Kaplan: It’s Never the Wrong Time to Do the Right Thing

There is never a bad time to do the right thing. In the webcast “Ethics—It Is Never the Wrong Time to Do the Right Thing,” American Retirement Association Director of Technical Education Robert M. Kaplan offers a refresher on the importance of ethics in conducting business and serving clients as a member of the retirement industry. “Just because I can do something doesn’t mean that I should,” he said, adding, “You want to have a reputation of being of good character.”

Confidentiality 

One should know what the policy of one’s organization about confidentiality is, said Kaplan. And not only is it important to respect confidentiality because it is a good thing to do, but also because if one violates confidentiality, “it can come back to haunt you,” he warned.

Kaplan identified two ways in which that could occur: 

1. the client finds out; and 
2. your reputation is hurt. “This is one that could really hurt you,” he said. 

Courtesy and Cooperation

Kaplan stressed the importance of being cooperative with in assembling and transmitting pertinent data and documents, subject to receiving reasonable compensation for the work required to do so, when a client has given consent for a new or additional professional to consult with one. And, he reminded, one must comply with federal law in this regard and must be mindful of this responsibility even when there is a fee dispute, except as state law may dictate. 

Fee Disclosure 

Kaplan reminded attendees of the importance of making “a full and timely disclosure” to a present or prospective client regarding “all sources of direct or indirect material compensation.” He added, “You don’t want the client to be surprised.” 

Integrity 

Kaplan stressed the importance of making sure that the professional services rendered under one’s supervision are performed with honesty, integrity, skill and care. “You try, you do it honestly. If something is wrong, you figure out what to do about it,” he added. 

Qualifications

One should render professional services only when one is qualified to do so based on education, training and experience, Kaplan said. And, he added, “If you don’t have the qualifications and experience, find someone who does.” He added that if one renders a service but makes a mistake through lack of qualifications, saying “‘I think or I thought this was the correct answer’” in the event that something bad happens as result “doesn’t carry very much weight.” 

Email 

Kaplan struck a note of caution concerning use of email. He said that one should “beware what you put in email” and said that one should: 

• assume an email will be read by others;
• remember that an email could be made part of a lawsuit;
• beware of quick responses;
• beware of humor and sarcasm;
• treat communications to clients through email with the same care as one would use in writing a letter; and 
• have someone else look at the email before sending it. 

Virtual Meetings 

Kaplan argued tone one should use the same care with a virtual meeting as one would use in a face-to-face meeting. Be mindful of what the client is seeing when they watch you, and of what the client is hearing. “The mute button can be a great ally,” he suggested. 

Social Media 

Honesty, accuracy and respectfulness are key when using social media, Kaplan argued. One should know the policy of one’s organization about social media, he said, and suggested that one ask oneself: 

• Does the social media policy cover only the employer’s platforms or personal platforms as well?
• Is an opinion yours or the company’s?
• What is the policy about answering professional chat boards or other sites?
• Can what you say affect your employer?

“Perception is reality,” Kaplan warned. 

Current Issues 

Kaplan identified issues that might arise during the COVID-19 crisis:

• knowing that a participant is not a qualified individual for a COVID-related distribution or loan; 
• knowing that a participant does not meet the criteria for a hardship distribution;
• adopting amendments to reflect plan operation;
• whether plan provisions are communicated to all participants; and
• late deferrals or loan repayment deposits.

He struck a stoic note, pointing out, “All of this happened all of a sudden, but we’re still serving retirement plans.” He also suggested, “Imagine looking back—what will you wish you should have done?"