UNIVERSITY OF RHODE ISLAND

Kingston, Rhode Island

FACULTY SENATE

February 7, 2000

Faculty Senate Curricular Affairs Committee

Three Hundred and Eightieth Report

Proposal for a Bachelor of Science Degree in Business Administration

Major in Financial Services

S E C T I O N I

BACKGROUND INFORMATION

ABSTRACT

The Curricular Affairs Committee approved the proposal for a B.S. degree in Business Administration major in Financial Services and voted to recommend approval at the Class B level (recommends that proposed new programs compete for resources on an equal basis with all other University activities). The proposed major will be offered and administered by the Department of Finance and Insurance. Most of the courses in the proposed major consist of existing courses offered by College of Business Administration and the University. Two new courses to be developed will also serve as elective courses for finance majors as well as majors in accounting and marketing.

BACKGROUND

The University of Rhode Island is widely recognized as having strong programs in business administration.

The proposal for a Bachelor of Science in Business Administration major in Financial Services was reviewed under the process established by the Faculty Senate in 1996-97. Under the review procedures, the CAC served as a coordinating and review committee and asked the Joint Educational Policy Committee and the Council of Deans to review the proposal and make recommendations. The CAC also asked the Budget Office to review the financial implications of the proposal as part of the new procedure.

The proposal was strongly endorsed by the Council of Deans in November. No comments were forthcoming from the Joint Educational Policy Committee within or after the thirty-day review period.

In the Budget Office review, Budget Director Linda Barrett noted that the proposed major "is an extension and refinement of existing instructional effort within the College of Business Administration." In concluding her review, Ms. Barrett stated that "the College of Business Administration can adequately support this program with present resources."

Further, letters in support of the proposal were received from administrators at the Mellon Trust, Fidelity Investments, Keyport Life Insurance Company, Northwest Mutual Life Insurance Company, the RI Economic Development Corporation and from members of the Rhode Island legislature.

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S E C T I O N I I

RECOMMENDATION

The Curricular Affairs Committee approved the following proposal for a new Bachelor of Science Degree in Business Administration major in Financial Services at its meeting of January 31, 2000. It is now presented to the Faculty Senate for approval at the Class B Level - - to compete for resources on an equal basis with all other University activities. The proposal is in the format required by the Board of Governors for Higher Education.

PROPOSAL FOR A BACHELOR OF SCIENCE DEGREE IN BUSINESS ADMINISTRATION WITH A MAJOR IN FINANCIAL SERVICES

A. PROGRAM INFORMATION

1. Name of Institution

University of Rhode Island

2. Department and College

College of Business Administration

3. Title of Proposed Program

Financial Services, Bachelor of Science Degree awarded by the College of Business Administration

4. Intended Date of Initiation

Fall, 2000

5. Anticipated Date of First Degree

June, 2004

6. Intended Location

University of Rhode Island, Kingston Campus

7. Institutional Review and Approval Process

UGPC College of Business Administration 4/6/99

Faculty, College of Business Administration 4/7/99

Dean, College of Business Administration 4/7/99

Curricular Affairs Committee, Faculty Senate 1/31/00

Faculty Senate

President of the University of Rhode Island

8. Summary of Program:

The students in the proposed finance services major may specialize in one of four fields, namely: Financial Planning, Risk Management and Insurance, Mutual Funds, or Banking. All Financial Services Majors are required to take a total of seven financial services related courses, five core courses and two elective courses related to the specific field of specialization. The proposed major will be offered and administered by the Department of Finance and Insurance. Most of the courses in the proposed major consist of existing courses offered by College of Business Administration and the University. New courses that need to be developed include "Topics in Mutual Funds" and "Topics in Bank Management". These courses will also serve as elective courses for finance majors. Other students in the College will also benefit from these courses.

9. Signature of the President

__________________________

Robert L. Carothers

10. Persons to contact during the review

Edward Mazze, Dean College of Business Administration 874-4348	Jane Stich, Assistant Dean College of Business Administration 874-4314
Blair Lord, Vice Provost Academic Programs 874-2447	Ed Boyle, Chair, UAC College of Business Administration 874-4199

Gene C. Lai, Associate Dean College of Business Administration 874-4329

B. Rationale

University of Rhode Island is widely recognized as having strong programs in business administration, which consists of accounting, finance, general business administration, international business, management, management science and information systems, and marketing. All programs are accredited by AACSB. The State of Rhode Island has identified the financial services industry as one of few strategic industries needed in the State. The proposed major will not only provide the RI financial services industry with a highly skilled labor force but also attract new companies to in Rhode Island. It should be noted that the idea of the proposed major was suggested by the Governor's Insurance Development Task Force, the Rhode Island Economic Development Corporation, and Metropolitan Property and Casualty Insurance Company. Letters of support represent the view of legislators (Senators David E. Bates and William V. Irons), banks, mutual fund companies, insurance companies, the Rhode Island Economic Development Corporation, and insurance agents. Sixty surveys were sent to RI business leaders. The response rate was 15 percent.

The survey and its results are as follows.

1. A need exists for a financial services major in the College of Business Administration to provide a highly skilled labor force for the Rhode Island financial services industry.

Low High

1 2 3 4 5

The average score for the above question is 4.9 out of 5.

2. A need exists for a financial services major in the College of Business Administration to provide a highly skilled labor force for Rhode Island economic development such as bringing new companies to domicile in Rhode Island.

Low High

1 2 3 4 5

The average score for the above question is 4.8 out of 5.

3. Your interests in hiring future URI graduates in the financial services major.

Low High

1 2 3 4 5

The average score for the above question is 4.5 out of 5.

C. INSTITUTIONAL ROLE

1. Place within the University

The proposed Bachelor of Science degree in Business Administration with a major in financial services complements the existing programs in the College of Business Administration. For example, it will help marketing majors interested in working with mutual funds, insurance, and other financial services products. The proposed major will also benefit finance and accounting majors.

2. Effects on Other Programs

a. Degree Programs

Enrollments in other BS programs in the College of Business Administration may be affected slightly, however, it is anticipated that total enrollment in the CBA will increase by approximately 20 students. Some students will change from the general business administration major or finance major to the financial services major. The long-term enrollments in the College of Business Administration should stabilize at 400 students a year which is the number of students per class that the College can adequately support with present resources. This program does not anticipate added resources. The proposal intends restructuring existing courses to serve the needs of the students and the State of Rhode Island.

b. Student Numbers in Selected Courses:

This program does not anticipate any significant increase in demand for courses in the General Education Program. The General Education requirements for financial services major are the same as those for other business majors.

D. CONTENT

1. Proposed Catalog Description

Financial Services Major

Students earn a Bachelor of Science in Business Administration with a major in financial services. The major will consist of four concentrations, namely: banking, financial planning, risk management and insurance, and mutual funds. The curriculum also provides the common body of knowledge courses that all other programs in the College of Business Administration require.

2. Program Requirements

Curriculum checksheet is not available on the web. Printed copies may be obtained from the Faculty Senate Office (4-2616)

E. RESOURCES

The financial services program is an extension and refinement of existing instructional effort in the College of Business Administration, and therefore, no major additional instructional needs are anticipated.

F. EVALUATION

The program will be evaluated during its fourth year and as part of the AACSB reaccreditation. The College of Business Administration Undergraduate Affairs Committee will conduct the review and follow guidelines and procedures that are used for evaluating other programs on campus.