The company is ranked 245th on the Fortune 500.[3] It is on the list of largest banks in the United States. and was also ranked the 9th largest independent broker-dealer based on assets under management. It is one of the largest financial planning companies in the United States and is among the 25 largest asset managers in the world.[1] It is ranked 8th in long-term mutual fund assets in the U.S., fourth in retail funds in the U.K., and 27th in global assets under management.[citation needed]
Current Operations
The company specializes in retirement-related financial planning for affluent clients. It offers variable annuities and life and disability insurance. It also operates Ameriprise Bank, FSB, which offers a variety of consumer banking and lending products and personal trust and related services. Since 2015, its asset management arm has operated under the name Columbia Threadneedle Investments. The company uses three principal brands for its businesses in the United States: Ameriprise Financial, Columbia Management and RiverSource. [citation needed]
Ameriprise Financial Services, a financial planning and retail distribution subsidiary, is a registered broker-dealer and registered investment adviser. It has an integrated model of comprehensive and personalized financial planning, diversified product manufacturing and affiliated and unaffiliated distribution through its network of financial advisors and registered representatives. The retail products and services that use the Ameriprise Financial brand include those that the company provides through its affiliated advisors (e.g., financial planning, investment advisory accounts, retail brokerage services and banking products) and products and services that it markets directly to consumers).[1]RiverSource is the brand for the company's annuities products and for the protection products issued by the RiverSource Life companies, including life and disability income insurance products.[1]
The company, originally known as Investors Syndicate, was founded in Minneapolis in 1894. By John Tappan founded Investors Syndicate in.[5]
In 1925, West Coast businessman J. R. Ridgway merged his investment firm with Investors Syndicate, and took over as president.[citation needed]
In 1937, upon the death of then 50-year-old J. R. Ridgway from leukemia, 23-year-old J. R. Ridgway, Jr. was appointed president.[5]
In 1940, Investors Syndicate introduced one of the first mutual funds, the Investors Mutual Fund, giving clients new investing options and two advantages: diversification and professional management. In 1949, Investors Syndicate changed its name to Investors Diversified Services, Inc. (IDS).[citation needed]
In 1958, IDS founded the Investors Syndicate Life Insurance and Annuity Company (now known as RiverSource Life Insurance Company).[citation needed]
By the 1960s, Investors Mutual Fund was the largest balanced mutual fund in the world.[citation needed]
In 1974, the IDS Centre (now IDS Center) is opened in downtown Minneapolis as the company's headquarters.[citation needed] In 1979, the Ridgway family sold the last of its ownership interest. IDS became a wholly owned subsidiary of Alleghany Corporation pursuant to a merger.[citation needed]
Effective January 1, 1995, IDS changed its name to American Express Financial Corporation, doing business as American Express Financial Advisors (AEFA).[citation needed]
In October 2003, AEFA acquired London-based Threadneedle Asset Management Holdings. In September 2005, American Express completed the corporate spin-off of AEFA as Ameriprise Financial, Inc., a public company. In September 2006, the company launched Ameriprise Bank, FSB. In February 2008, Threadneedle acquired Invesco Perpetual's full service defined contribution pension business with total assets of £470 million.[6] In November 2008, the company acquired H&R Block Financial Advisors for $315 million, and the asset management firm J. & W. Seligman & Co. for $400 million.[7] In 2009, Ameriprise acquired Standard Chartered Bank's World Express Funds investment funds business, providing Threadneedle with an established Luxembourg-based SICAV platform with over US$2.38 billion worth assets under management.[8]
On April 25, 2011, Ameriprise announced that it was trying to find an "appropriate buyer" for Securities America Financial Corporation to allow its registered representatives to focus on growth opportunities.[14] In November 2011, Ameriprise completed the sale of Securities America to Ladenburg Thalmann Financial Services for $150 million in cash and potential future payments.[15] Securities America traced its roots to Financial Dynamics, an insurance marketing organization founded in 1984 by Steve Wild that had between 10,000 and 12,000 affiliated independent insurance agents. In 1993, Financial Dynamics created Securities America, an independent securities broker/dealer, to use its insurance sales force to offer investment management, financial advice and financial planning through a national network of independent financial advisors. In 1998, Securities America was acquired by American Express and was transferred to Ameriprise as part of the corporate spin-off in September 2005. In 2009, Securities America acquired Brecek & Young Advisors, a California-based broker/dealer.[16] Securities America received the inaugural Practitioner Thought Leadership Award from the Retirement Income Industry Association in 2011.[17]
