Defendant Name: Ameriprise Financial Services, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Ameriprise Financial, Inc
SIC Code: 6282
CUSIP: 03076C10

Initial Case Details

Legal Case Name In the Matter of Ameriprise Financial Services, Inc.
First Document Date 28-Feb-2018
Initial Filing Format Administrative Action
File Number 3-18381
Allegation Type Broker Dealer

Violations Alleged

Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)

Resolutions

First Resolution Date 28-Feb-2018
Headline Total Penalty and Disgorgement $230,000

Related Documents:

33-10462 28-Feb-2018 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933, and Section 15(b) of the Securities Exchange Act of 1934, and Section 203(e) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
According to the SEC: "From at least January 2010 through June 2015 (the "Relevant Period"), Ameriprise disadvantaged certain retirement plan customers ("Eligible Customers")1 by failing to ascertain that they were eligible for a less expensive share class, and recommending and selling them more expensive share classes in certain open-end registered investment companies ("mutual funds") when less expensive share classes were offered to these Eligible Customers by Ameriprise on its platform. Ameriprise did so without disclosing that it would receive greater compensation from the Eligible Customers' purchases of the more expensive share classes. "
2018-26 28-Feb-2018 Press Release--Administrative Proceeding
SEC Charges Ameriprise With Overcharging Retirement Account Customers for Mutual Fund Shares
According to a press release issued February 28, 2018, "Ameriprise Financial Services Inc. disadvantaged certain retirement account customers by failing to ascertain their eligibility for less expensive mutual fund share classes. Ameriprise recommended and sold these customers more expensive mutual fund share classes when less expensive share classes were available. Ameriprise also failed to disclose that it would receive greater compensation from the purchases and that the purchases would negatively impact the overall return on the customers' investments."