Corruption and Fraud in Financial Markets

Exam Questions: 120
Course Level: Intermediate
Pages: 462 | Content: 440, Supplemental: 22
NASBA Area of Study: Auditing
Not Acceptable for: Enrolled Agents
Version: 7890A

This course will give you an understanding of potential issues surrounding all types of fraud, misconduct, price/volume manipulation and other forms of malpractice to help prevent your company from falling victim to unethical practices. It will cover detection, prevention, and regulation of corruption and fraud within different financial markets. You'll find details on the many practices that bring potentially devastating consequences, including insider trading, bribery, false disclosure, frontrunning, options backdating, and improper execution or broker-agency relationships. PLEASE NOTE: Course material is a component of #7905, #7910 and #7915; therefore, we recommend that you should not take this course with courses #7905, #7910 or #7915 in the same CPE reporting period. This course is written in British English so some of the spelling and terms reflect the dialect. Not accepted for Enrolled Agents. All course material provided. Prerequisites: Understanding of financial market terms/concepts and advanced mathematical calculations. Course level: Intermediate.

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Course Information

Table of Contents
  • Introduction
  • Overview of Market Manipulation
  • Taxonomy of Financial Market Misconduct
  • Financial Misconduct and Market-Based Penalties
  • Insider Trading and Market Manipulation
  • Financial Fraud and Reputational Capital
  • Manipulative and Collusive Practices in FX Markets
  • Fraud and Manipulation within Cryptocurrency Markets
  • The Integrity of Closing Prices
  • A Trader's Perspective on Market Abuse Regulations
  • Misconduct in Banking: Governance and the Board of Directors
  • Misconduct and Fraud by Investment Managers
  • Options Backdating and Shareholders
  • The Strategic Behavior of Underwriters in Valuing IPOs
  • Governance and Financial Services Outsourcing: Managing Misconduct and Third-Party Risks
  • Identifying Security Market Manipulation
  • The Analytics of Financial Market Misconduct
  • To recall the negative career consequences to managers that engage in market manipulation and financial fraud
  • To identify various forms of market manipulation
  • To recall various schemes and characteristics associated with financial market misconduct
  • To identify the various financial regulations used in the U.S. to combat corporate misconduct
  • To recall the consequences of strict enforcement of laws aimed at preventing financial market abuse
  • To recall the definition of reputational capital
  • To identify the characteristics and impact of the Forex scandal
  • To identify the characteristics of cryptocurrencies
  • To recall the types of stocks that are most prone to portfolio pumping techniques
  • To identify the characteristics of, and potential reasons for, wash trades
  • To recall the three main U.S. banking supervisory authorities
  • To identify the characteristics that have a positive relation to fraud
  • To identify the types of corporate misbehavior also associated with the practice of option grant backdating
  • To identify the most widely used method for valuing firms
  • To recall the reasons given for outsourcing by the respondents of the author's survey of financial institutions
  • To recall the various ways in which a securities market might be manipulated
  • To recall widely used supervised learning techniques for fraud detection

PLEASE NOTE: CPE credit measurement is based on NASBA Registry and QAS guidelines of one credit for every 50 minutes. Credit calculation may vary in different states — check with your State Board of Accountancy. Unless otherwise noted in the specific course description, no advanced preparation is required in order to register or complete any PES CPE course. Use of materials or services provided by Professional Education Services, LP ("PES") are governed by the Terms and Conditions stated on PES' website www.mypescpe.com. PES provides these courses with the understanding that it is not providing any accounting, legal, or other professional advice and assumes no liability whatsoever in connection with its use. PES has used diligent efforts to provide quality information and material to its customers, but does not warrant or guarantee the accuracy, timeliness, completeness, or currency of the information contained herein. Ultimately, the responsibility to comply with applicable legal requirements falls solely upon the individual licensee, not PES. PES encourages you to contact your state Board for the latest information and to confirm or clarify any questions or concerns you have regarding your duties or obligations as a licensed professional.