Investment errors occur from time to time. We'll consider how policies and advisory agreements can assist a firm to define and identify errors, resolution and methods of reimbursement, the role of a fiduciary, and contractual duties on liability in shaping these concepts and outcomes. We'll also touch on communication of errors to clients and regulators, and the knock-on effect of regulatory changes for investment advisers (such as the guidance on the investment adviser standard of conduct) and trends in the industry (towards hybrid forms of advice and model portfolios). Having an approach and a plan to handle investment errors allows a firm to manage this risk and strengthen their control environment, and shift from potential liability to resolution more effectively.