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Regulatory Orders Ameriprise Financial to Pay More than $2,500,000 to Damaged Customers

AmeripriseRegulatory Orders Ameriprise Financial to Pay More than $2,500,000 to Damaged Customers

Regulators reviewing the recommendations of Ameriprise Financial advisors, especially concerning non-traded REITS, ordered that the firm pay $6 million in restitution to settle with the state of Massachusetts because the firms improperly sold non-traded real estate investment trusts (REITs). A meriprise agreed to pay a $400,000 fine and make $2.59 million in restitution to investors. (Case No. E-2013-0045)

Non-traded REITS pose a real threat to most ordinary investors who are sold these complex products in their accounts. Because they are non-traded, there is no easy to know liquid price for the investment. They are difficult to sell because they are not traded. Because the current value is difficult to know, too often investors have sustained serious losses which were not earlier reflected on the brokerage firm statements. Recent changes to rules require better valuations on reporting statements rather than literally just the purchase price of the REIT.

Ameriprise Financial Fined More than $57 Million for Market Timing Violations.

Ameriprise Financial settled with both the Securities and Exchange Commission (SEC) and the NASD for total fines of $57.3 million for directed-brokerage, market-timing and revenue-sharing violations. These were serious violations that were widespread in the financial advice industry. The SEC fined Ameriprise $15 million in disgorgement and civil penalties for allowing certain shareholders to market time the American Express Funds when the fund’s prospectus specifically forbids market timing. (In the Matter of Ameriprise Financial Services, Inc.)

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