Section 1: (Short answer, you may answer using bullet point style or essay style, 2 pts each)
1. Identify 3 ethical/legal matters that may be challenging for CEOs/CFOs. (Ch.1)
2. Identify 3 reasons ethical norms are helpful in addition to regulatory laws. (Ch.1)
3. Identify 3 key ethical issues for companies in the financial services industry. (Ch.2)
4. Identify 3 elements of a fiduciary duty. (Ch.2)
5. Identify 3 fed. agencies whose powers were expanded by the Dodd-Frank Act. (Ch.3/5)
6. Identify 3 predatory lending practices identified by federal regulators. (Ch.3)
7. Identify 3 reforms proposed to address mutual fund scandals. (Ch.4)
8. Identify 3 rules promulgated by SEC regulating personal trading. (Ch.4)
9. Identify 3 elements of fraud. (Ch.5)
10. Identify 3 changes in corporate governance resulting from SOX. (Ch.6)
Section 2: (Answer in essay style, do not use bullet points, 5 pts each)
11. Summarize the most important requirements of the Sarbanes Oxley Act, as it applies to corporate/financial management. Does the law create an appropriate amount of government oversight/regulation, or too much/too little? Does it help prevent similar problems from reoccurring in the future?
12. Explain the concept of a fiduciary duty, specifically as it relates to financial advisors. Do all financial advisors have such a duty? Explain the pros and cons of the current Dept. of Labor policy related to fiduciaries and employee retirement accounts.
13. What are the ethical/legal considerations involved in the illegal insider trading rules under the federal law? Be specific and state the reasons for your answers. Should the law apply to all potential conflicts of interest, including government employees such as politicians, judges, and agency regulators?
14. What are the different types of fee arrangements in use by financial advisers? Discuss pros/cons of each.
15. Is cryptocurrency currently regulated in the U.S.? Should it be? Discuss pros/cons.
