CSI will be performing system maintenance on Saturday April 13th from 5 a.m. until 1 p.m. ET. You will not have access to your “myCSI” student account, nor will you be able to book, cancel or reschedule exams during this time. You can still access your online course materials by visiting connect.csi.ca then connecting to “Blackboard Learn”.

What will you learn about?

The focus of this course is on Behavioural Finance Micro and it will cover:

  • The types of client actions and biases
  • How to determine certain behavioural investor types
  • The difference between Standard Finance and Behavioural Finance
  • The difference between Behavioural Finance Micro and Macro
  • How Behavioural Finance Micro is integrated closely with the wealth management approach to effectively deal with clients
  • Building deeper client relationships that deliver what the client expects, specifically by using a systematic and repeatable approach to understanding the client’s motivations, irrational behaviours and expectations
  • Creating optimal or best practical allocations for client portfolios by incorporating behavioural biases

What is the course syllabus?

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Lesson 1: Introduction to Behavioural Finance

Section 1

Topics covered in this chapter are:

  • Behavioural Finance Micro versus Behavioural Finance Macro
  • Homo Economicus versus the Behaviourally Biased Human

Section 2

Topics covered in this chapter are:

  • Standard Finance versus Behavioural Finance
  • Efficient Markets versus Irrational Markets

Section 3

Topics covered in this chapter are:

  • Decision Making Under Uncertainty
  • Psychographic Models Used by Behavioural Finance

Lesson 2: Using Behavioural Finance with Private Clients

Section 1

Topics covered in this chapter are:

  • Key Benefits of Behavioural Finance

Section 2

Topics covered in this chapter are:

  • Limitations of Risk Tolerance Questionnaires

Section 3

Topics covered in this chapter are:

  • Ways to Identify Irrational Behaviours in Your Clients

Lesson 3: Introduction to Behavioural Investor Types

Section 1

Topics covered in this chapter are:

  • Identifying Behavioural Investor Types (BITs)

Section 2

Topics covered in this chapter are:

  • Behavioural Investor Types (BITs)
    • Investor Biases Defined
    • Differences Between Cognitive and Emotional Biases
  • Overview of Behavioural Investor Types (Bits)

Lesson 4: Passive Preserver (PP) Behavioural Investor Type

Section 1

Topics covered in this chapter are:

  • Passive Preserver Characteristics

Section 2

Topics covered in this chapter are:

  • Emotional Biases
  • Cognitive Biases

Section 3

Topics covered in this chapter are:

  • Advice for Passive Preservers
  • Introduction to Building Asset Allocations for PP Clients

Lesson 5: Friendly Follower (FF) Behavioural Investor Type

Section 1

Topics covered in this chapter are:

  • Friendly Follower Characteristics

Section 2

Topics covered in this chapter are:

  • Cognitive Biases

Section 3

Topics covered in this chapter are:

  • Advice for Friendly Followers
  • Introduction to Building Asset Allocations for FF Clients

Lesson 6: Independent Individualist (II) Behavioural Investor Type

Section 1

Topics covered in this chapter are:

  • Independent Individualist Characteristics

Section 2

Topics covered in this chapter are:

  • Cognitive Biases

Section 3

Topics covered in this chapter are:

  • Advice for Independent Individualist
  • Introduction to Building Asset Allocations for II Clients

Lesson 7: Active Accumulator (AA) Behavioural Investor Type

Section 1

Topics covered in this chapter are:

  • Active Accumulator Characteristics

Section 2

Topics covered in this chapter are:

  • Emotional Biases
  • Cognitive Bias

Section 3

Topics covered in this chapter are:

  • Advice for Active Accumulators
  • Introduction to Building Asset Allocations for AA Clients

Lesson 8: Creating A Behaviourally Modified Asset Allocation

Section 1

Topics covered in this chapter are:

  • Best Practical Allocations

Section 2

Topics covered in this chapter are:

  • Developing a Best Practical Allocation
    • Recommendation
    • Developing the BMAA
    • BMAA for Clients (BITs) With and Without an SLR

Lesson 9: Putting It All Together

This lesson is about putting together the concepts learned in the first eight lessons in the form of four mini-scenarios involving Ms. Starfish, a hypothetical client.