York University Atkinson Faculty School of Administrative Studies IMPORTANT NOTICE REGARDING CHANGES IN ADMS 4502 This course

will change somewhat from what it was during the first two years of its existence. The calendar description will not change for another year. We are making these changes after our initial experience with the new finance curriculum. The title of the course is misleading and in the future it will change to: Ethics for Investment Managers. The content will include a framework for ethics in finance, the ethical code of the CFA Institute, and the professional governance mechanisms and institutions for wealth management practitioners in Canada. Thus the course becomes part of the program recommended for those who wish to write the CFA level I and II and Canadian Securities Course (CSC) exams. During 2006-07, the course covered only the CFA Code of Ethics and Global Investment Performance Standards (GIPS). The GIPS topic has been moved to ADMS 4501. In addition, the prerequisite for ADMS 4502 is given as ADMS 4501 in the calendar, but that will be changed to ADMS 3531, which provides enough investment knowledge so that students can grasp the ethical issues, and gives more freedom to schedule courses. COURSE: ADMS 4502 Professional Investment Management Winter 2009 DATE and TIME: LOCATION: INSTRUCTOR: WEBSITE Thursdays, 7:00 to 10:00 p.m. CB 115 Paul Fettes Email: pfettes@yorku.ca Phone: (416) 489-4843. Email is best.

http://crystal.atkinson.yorku.ca/2009w-akadms4502m-03

TEXT BOOKS: Level II Ethics, 2009 (CFA) download legally for free from: http://www.cfainstitute.org/cfaprog/resources/studysessions.html Kwok Ho and Chris Robinson, Personal Financial Planning, Fourth Edition, Captus Press, 2005. (HR) (students should already have this from ADMS 3541), pg. 556-66. There will be some additional reading on regulation and governance in the Canadian investment business, but I have not yet determined the source. Students must read The Globe and Mail Report on Business or The National Post on a regular basis in order to discuss current events related to ethics for wealth managers Prerequisites: The calendar says ADMS 4501, but I require only ADMS 3531, and the calendar will change to reflect that next year.

LEARNING OBJECTIVES: 1. Analyze and discuss ethical issues in finance using a formal framework. 2. Interpret and apply the CFA Code of Ethics in specific situations, and recommend how to prevent violations of the code. 3. Understand the Canadian regulatory environment and institutions for wealth managers. 4. Develop oral and written presentation skills. GRADING SCHEME: Group Assignments Individual Assignments Oral presentation Final Exam NOTES: 1. GROUP ASSIGNMENTS Students will work in groups of three or four to discuss the course materials outside the class and to prepare group assignments. Assignments must be submitted on the due dates at the beginning of class. Faxed, Emailed or late assignments will not be accepted under any circumstances, unless a valid medical reason is provided. I will enforce these due dates and times rigorously, because we will discuss the assignments in class. Each student is responsible for the group. While you may write the assignment as a group, if you want to do well on the final exam it is critical that each person completes the analysis individually before meeting their group. Do not split the assignment among the group members. You will learn more and get better grades if you analyze each question together as a second stage analysis following each participants individual analysis. WRITTEN ASSIGNMENTS When completing assignments please observe the following guidelines: Text must be typed and double-spaced on one side of 8 x 11 paper. Do not use report covers. Staple the assignments in upper left hand corner Covering page must have your names, student numbers, Course identification, Assignment number and the due date clearly marked. Grammar, spelling, structure of your report and quality of presentation will be taken into consideration. These are essential business skills. There are resources to help you writing your reports, such as Atkinsons writing clinic, etc. It is highly recommended that you use these resources to avoid losing marks unnecessarily. Do not take this recommendation lightly! Assignments that have been delayed for medical reasons will not be accepted after the last date for term work. Marking will be done on the basis of percentages as outlined in the Atkinson Faculty calendar. 30 % 30 10 30

3.

4.

EXAMINATIONS The final exam will be a take home exam. Date and time TBA

ORAL PRESENTATIONS Each student will present orally in class, based on one of the written group or individual assignments. The instructor will assign who will present which assignment and when. You will email any slides for this presentation to the instructor by noon the day before the class and he will put all slides on a single disk in order of presentation to make the class move more smoothly. Given the number of students I expect in the course, more than one person will be presenting each problem. We will debate the issues as a class after all presenters on a given question have spoken and this discussion will be testable in the final exam. All students in the class must attend all presentations.

ADMS 4502 Winter 2009 - Course Schedule

Session 1 Mar 5 2 Mar 12 3 Mar 19 4 Mar 26 5 Apr 2 6 Apr 9 7 Apr 16 8 Apr 23 9 Apr 30 10 May 7 11 May 14 Topics Framework for Ethics in Wealth Management Determine your groups for assignments CFA Code of Ethics and Standards of Professional Conduct Overview Standard #1: Professionalism Std #3 Duty to Clients and Prospective Clients Basic report writing for ethics questions Std #6 Conflicts of Interest Std #5 Investment Analysis, Recommendations and Actions CFA Institute Research Objectivity Standards Std #2 Integrity of Capital Markets Std #4 Duties to Employers Std #7 Responsibilities as a CFA Institute Member/Candidate CFA Institute Soft Dollar Standards Trade Allocation: Fair Dealing and Disclosure Canadian regulatory institutions and environment Presentations from Assignment and class discussion of ethics in current events Presentations from Assignment and class discussion of ethics in current events Review for Final Exam Readings
HR Ch. 20, pg. 556-65 CFA 11 14 CFA 15 - 36 CFA 48 - 69 CFA 89 - 101 CFA 80 89 CFA 153 - 65 CFA 37 - 48 CFA 69 80 CFA 101 - 9

Required Class Preparation

Assignments G=group assignment S=Solo assignment Assignment S1 assigned Assignment G1 assigned Assignment S1 due Assignment G1 due Assignment S2 assigned Assignment G2 assigned

Discuss Questions 8, 16, 18, 19 (CFA 110-17) Discuss Questions 15, 24 (CFA 110-17) Oral presentations S1 Oral presentations S1 Discuss CVG case (CFA 166-67). Oral presentations G1 Discuss Acertado/Boswin case (CFA 118-19) Oral Presentations G1 Discuss Apfelbaum case (CFA 120-21) Oral presentations S2 Discuss Lev Capital Management, CFA 149-51 Oral Presentations S2 Oral presentations G2 Discuss Voser case (CFA 124-26) Oral Presentations G2

CFA 133 - 48

Assignment S2 due Assignment G2 due

TBA TBA