Defendant Name:
Ameriprise Financial Services, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Ameriprise Financial, Inc
SIC Code:
6282
CUSIP:
03076C10
Document Reference:
34-82244
Document Details
Legal Case Name
In the Matter of Ameriprise Financial Services, Inc.
Document Name
Order Instituting Administrative and Cease-And-Desist Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-And-Desist Order
Document Date
08-Dec-2017
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
According to the SEC: "From December 2010 through October 2013, in certain client presentations, marketing materials, and other communications, Ameriprise negligently relied on misrepresentations made by F-Squared and falsely stated that: (a) the AlphaSector strategies had a history that dated back to April 2001 and had been in use since then; and (b) the track record had significantly outperformed the S&P 500 Index from April 2001 to September 2008. In fact, no F-Squared or other client assets had tracked the strategy from April 2001 through September 2008. In addition, F-Squared miscalculated the historical performance of AlphaSector from April 2001 to September 2008 by incorrectly implementing signals in advance of when such signals actually could have occurred. As a result of this inaccurate compilation of historical data by F-Squared, Ameriprise advertised the AlphaSector strategies by using hypothetical and back- tested historical performance that was inflated substantially over what performance would have been if F-Squared had applied the signals accurately."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Compliance Related Independent Consultant
Monetary Penalties:
Disgorgement
Individual:
$6,300,000.00
Shared:
Civil Penalty
Individual:
$1,750,000.00
Shared:
Pre-Judgment Interest
Individual:
$700,000.00
Shared:
