FIN-4203 Investments Conduct and Compliance PDF 2023-2024

FIN-4203 Investments Conduct and Compliance Business Course Number: FIN-4203 Prepared by: Approved by: Approval Date: Approved for Academic Year: Credit Weight: Co-Requisites: N/A Pre-Requisites: N/A Susan Doughty, Professor Chris Perkins, Dean Tuesday, June 13, 2023 2023-2024 3.00 Course Descriptio...

FIN-4203 Investments Conduct and Compliance Business Course Number: FIN-4203 Prepared by: Approved by: Approval Date: Approved for Academic Year: Credit Weight: Co-Requisites: N/A Pre-Requisites: N/A Susan Doughty, Professor Chris Perkins, Dean Tuesday, June 13, 2023 2023-2024 3.00 Course Description This course provides students with an understanding of the Canadian securities industry regulations. Procedures surrounding participant registration, account opening, sales and trading and placing orders will be discussed. The appropriate ethical guidelines and corporate responsibility when dealing with client accounts, transactions and products will be highlighted. Course Learning Outcomes/Course Objectives 1. Explain the basis of the Canadian regulatory environment 1.1 Outline the structure and principles of the Canadian securities industry regulation 1.2 Explain the role of the SROs and provincial regulators 1.3 Describe the role of the CIPF and limits of CIPF coverage 1.4 Recognize the different registration categories for dealers and advisors 1.5 Outline the proficiency requirements for different categories of registration 1.6 Explain the importance of the Know Your Client Rule and suitability in the registrant’s dealings with clients 1.7 Explain the importance of ethics in the securities industry 1.8 Describe the Code of Ethics and Standards of Conduct for the securities industry 1.9 Explain how to apply the Code and Standards to various situations 1.10 Explain the registration process under the National Registration System and the National Registration Database 1.11 Describe the requirements for dealing with clients in the United States © 2023 Lambton College FIN-4203 - Investments Conduct & Complian, Page 1/6 2. 3. Discuss appropriate standards of conduct involving client accounts 2.1 Explain the procedures for opening accounts 2.2 Discuss the importance of the New Account Application Form (NAAF) 2.3 Describe what constitutes proper completion of the NAAF 2.4 Identify the procedures for maintaining client records 2.5 Outline how to place an order and recognize the implications of different order types 2.6 Explain the settlement and delivery process 2.7 Discuss how to handle errors or changes in orders 2.8 Explain the purpose and application of the Cash Account Rule 2.9 Describe the operation of long and short margin accounts 2.10 Explain how to effectively deal with client complaints 2.11 Identify which sales practices are required, acceptable and prohibited 2.12 Explain why certain trading practices are considered manipulative 2.13 Explain confidentiality and compensation 2.14 Explain the restriction process on overdue cash accounts 2.15 Examine special margin situations 2.16 Explain regulations concerning sales communications 2.17 Describe what is required in a trade confirmation 2.18 Explain guidelines for mutual fund advertising 2.19 Describe the requirements for disclosure of fees in sales literature 2.20 Explain guidelines for use of the Internet when advertising dealer/advisor services or individual securities 2.21 Describe the requirements for disclosure of characteristics and risks of certain investment products Examine the theory and application of ethics in a securities environment 3.1 Define what values are and outline the importance of value awareness 3.2 State the basic ethical tenets of the securities industry 3.3 Describe the relationship between values, ethics, and law 3.4 Outline some of the major penalties related to unethical actions in organizations 3.5 Describe the importance of senior management support when designing ethical initiatives 3.6 Explain the central role of individual responsibility for ethical behaviour 3.7 State what it means to be a responsible professional 3.8 Explain what professionalism means from an ethical stance 3.9 Describe the importance of ethics within a dealer member 3.10 Discuss the importance of implementing accountability within a dealer member 3.11 Identify the necessity for corporations to supply clear guidelines of acceptable behaviour © 2023 Lambton College FIN-4203 - Investments Conduct & Complian, Page 2/6 4. 