Wealth Management

Applying Behavioural Finance to the Wealth Management Process


This course consists of three modules on behavioural finance. It aims to cover the important concepts underlying behavioural finance, the impact it may have on investment performance (e.g. behavioural biases) and the actions that a private wealth manager may take to remedy these issues (including strategies such as client profiling, portfolio construction, and advisory lifecycle).


On completing this course, you should be able to:
a. Understand the definition of behavioural finance and its purpose for private wealth management (“PWM”) and investment management;
b. Illustrate with an example how loss aversion and risk aversion may affect customers;
c. Identify the potential impact of behavioural biases on investor decision process and customer investment performance; and
d. Apply strategies to deal with customer biases, including risk profiling process, risk evaluation and portfolio construction and risk management.


Module 1 - Behavioural Finance and Prospect Theory
Background of Behavioural Finance
Prospect Theory

Module 2 - Behaviourial Biases
Behaviourial Biases Types and Financial Market Dynamics
Customer Biases in the Advisory Lifecycle

Module 3 - Strategies to Deal with Customer Biases
Dealing with Customers Biases
Customer Profiling Strategies
Portfolio Planning and Implementation Strategies
Monitoring and Review Strategies

Final Assessment
- 12 questions with a pass mark of 80% (i.e. need to get at least 10 questions correct in order to pass the assessment)

Who should attend

It is relevant to those PWM practitioners who would like to enhance their knowledge and skills in wealth management.


Relevant Subject
Type 1 - Dealing in securities
Type 2 - Dealing in futures contracts
Type 3 - Leveraged foreign exchange trading
Type 4 - Advising on securities
Type 5 - Advising on futures contracts
Type 6 - Advising on corporate finance
Type 7 - Providing automated trading services
Type 8 - Securities margin financing
Type 9 - Asset management
Type 10 - Providing credit rating services
Type 11 - Dealing in OTC derivative products or advising on OTC derivative products
Type 12 - Providing client clearing services for OTC derivative transactions
SFC:1.50, PWMA:1.50
All Member: HK$450
Staff of Corporate Member: HK$450
Non-Member: HK$900