Ethical and Professional Standards

2025/2026

Type: Mago-Lego

Delivered by: HSE Banking Institute

When: 1 module

Open to: students of one campus

Language: English

Contact hours: 20

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Abstract

This course is targeted on a developing of practical knowledge and recognition of standards of professional conduct that is conventional in financial industry. The course covers the CFA Ethic and Professional Standards and Ethical Practices applicable to Portfolio Management. The course introduces the CFA Institute Guidance for Standards and is illustrated with real life cases and codes adopted by corporations worldwide.The financial sector is one of the most regulated industries. In terms of performing transactions, maintaining records or entering into contractual relations, the actions of participants in financial markets are regulated by the requirements of legislation and regulatory bodies. In terms of creating business models, financial institutions rely on the apparatus of economics and mathematics, two sciences with a rich academic heritage. At the same time, despite the high level of regulation, in practice, both companies as a whole and individual representatives regularly encounter situations in which actions are not described, neither in words nor in formulas.Cases in which choosing the right solution is a difficult ethical dilemma are not only issues of disclosing conflicts of interest or expensive gifts. Ethics deals with much deeper topics. How deep is the analysis to be done when valuing securitized instruments? Which reports should not be trusted when analyzing a company's financial situation? Why close the exchange of data between divisions of one investment firm, if this firm manages clients' investments and brings companies to the IPO? Acquaintance with professional and ethical standards will allow listeners not only to find answers to the questions raised above, but also to think about many others.Is it possible that ignorance or misunderstanding of the importance of professional and ethical standards by any financial market participants has any noticeable negative consequences for financial markets as a whole, or are standards nothing more than a set of rules for solving local problems?Imagine any market. Real estate market, used car market, antiques market. When investors are convinced that prices are subject to manipulation and the best lots are distributed without getting to the market, investors lose confidence in the market and exclude objects traded on such a market from the list of investment attractive ones. Whether the decline in investor confidence in the market is distributed over time or like an avalanche, the result invariably is a decrease in market size and, as a result, job losses. As part of the course, students will get acquainted with a number of notorious crashes of recent decades, caused by nothing more than panic and massive outflow of investors.Awareness of the importance of business ethics and standards of professional conduct and the need to regulate them came to the representatives of the US financial sector in the 60s, taking shape in a code that is still used today in a revised form. This course details the interconnected framework of professional conduct standards as reflected in the CFA Institute's Code of Ethics. In the process of studying, all norms and requirements are illustrated with a large number of practical examples, approaches to the analysis of various situations are proposed, as well as typical mistakes in interpreting the applicability of various standards.

Learning Objectives

The aim is to provide trainees with a holistic picture of the interconnected system of standards and rules, as well as the practice of their application

Expected Learning Outcomes

After completing the course, students will be able to: Interpret specific actions (or omissions) of financial professionals as ethical or unethical
Indicate the standard or standards related to certain actions or omissions of financial professionals
Recommend behavior compliant with the code of ethics and standards of professional conduct, as well as contribute to resolving of conflicts in various practical cases
Plan their professional activities in the financial market in such a way as to meet high ethical standards, as well as to promote their dissemination in the professional environment, strengthening the investment attractiveness of the financial market and their personal professional reputation
This course provides financial professionals with a comprehensive framework for ethical decision-making, combining theoretical knowledge of standards with practical application in real-world scenarios.
By completing this program, participants will develop the expertise to: Evaluate whether specific actions (or omissions) by financial professionals meet ethical benchmarks; Map observed behaviors to specific CFA Institute Standards of Professional Conduct; Formulate actionable recommendations to align behavior with ethical codes; Integrate ethical standards into business strategies and operational workflows Enhance market confidence through transparent, principle-driven professional conduct

Course Contents

Introduction. Review of professional standards of work in financial markets.
Principles of the code of ethics
Standards of professional conduct:

Assessment Elements

Final Exam
The Test is presented in electronic form on the LMS platform. The test includes 30 multiple choise questions (CFA level 1 format). The Test Rules: 60 minutes are allotted for the test. Test swer for each question.
The Project
To perform project work, each group has to complete two tasks. To complete the tasks, you can work independently or as a part of a group (note, that all students in the same group share the same grade, strictly no more than 4 members). The Project is completed at home. The project opens on the second week of the course and remains open till the last class. At the last class date individuals and groups are invited to present their works. The Project closes for submission on a day of the last class.
Attendance
Attendance is not strictly mandatory, but participating in at least 3 lectures grants you 10 bonus points. • If you miss a lecture, you can compensate by submitting an independent essay on a selected topic (a list of topics will be provided later). However, keep in mind that regular attendance is highly recommended, as missing classes may make it difficult to complete the group/individual project work successfully

Interim Assessment

2025/2026 1st module
0.1 * Attendance + 0.5 * Final Exam + 0.4 * The Project

Bibliography

Recommended Core Bibliography

An introduction to business ethics, Desjardins, J., 2009
Becker, C. U. (2019). Business Ethics : Methods and Application. New York: Routledge. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1982142
DeMartino, G. (2005). A Professional Ethics Code for Economists. Challenge (05775132), 48(4), 88–104. https://doi.org/10.1080/05775132.2005.11034308
Schwartz, M. S. (2017). Business Ethics : An Ethical Decision-Making Approach. Malden, MA: Wiley-Blackwell. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1470324
Sison, A. G., Ferrero Muñoz, I., & Guitián, G. (2018). Business Ethics : A Virtue Ethics and Common Good Approach. New York: Routledge. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1729153

Recommended Additional Bibliography

Beer, L. A. (2015). A Strategic and Tactical Approach to Global Business Ethics, Second Edition (Vol. Second edition). New York: Business Expert Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=939533

Authors

ODINTSOVA ULYANA ALEKSANDROVNA
ELIZAROVA IRINA NIKOLAEVNA

Course Syllabus