Financial Markets, Institutions and Financial Planning C, 15 Credits

Contents

This finance course is intended for students who want to increase their familiarity with financial market operations and the practical aspects of managing personal finances. It prepares students to work within financial institutions and/or financial consulting.

1. Module 1. Financial Markets and Institutions, 7.5 ECTS
2. Module 2. Financial Planning, 7.5 ECTS

Module 1. Financial Markets and Institutions, 7.5 ECTS

Due to the economic globalization and the modernization of financial assets' the global understanding of financial markets' organisation and institutional environment has become increasingly complex.  In this course the primary intent is to introduce students to the institutional environment in which financial transactions take place. A strong emphasis is put on the role of central banks, on regulations and innovations before and after the crisis. The differences between capital and money markets in bank or market controlled systems are presented, as well as, discussions about the operations of financial intermediaries.

With a practical framework, based on examples from European stock markets and foreign exchange markets, this course aims to develop managerial capacity to apply the decisions and policies of a Chief Financial Officer regarding the use of financial markets' structures and components. This module is also useful to the individual investors who must understand the markets in which they participants.

Expected learning outcomes:
After completing the module, the student should be able to:

• describe a variety of financial systems, how these operate, who uses these and the role of these systems in economies, as well as, to develop an understanding of the interpenetration of financial and economic parameters ;
• give details about the historical development of regulations and supervision, as well as, be able to and differentiate between bank and market based systems;
• assess and test the theoretical concepts underlying money and capital markets;
• understand and apply information related to financial issues in a global context with an emphasizes on the advantages and complexity of being international;
• produce detailed and coherent reports (both written and spoken) in matters related to financial systems;

Focus of instruction:
Teaching is conducted through lectures, seminars and case studies. The core topics will be covered by lectures and seminars, in which students will be expected to take an active part. Cases related to the topics will also be used. Students are required to make oral presentations at seminars and during case analyses. Students are also expected to self-manage learning: provided learning material is studied individually and/or in groups; relevant learning material is individually researched and analyzed.

Examination modes
Examination is based upon a written comprehensive individual exam and group assignments. A passing grade is required for each part of the module.

Module 2.   Financial Planning (7,5 ECTS)
This module is intended to introduce students to the role of the financial planner. The material covered includes an overview of the financial products available to clients (individuals rather than corporations), the assessment of client risk profiles and methods to control portfolio risk. The working and regulatory environment affecting financial planners in Sweden will be delineated. Some discussion of variations in financial instruments and regulatory environments between Sweden and other nations will also be presented. It is our intent to familiarize students with the issues confronting financial planners whether they work independently or for large concerns.  The focus is on elements of financial planning such as client profiling, tax, insurance, mortgages and other debt, pension and estate planning.

Expected learning outcomes
After completing the module, the student should be able to:

• describe the role of a financial planner and the methods employed by them to assess client needs;
• select from among the various financial instruments available, those most appropriate for inclusion in a personal financial portfolio for clients at differing stages in their life cycle;
• show how insurance and immunization strategies contain portfolio risks;
• explain the differences between various asset classes from managed funds to real estate;
• outline the regulatory framework under which financial planners operate and the impact of tax systems on wealth retention and distribution.
• understand and gather information related to financial issues and produce detailed and coherent reports (both written and spoken) by making a financial plan

Focus of instruction
This subject will be presented using lectures, where financial planning and practical applications are presented and explained and workshops, where participants apply theory and practice to solve numerical problems. Students are also expected to self-manage learning: provided learning material is studied individually and/or in groups; relevant learning material is individually researched and analyzed.
Students will make a financial plan for a fictive client and will present it at a seminar.

Examination modes
Students will make a financial plan group work and research, and present their work during a seminar. The assignment will be graded out of 40 points. The requirement is to obtain a minimum of 20 points out of 40 points. Students will undertake a written final examination. The exam will give a maximum of 60 points. A minimum of 30 points at the exam is required to pass the full course. A minimum of 50 points in total is required to pass the module. A passing grade is required for each part.

Expected learning outcomes

See respective module.

Required Knowledge

University: Courses in Business Administration (60 ECTS) At Basic level (A-level) and Intermediate level (B-level) a minimum of 60 ECTS in Management, Marketing, Accounting and Finance courses. Students are also required to have English A from Swedish gymnasium or the equivalent.

Form of instruction

See respective module.

Examination modes

Examination modes
Examination of Modules 1-2 will be based upon the student’s active participation in seminars, a written comprehensive individual exam (tentamen), and successful completion of group and individual coursework as assigned.

The following grading system will be used:
Pass with distinction (Väl godkänd, Vg, 75% or more),
Pass (Godkänd, G, 50% or more)
Fail (Underkänd, U, less than 50%).

To receive the grade Pass with distinction in the course, the student must have achieved at least 75% of the total of points in the separate modules or the equivalent

Students who fail to present a photo ID at the occasion of a written examination cannot have their results registered.

In case of failure on seminar participation or individual and group assignments, compensating assignments must be completed in accordance with instructions given, no later than two weeks after the completion of the module.

Students who do not pass at the time of the normal written examination will be offered an opportunity to sit a further examination within a month. Beyond that, additional examination opportunities normally arise every academic year, one week prior to the start of the autumn term.

When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity.

Rules and regulations concerning the production of academic texts and correct referencing will be applicable to all written assignments. (see instructions in the Thesis manual. Thesis writing in Business Administration.) Urkund records may be used for control.

Lectures are normally not obligatory. However attendance is expected because the lectures are designed to facilitate students towards achieving course specific learning objectives. In addition lectures often provide insightful explanations of, and can supplement and provide contrast to, the course litterateur and other relevant course materials.

Students who have passed an examination can not redo the examination to get a higher grade.

Grades on the course are awarded when students have passed all examinations and compulsory course elements.

Academic credit transfer
Academic credit transfers are according to the University credit transfer regulations.

Other regulations

This is a course at the C-level in a BSc-degree at Umeå University. The course can also be included in study programs in Business Administration and Economics at Umeå School of Business and Economics.