ETHICS AND RULES IN FINANCE

The course aims at examining the law and economics rationale for capital markets regulation and gives students a framework for understanding how markets are regulated.
A particular focus is on sustainable finance and on the regulatory framework developed to take adequate care of Environmental, Social and Governance (ESG) issues for investment decisions.

After this course, the student is able to:

• understand the reasons underlying the regulation of financial markets;
• Understand the relevance of the law and economics approach to address complex problems;
• apply basic (micro)economic ideas and models to particular legal settings;
• analyze the effect of a law or aspect of the legal system on behavior, and judge which law will lead to better outcomes in a particular setting;
• Apply and develop an interdisciplinary mindset
• Reflect on real-life situations from a different entry point of analysis

The student is expected to have some basic foundational knowledge of both economic theories and legal background

The first part of the course is concerned with the rationale and the reasons for the regulation of financial markets vis-à-vis the law and economics methodology. The program proceeds to consider some specific areas (such as capital requirements and corporate governance) as examples of application of the theories studied in the initial methodological session. Finally, the course focuses on the policy and regulation of financial sustainability.

Collection of papers

The assessment method consists in a written exam made by open questions and mimicking real case situations
Regarding grade grading (mode by which grades will be assigned), regardless of the attending or non-attending mode:
A. scores in the 18-22 range will be awarded in the presence of:
- sufficient knowledge and applied comprehension skills with reference to the syllabus;
- limited ability to collect and/or interpret data, making independent judgments;
- sufficient communication skills, especially in relation to the use of specific language pertaining to the
economic operation of public services;
B. scores in the 23-26 range will be awarded in the presence of:
- fair knowledge and applied comprehension skills with reference to the syllabus;
- discrete ability to collect and/or interpret data, making independent judgments;
- fair communication skills, especially in relation to the use of specific language pertaining to the
economic operation of public services;
C. scores in the 27-30 range will be awarded in the presence of:
- good or very good knowledge and applied comprehension skills with reference to the syllabus;
- good or excellent ability to collect and/or interpret data, making independent judgments;
- fully appropriate communication skills, especially in relation to the use of specific language that
pertaining to the economic operation of public services.
D. honors will be awarded in the presence of applied knowledge and understanding with reference to the
program, judgment and communication skills, excellent.

The course will be a mix of lectures and seminars

English

written