulators on a global level and the importance of integrity and ethics in wealth management and the role of the wealth manager in identifying and preventing money laundering 

• Identify and explain the workings and application of the various asset classes and how they can be used in wealth management portfolios of different risk profiles.  

• Differentiate between the different types of investment vehicles and critically assess when single lines or collective investment should be preferred. 

• Utilise insurance products and solutions in the context of a wealth management portfolio and identify the impact of taxation on wealth management process and structure portfolios that are optimal from a tax perspective 

Module content

• Principles of the global regulatory framework and conduct of business rules for investment management 
• Client profiling techniques and use of client information in setting portfolio objectives 
• Structuring wealth portfolios for different risk profiles and investment objectives 
• Selecting the optimal investment vehicles for the implementation of suitable asset allocation 
• Insurance solutions and their applications in wealth management 
• Impact of taxation on the performance of wealth management portfolios 
• Structuring portfolios with a focus on inheritance planning via the utilisation of trusts 
• Incorporating pension portfolios in the broader wealth management process  

Structure

Teaching and learning methods

Teaching is via lectures supported by seminars which include discussion of the practical applications of the lectures’ material in modern wealth management, as well as covering questions from past papers from the relevant professional exams.

Study hours

At least 30 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

50% weighted average mark 

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Students will be able to submit draft versions of their work in the period (approximately 1 month) between the release of the coursework and the submission deadline. Feedback and guidance will be provided on an individual basis.

Reassessment

Additional costs