FIN20016: Ethics and International Finance

'FIN20016: Ethics and International Finance unit requires every student to submit the following  assignment to be eligible to sit for the final exam. This is a major assignment and you must submit the  assignment. Make sure that you submit the assignment on time and the submission needs to be done  through online via CANVAS. If you have any concern regarding your assignment you must seek  assistance from your class tutor/lecture. The final report of this assignment is worth 15%.  

LEARNING OUTCOME:  

The Learning Outcomes of this assignment are:  

1. Discuss the importance of ethical decision making for investment professionals and the concept  of fairness for financial transactions to embrace public trust.  
2. Apply principles of professional integrity, trust and ethical conduct frameworks in the  investment profession  

ASSIGNMENT STRUCTURE:  

Please note each assignment should include the following sections to be accepted:  

1. Assignment Coversheet with student’s information  
2. Answer each of the assignment questions systematically and you must follow the guideline of  the word limit to answer each question  
3. References: must use Harvard referencing style  
4. Concluding remarks (if any)  
5. Appendix (if any) 

Case Study: Liborgate
Reference: McConnell, P. (2013). Systemic operational risk: The LIBOR manipulation scandal. The
Journal of Operational Risk, 8(3), 59-99.

Read the above article and answer the following questions:

1. What is ‘Libor’ and why is it so important to international finance? (1 mark)

(300 words minimum)

2. In regard to the ‘Liborgate’ misconduct:
a. Identify the main stakeholders affected by the rate-rigging scandal (1 mark)
b. Discuss the prevailing system and how it created conflicts of interest (2 marks)
c. Determine the different types of conflicts of interest that led to unethical behaviour
(3 marks)

(200+200+200 =600 words minimum)

3. Identify 3 (three) specific CFAI standards that were likely breached by the bank practitioners
in this case. Justify your response. (3 marks)

(300 words minimum)

4. In regard to the fallout from the ‘Liborgate’ case study:
a. Discuss the impact the scandal has likely had on the global banking industry. (2
marks)
b. What measures have been put in place to minimise the risk of such future
misconduct? Do you think regulators and the industry has sufficiently dealt with the
issue? (3 marks)

(300+300 =600 words minimum)