3.11 Identify the necessity for corporations to supply clear guidelines of acceptable behaviour 3.12 Recognize and assess an ethical dilemma 3.13 Analyze a situation using ethical dilemma resolution paradigms 3.14 Explain how to effectively make use of an ethical decision-making process 3.15 Define guidelines for corporate governance Outline appropriate conduct for special transactions and products, including bids and bringing new issues to market 4.1 Explain the take-over process and take-over legislation 4.2 Define insider bids 4.3 Discuss issuer bid regulations 4.4 Explain the regulatory process and requirements concerning bringing securities to market and continuous disclosure Relationship to Vocational Learning Outcomes This course provides the opportunity for you to achieve the following Program Vocational Learning Outcomes (VLO's), which will be taught and evaluated at a taught (T), assessed (A) or culminating performance (CP) level: FPWO - Financial Planning and Wealth Management VLO 1 Complete all work according to professional regulations, provincial legislation and ethical standards required by the financial services industry and its regulators. (T, A) VLO 3 Recommend investment strategies that help to mitigate negative economic impacts on personal Investments. (T, A) VLO 7 Differentiate among functions, roles, structure and operations of financial service organizations (banks, credit unions, investment dealers, trust companies etc.) in the Canadian banking system for the purposes of career planning. (T, A) VLO 8 Evaluate the financial performance of a business through the analysis of financial statements and business transactions in order to advise clients regarding potential stock investments. (T, A) FPWS - Financial Planning and Wealth Management VLO 1 Complete all work according to professional regulations, provincial legislation and ethical standards required by the financial services industry and its regulators. (T, A) VLO 3 Recommend investment strategies that help to mitigate negative economic impacts on personal Investments. (T, A) VLO 7 Differentiate among functions, roles, structure and operations of financial service organizations (banks, credit unions, investment dealers, trust companies etc.) in the Canadian banking system for the purposes of career planning. (T, A) VLO 8 Evaluate the financial performance of a business through the analysis of financial statements and business transactions in order to advise clients regarding potential stock investments. (T, A) FPWT - Financial Planning and Wealth Management © 2023 Lambton College FIN-4203 - Investments Conduct & Complian, Page 3/6 VLO 1 Complete all work according to professional regulations, provincial legislation and ethical standards required by the financial services industry and its regulators. (T, A) VLO 3 Recommend investment strategies that help to mitigate negative economic impacts on personal Investments. (T, A) VLO 7 Differentiate among functions, roles, structure and operations of financial service organizations (banks, credit unions, investment dealers, trust companies etc.) in the Canadian banking system for the purposes of career planning. (T, A) VLO 8 Evaluate the financial performance of a business through the analysis of financial statements and business transactions in order to advise clients regarding potential stock investments. (T, A) FSIT - Financial Services - Investigation and Compliance VLO 1 Adhere to Canadian and international legal and regulatory systems to ensure data security, integrity, privacy and confidentiality of client information. (T, A) VLO 2 Analyze data to inform decision-making when implementing regulations and requirements related to financial services investigations such as anti-money laundering. (T, A) VLO 3 Comply with ethical principles and rules of conduct of the Canadian financial services industry. (T, A) VLO 4 Apply financial investigative research principles, processes and techniques to ensure conformance in the delivery of financial services investigations. (T, A) VLO 7 Develop and apply teamwork, service excellence, problem-solving and leadership skills to contribute as an effective interprofessional team member in a Canadian financial setting. (T, A) VLO 8 Compare and contrast various types of investments including fixed income securities, common and preferred shares, and mutual funds to advise clients of the diverse financial opportunities. (T, A) VLO 9 Analyze financial data to inform strategic decision making to mitigate risk of compliance issues when implementing securities solutions. (T, A) Learning Resources Resources and Supplies Required https://seewhylearning.com/cph/ CPH Success Package Supplemental As provided by professor Student Evaluation TESTS - 45% 3 Tests, equally weighted at 15% each TEAM