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Ameriprise Financial Services Inc. Settles with SEC Regarding Overcharging Retirees in Mutual Fund Accounts

Posted on Tuesday, March 6th, 2018 at 2:51 pm    

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Erez Law is currently investigating Ameriprise Financial Services Inc. financial advisors across the country who recommended and sold higher-fee mutual fund shares to retirees and failed to provide sales charge waivers.

In February 2018, the Securities and Exchange Commission (SEC) settled charges with Ameriprise Financial Services Inc. for recommending and selling higher-fee mutual fund shares to retail retirement account customers, when less expensive share classes were available, and for failing to provide sales charge waivers. According to the SEC, Ameriprise Financial Services Inc. failed to ascertain 1,791 customers’ eligibility for less expensive mutual fund share classes, resulting in customers paying $1,778,592.31 in unnecessary up-front sales charges, contingent deferred sales charges, and higher ongoing fees and expenses.

The SEC also alleged that Ameriprise Financial Services Inc. 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. As a result of the SEC investigation, Ameriprise Financial Services Inc. voluntarily identified the affected accounts, issued payments including interest to the affected customers, and converted eligible customers to the mutual fund share class with the lowest expenses for which they are eligible, at no cost.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Ameriprise Financial Services Inc. may be liable for investment or other losses suffered by its customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.