Dealing with Investment Errors

March 19, 2013
No professional investment adviser would intentionally make a trade or investment error. However, such errors occur from time to time. Formulating an appropriate response to investment errors can be challenging for investment advisers, not only because there is no universally accepted definition of “investment error,” but also because there is no bright line rule for identifying, rectifying or reimbursing advisory clients for investment errors. This lack of uniform approach to error identification and remediation provides investment advisers with some flexibility to develop policies for addressing investment errors, as long as those policies adhere to certain guiding principles and are appropriately disclosed. To keep reading, download the full article.