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. The course is given and examined in English.

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

Module 1. Financial Markets and Institutions, 7.5 credits
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 financial institutions and stock 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 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:
Learning is supported by 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.

Module 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. The course is given and examined in English. Note as well examination modes for the course below.

Module 2. Financial Planning 7,5 credits
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
Learning is supported by 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.

Module examination modes
Students will make a financial plan group work and research and present their work during a seminar. Students will undertake a written final examination. A passing grade is required for each part. The course is given and examined in English. Note as well examination modes for the course below.

Expected learning outcomes

See respective module.

Required Knowledge

Courses in Business Administration (60 credits) At Basic level (A-level) and Intermediate level (B-level) a minimum of 60 credits. Proficiency in English equivalent to Swedish upper secondary course English B, English/6.

Form of instruction

See respective module.

Examination modes

See each separate module and below.

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

Grades on the course are awarded when the student has passed all examinations and compulsory course elements. The course is given and examined in English.

To receive the grade Pass with distinction (VG) in the 30 credits course consisting of four modules of the same size, the student must have achieved Pass with distinction (VG) in at least three out of four modules. In shorter courses for example 7,5 credit courses, 15 credit courses or 22,5 credits courses Pass with distinction (VG) is given when the student has achieved at least 75% of the total weighted points.

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

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. Mandatory assignments (seminars, written assignments, cases, computer assignments etc.) that have not been handed in within stipulated time must be done the next time the course is offered. If the form of examination does not permit repetition other forms of re-examination may be used.

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.

A student who has passed an examination can not redo the examination to get a higher grade.

If a student fails to present a photo ID at the occasion of a written exam in an exam room will not be allowed to take the exam.

Disciplinary action may be taken against students who uses unauthorized help aids or in some other way tries to mislead on a test or when another type of task is being evaluated. 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. In addition, Umeå University rules and regulations for education and research applies:  http://www.umu.se/regelverk/utbildning-pa-grund--och-avancerad-niva

Educational activities are designed to facilitate students towards achieving expected learning outcomes and can explain, supplement and provide contrast to the course literature and other relevant course materials.

Other regulations
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.