ASSIGNMENTS - 40% 2 Team Assignments weight equally 20% INDIVIDUAL ASSIGNMENTS - 15% 7 Individual Assignments totalling 15% (equally weighted) Grade Scheme © 2023 Lambton College FIN-4203 - Investments Conduct & Complian, Page 4/6 The round off mathematical principle will be used. Percentages are converted to letter grades and grade points as follows: Mark (%) 94-100 87-93 80-86 77-79 73-76 70-72 Grade A+ A AB+ B B- Grade Point 4.0 3.7 3.5 3.2 3.0 2.7 Mark (%) 67-69 63-66 60-62 50-59 0-49 Grade C+ C CD F Grade Point 2.3 2.0 1.7 1.0 0.0 Prior Learning Assessment and Recognition Students who wish to apply for prior learning assessment and recognition (PLAR) need to demonstrate competency at a post-secondary level in all of the course learning requirements outlined above. Evidence of learning achievement for PLAR candidates includes: Not Applicable: Students are not eligable for a Prior Learning Assessment. Course Related Information This course will be taught on a lecture basis with an emphasis on problem solving, analysis and decision making. Students will be required to work independently completing a variety of text exercises and cases as well as assignments prior to class discussion. These exercises offer students an opportunity to apply analytical concepts to typical decisions faced by investment advisors. The passing grade for this course is a D. To earn a passing grade in this course, students must obtain a weighted average of 50% or greater in the proctored evaluations. The list of ‘proctored’ evaluations will be published in the learning management system. The proctored evaluation weighted average must be 50% or greater in order for the non-proctored evaluations to be included in the calculation of the overall course grade." College Related Information Note: It is the student’s responsibility to retain course outlines for possible future use to support applications for transfer of credit to other educational institutions. Academic Integrity Lambton College is committed to high ethical standards in all academic activities within the College, including research, reporting and learning assessment (e.g. tests, lab reports, essays). The cornerstone of academic integrity and professional reputation is principled conduct. All scholastic and academic activity must be free of all forms of academic dishonesty, including copying, plagiarism and cheating. Lambton College will not tolerate any academic dishonesty, a position reflected in Lambton College policies. Students should be familiar with the Students Rights and Responsibilities Policy, located at lambtoncollege.ca. The policy states details concerning academic dishonesty and the penalties for dishonesty and unethical conduct. Questions regarding this policy, or requests for additional clarification, should be directed to the Lambton College © 2023 Lambton College FIN-4203 - Investments Conduct & Complian, Page 5/6 Student Success Department. Students with Disabilities If you are a student with a disability please identify your needs to the professor and/or the Accessibility Centre so that support services can be arranged for you. You can do this by making an appointment at the Accessibility Centre or by arranging a personal interview with the professor to discuss your needs. Lambton College in Toronto at Cestar College Campus and Lambton College in Mississauga at Queen's College Campus, please identify your needs to the professor and/or student services. Student Rights and Responsibility Policy Acceptable behaviour in class is established by the instructor and is expected of all students. Any form of misbehaviour, harassment or violence will not be tolerated. Action will be taken as outlined in Lambton College policy. Date of Withdrawal without Academic Penalty Please consult the Academic Regulations and Registrar's published dates. Waiver of Responsibility Every attempt has been made to ensure the accuracy of this information as of the date of publication. The content may be modified, without notice, as deemed appropriate by the College. Students should note policies may differ depending on the location of course offering. Please refer to your study location specific policies: LAMBTON COLLEGE POLICIES - applicable to all Lambton College students: Student Rights & Responsibilities & Discipline policy (2000-5-1) Test & Exam Writing Protocol (2000-1-6) Evaluation of Students (2000-1-3) Policy Link - https://www.lambtoncollege.ca/custom/Pages/Policies/Policies.aspx CESTAR COLLEGE: www.lambtoncollege.ca/policies-tor QUEENS COLLEGE: www.lambtoncollege.ca/policies-miss © 2023 Lambton College FIN-4203 - Investments Conduct & Complian, Page 6/6