Ameriprise paid $30 million over undisclosed mutual-fund revenue-sharing conflicts
Company: Ameriprise Financial, Inc.
Summary
The U.S. Securities and Exchange Commission brought settled enforcement proceedings against American Express Financial Advisors Inc., now known as Ameriprise Financial Services, over undisclosed revenue-sharing arrangements involving mutual funds. The SEC found that beginning in 2001 the firm received substantial revenue-sharing payments and directed brokerage commissions from selected mutual-fund families whose products it distributed to customers. The firm did not adequately disclose the conflicts created by those financial incentives. Ameriprise agreed to pay $30 million in disgorgement and civil penalties. The money was placed into a Fair Fund for distribution to affected customers, and the firm agreed to improve disclosures concerning its revenue-sharing program. Primary source: SEC — American Express Financial Advisors, now Ameriprise Financial Services, to Pay $30 Million: https://www.sec.gov/news/press/2005-168.htm