Friday, February 06, 2009
It’s Not Business, It’s Personal
If you’ve watched enough underworld crime dramas, then you’ve heard the expression: “hey, it’s business ... it’s not personal.” Someone is doing something to you for BUSINESS reasons, so don’t take it personally.
But what about in 401(k) Land? What if the CFO (and their committee) has done something which results in a monetary damage for breach of fiduciary responsibility. Funds weren’t monitored, there was a prohibited transaction, someone received investment advice from Human Resources and lost a lot of money ... the list goes on. Most CFOs don’t understand that this is a personal liability, not a company issue. In other words, “hey, it’s not business ... it’s personal.”
Everyone with a 401(k) account is in a pretty sour mood right now, and some have been laid off, to boot. People are looking around for someone to blame and there is an awful lot of information on the internet on this subject. If someone decides to come after you with a complaint, it’s best to have your Fiduciary House in order now ... not when you receive mail from the Department of Labor. Contact your vendor or advisor and ask for a fiduciary review to see if you are at risk, before it gets personal.