Behavioural Finance and Financial Planning Ethics

Unit code: BEO2015 | Study level: Undergraduate
Credit points
12
(Generally, 1 credit = 10 hours of classes and independent study.)
Location
City Campus
Prerequisites
N/A
Overview
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Overview

Understand how to develop sound professional relationships through building trust and understanding your clients needs by behaving ethically. Build trusted relationships the importance of building trust and understanding your clients needs. Learn how to manage financial risk through Insurance and Estate Planning to help ensure clients and their loved ones are appropriately cared for financially upon their passing.

In this unit will learn how to:

  • Communicate effectively and develop trust
  • Understand the psychological factors that drive decision making
  • Utilise these factors to navigate these factors in the best interests of the client
  • Nurture professional relationships using ethics

This unit also introduces you to real world cases, with in-depth analysis of ethical behaviour in the financial advisory industry. Unethical actions are scrutinised in light of the Royal Commission into the Financial Services Industry and you will be provided with the knowledge necessary to act ethically and professionally when engaging with clients in your capacity as a financial planner.

Learning Outcomes

On successful completion of this unit, students will be able to:

  1. Analyse various client behaviours and apply techniques which develop trust in professional relationships;
  2. Communicate financial strategies effectively within a professional environment;
  3. Scrutinise and understand the elements of unethical behaviour which work against the best interests of clients when offering financial advice; and
  4. Apply best practice in ethical responsibility when communicating with, and constructing a Statement of Advice for a client.

Assessment

For Melbourne campuses

Assessment type: Test
|
Grade: 10%
Multiple Choice Quiz
Assessment type: Report
|
Grade: 20%
Behaviour analysis report
Assessment type: Case Study
|
Grade: 30%
Ethical Practice Case Study
Assessment type: Test
|
Grade: 40%
Final Test

Required reading

Behavioural Finance and Wealth Management: How to build Investment Strategies that account for investor biases,
Pompian, M. (2021)| Wiley
Ethics and Professional Practice in Financial Planning
Cull, M, et al. (2021)| Lexis Nexis

As part of a course

This unit is not compulsory for any specific course. Depending on the course you study, this unit may be taken as an elective.

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