In January 2012, the company opened services to individuals in India with US$40,000 equivalent minimum income.[18] Ameriprise also established an insurance brokerage entity in India that was licensed to deal in insurance products by India's Insurance Regulatory and Development Authority (IRDA). Ameriprise India established offices in Delhi, Gurgaon, Greater Noida, Mumbai & Pune. In May 2014, Ameriprise shut down the nascent financial planning division in India, citing poor prospects for fee-based advisory services.[19]
In January 2013, the company completed the conversion of its federal savings bank subsidiary, Ameriprise Bank, FSB, to a limited powers national trust bank, which conversion included changing the name of this subsidiary to Ameriprise National Trust Bank.[20]
In May 2022, Ameriprise announced Phoenix- based financial advisory organisation, Phoenix Wealth Management joined Ameriprise financial. The director of Phoenix Wealth Management Christine Gustafson and her team joined the organisation with more than $450 million in client assets, including assets from individuals, family offices and charitable foundations.[25]
Criticism and controversy
In July 2005, New Hampshire reached a $7.4 million settlement with Ameriprise Financial Advisors, alleging the company had violated the law by rewarding their financial advisers for recommending underperforming in-house mutual funds to clients.[26]
In December 2005, Ameriprise agreed to pay a $12.3 million to settle NASD charges relating to favorable treatment allegedly given to some mutual funds in exchange for brokerage business.[27]
In December 2005, the company agreed to pay $15 million to settle charges of market timing by the U.S. Securities and Exchange Commission.[28] The Minnesota Department of Commerce levied $2 million in fines for similar market timing violations and the National Association of Securities Dealers fined Ameriprise an additional $12.3 million for unsuitable share sales.[29] Ameriprise had not revealed which funds were timed, or the names of the people involved and the exact nature of the disciplinary action taken. Morningstar, Inc. temporarily reduced the stewardship grade for Ameriprise's funds, although it did not impact the fund's overall star ratings from that firm.[30]
In September 2006, Securities America reached a $16.3 million settlement with a group of ExxonMobil retirees for failing to supervise an associated broker.[31]
In December 2006, a NASD arbitration panel awarded $9.3 million to three retired American Airlines pilots against Securities America and a formerly associated broker for allegedly mishandling their savings.[32][33]
Also in December 2006, the company settled charges regarding a stolen laptop containing data on an estimated 230,000 customers.[34][35]
On July 11, 2007, the NASD fined Securities America $375,000 for improperly sharing directed brokerage commissions from a mutual fund company with a former Securities America broker.[36]
In September 2008, the company volunteered to pay as much as $33 million to cover investor losses in the Reserve Primary Fund.[37]
On July 10, 2009, the company agreed to pay $17.3 million after the Securities and Exchange Commission (SEC) announced an enforcement action against the company for receiving millions of dollars in undisclosed revenue sharing as a condition for selling certain real estate investment trusts (REITs) to its brokerage customers before the spinoff from American Express.[38][39]
On April 15, 2011, Securities America, Inc. (SAI) and its holding company, Securities America Financial Corporation, entered into settlement agreements related to the sale of private placement securities issued by Medical Capital and Provident Royalties that resulted in a $118 million pre-tax charge in the first quarter of 2011. The charge is in addition to a $40 million pre-tax charge in the fourth quarter of 2010.[40]
In April 2008, the company agreed to pay New Hampshire $3.8 million to settle allegations that its Portsmouth agents forged clients’ signatures to cut corners and increase their income.[41]
In October 2010, Michael Loscalso, a branch manager in West Conshohocken, Pennsylvania who earned $260,000 per year, sued the company after being fired, allegedly for raising serious allegations about the firm’s oversight of brokers.[42]
In March 2015, the company paid $27.5 million to settle a lawsuit that it charged its own employees high fees in funds in its 401(k) program.[43]
In December 2016, the company settled with the U.S. Department of Labor, agreeing to pay $128,200 in back wages for discriminating against 20 black employees by paying them less than similarly situated white workers.[44]
In August 2018, the company paid $4.5 million to settle charges that it failed to safeguard retail investor assets from theft by its representatives after 5 Ameriprise representatives committed fraudulent acts, including forging client documents and stole more than $1 million in client funds over a four-year period.[46]
Related Research Articles
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in 41 countries and more than 75,000 employees, the firm's clients include corporations, governments, institutions, and individuals. Morgan Stanley ranked No. 61 in the 2023 Fortune 500 list of the largest United States corporations by total revenue.
