The University of Newcastle, Australia
Available in 2020
Course code

GSBS6517

Units

10 units

Level

6000 level

Course handbook

Description

An understanding of behavioural biases in financial decision-making is essential to the client-adviser relationship in financial planning. The course begins with a review of the risk-return characteristics of different asset classes including human capital and the concept of market efficiency. Irrationality in decision-making will be introduced with an explanation of how cognitive and emotional biases influence individual investment decisions and market prices. This course equips financial planners to understand their own behavioural biases and help clients in dealing with their biases in making financial decisions. Students will use scenario-based learning tools to provide tailored financial advice to clients, taking into consideration their financial goals, demographic attributes, risk profiles, behavioural biases and financial literacy levels.

GSBS6517 Behavioural Finance and Client Relationships is a Financial Adviser Standards and Ethics Authority (FASEA) accredited Bridging Unit for inclusion in the Corporations (Relevant Providers Degrees' Qualifications and Course Standards) Determination 2018 Legislative Instrument.


Availability

Newcastle City Precinct

  • Trimester 2 - 2020

Replacing course(s)

This course replaces the following course(s): GSBS6150. Students who have successfully completed GSBS6150 are not eligible to enrol in GSBS6517.


Learning outcomes

On successful completion of the course students will be able to:

1. Explain the psychological underpinnings of the behaviour of individuals and their effect on investment decisions.

2. Critically analyse the interdependence between human capital and financial capital accumulation.

3. Apply behavioural finance insights to client education and engagement.

4. Provide tailored advice to clients fro diverse risk profiles, demographic backgrounds and financial literacy levels.

5. Effectively communicate financial advice to clients both verbally and in writing.


Content

The course will cover the following content:

  1. Market efficiency and rationality
  2. Prospect theory, framing, and mental accounting
  3. Heuristics, Overconfidence and Emotion
  4. Effect of behavioural biases on financial decisions
  5. Financial education for clients and de-biasing client behaviour
  6. Client engagement and relationship
  7. Understanding clients and providing tailored financial advice

Assumed knowledge

Prior study meeting the RG146 requirement or equivalent


Assessment items

Written Assignment: Market Efficiency, Behvaioural Finance and Investment Decisions (30%)

Quiz: Client Engagement and Relationship (30%)

Case Study / Problem Based Learning: Case Study and Presentation (40%)


Contact hours

Newcastle City Precinct

Workshop

Face to Face On Campus 36 hour(s) per Term Full Term starting in week 1

Intensive face-to-face mode with blended online learning