Ameriprise to Settle Trading Charges

Ameriprise Financial -- the entity spun off by former parent American Express -- and its broker-dealer arm agreed to pay $57.3 million to settle charges of illegal trading and brokerage misconduct.

The Securities and Exchange Commission charged that Minneapolis-based Ameriprise Financial Service, the company's broker-dealer, failed to "adequately" disclose millions in revenue-sharing payments it received from a group of mutual fund companies dating back to 2001.

Two months ago, Ameriprise agreed to pay $15 million to settle charges that it allowed shareholders to execute "market-timing" deals in shares of mutual funds of which the company served as an advisor.Ameriprise Financial Services will pay an additional $30 million to the SEC and $12.3 million to brokerage regulator NASD.

For reprint and licensing requests for this article, click here.
Regulatory actions and programs Accounting standards
MORE FROM ACCOUNTING TODAY