ETHIQUE, NORMES PROFESSIONNELLES ET CONFORMITE

Professeurs

BERTRAND CANEL - Juriste bancaire et financier, chargé de relations avec les superviseurs, Société Générale

PHILIPPE NARDONE -Compliance Officer, Group Compliance Department, Crédit Agricole S.A.

NICOLAS RAYMOND - Compliance Officer, Group Compliance, Crédit Agricole Group

VINICIUS WOLF-Sanctions Internationales - Groupe monitoring, Crédit Agricole Group

Les objectifs du cours

Conducting business in the financial sector means conducting business with highest standards of ethics and in accordance with the laws and regulations of the countries where the business is done.

The course’s objectives are

• to understand the importance of ethics and professional standards when conducting business in the financial sector
• to get a basic knowledge of the regulation and laws
• to understand the main compliance concepts applied in inCorporate &Investment Banks

Part 1. Ethical and Professional Standards

This part offers a pragmatic approach of ethics in finance, pointing out some of the recent issues that emerged since the financial crisis. The course takes as a starting point some of the recent codes of conduct issued by the finance industry as well as CFA Institute® Code of Ethics and Standards of Professional Conduct; it then turns to concrete issues such as rate-rigging, toxic assets or liabilities, product structuring, investor protection, as well as some of the recent regulation. Topics are covered through presentations in class, student presentations, exercises and case studies. Student presentations are delivered individually, in class, under a pre-set format, and are part of the participation grade. As a prerequisite, students must be familiar with CFA Institute® Code of Ethicsandhave prepared an example of a standard violation and corrective action for the firstclass.

Part 2. Global Compliance

Main objectives are giving students a global overview on the main Complianceconcepts applied in a Corporate & Investment Bank and emphasizing the latest trends in regulatory environment. Theoretical courses and practical examples will be exposed to students on the main Compliance and Financial Security themes met in a Corporate & Investment Bank.

• Compliance: privileged information, information barriers, conflicts of interests, market abuse and insider trading, suitability, reputation risk, etc...
• Financial Security: KYC, KYB, and implementation of the European 3rdDirective; embargos, countries on watch lists, combating money laundering, fraud prevention

Plan du cours

Introduction Course: Regulation today-for a better understanding of Ethics and Compliance

Part 1. Ethics and Professional Standards

Session 1 - Definitions of ethics & standards. Ethical decision making

Session 2 - What do Codes of Ethics and Codes of Conduct tell us?

Session 3 - FX and Libor rate-rigging & other Benchmarks

Session 4 - Toxic Assets and Liabilities

Session 5 - Investor Protection, why does it matter

Session 6 - Investor Protection, why does it matter

Session 7 - Market-related issues

Session 8 - Dealing with Retail or Unsophisticated Investors

Part  2. Global Compliance

I - Course Introduction: DEFINING INTERNAL CONTROL & COMPLIANCE

• Why compliance and controls?
• Compliance: trying to find a definition
• Defining Internal control
• Risk mapping methodology

II - Financial Security

• The European Directives: current impact for banks
• Focus on international sanctions: European Council and U.S. (OFAC)

III - Conduct Risk

1. Market Abuse
   • Market manipulation
   • Insider trading
   • Privileged vs confidential information
   • Market abuse prevention rules
   • From MAD1 to MAD2
   • Personal account dealing
2. Reinforcing transparency: focus on the MIFID2 regulation
   • Why and How : MIFID 1
   • From MIFID 1 to MIFID 2
3. Fight against corruption and fraud
   • Fight against corruption (includes new Loi Sapin 2)
   • fraud prevention

Bibliographie

CFA Institute® Code of Ethics and Standards of Professional Conduct.
CFA Institute® Standards of Practice Handbook, 2014 edition.
Lewis, M.,The Big Short, 2011.
Lewis, M., Flash Boys, 2014.
O’ Malley, C., The Story of the Eurobond Markets (ch. 10-11), 2015.
Third AML Directive 2005/60/EC replaced by Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing
Markets in Financial Instruments Directive 2004/39/EC (called MIFID 1) and Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments called MIFID 2
Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives (MAD /MAR 1) replaced by Directive 2014/57/EU (MAD2) on criminal sanctions for market abuse and Regulation No 596/2014 on market abuse (MAR 2)

Examen

Participation and final exam