The 2003 mutual fund scandal was the result of the discovery of illegal late trading and market timing practices on the part of certain hedge fund and mutual fund companies.
Financial services are economic services tied to finance provided by financial institutions. Financial services encompass a broad range of service sector activities, especially as concerns financial management and consumer finance.
Fidelity Investments, commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is one of the largest asset managers in the world with $4.3 trillion in assets under management, and, as of December 2022, their assets under administration amount to $10.3 trillion. Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, securities execution and clearance, asset custody, and life insurance.
Putnam Investments (Putnam) is an investment management firm founded in 1937 by George Putnam, who established one of the first balanced mutual funds, The George Putnam Fund of Boston. As one of the oldest mutual fund complexes in the United States, Putnam has over $183 billion in assets under management, 79 individual mutual fund offerings, 96 institutional clients, and over seven million shareholders and retirement plan participants.
The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, investing and related services including consulting, and wealth management advisory services to both retail and institutional clients. It has over 400 branches, primarily in financial centers in the United States and the United Kingdom. It ranks tenth on the list of largest banks in the United States by assets. As of December 31, 2022, it had $7.05 trillion in client assets, 33.8 million active brokerage accounts, 2.4 million corporate retirement plan participants, and 1.7 million banking accounts. It also offers a donor advised fund for clients seeking to donate securities. It was founded in San Francisco, California, and is headquartered in Westlake, Texas.
Raymond James Financial, Inc. is an American multinational independent investment bank and financial services company providing financial services to individuals, corporations, and municipalities through its subsidiary companies that engage primarily in investment and financial planning, in addition to investment banking and asset management. Headquartered in St. Petersburg, Florida, Raymond James is one of the largest banking institutions in the United States.
RiverSource is a U.S.-based investment management and life insurance firm which is a subsidiary of Ameriprise Financial, Inc. RiverSource is made up of RiverSource Investments, RiverSource Annuities, and RiverSource Insurance. The firm is based in Minneapolis, Minnesota.
Columbia Management Group was an investment advisor and sponsor of mutual funds. In 2009, it was acquired by Ameriprise Financial and, in 2015, it was merged into Threadneedle to form Columbia Threadneedle Investments, the asset management subsidiary of Ameriprise.
A registered investment adviser (RIA) is a firm that is an investment adviser in the United States, registered as such with the Securities and Exchange Commission (SEC) or a state's securities agency. The numerous references to RIAs within the Investment Advisers Act of 1940 popularized the term, which is closely associated with the term investment adviser. An investment adviser is defined by the Securities and Exchange Commission as an individual or a firm that is in the business of giving advice about securities. However, an RIA is the actual firm, while the employees of the firm are called Investment Adviser Representatives (IARs).
J. & W. Seligman & Co., founded in 1864, was a prominent U.S. investment bank from the 1860s to the 1920s, until the divestiture of its investment banking arm in the aftermath of the Glass–Steagall Act. The firm was involved in the financing of several major U.S. railroads in the 1870s and the construction of the Panama Canal in the early 1900s. Seligman was also involved in the formation of Standard Oil and General Motors.
Stifel Financial Corp. is an American multinational independent investment bank and financial services company created under the Stifel name in July 1983 and listed on the New York Stock Exchange on November 24, 1986. Its predecessor company was founded in 1890 as the Altheimer and Rawlings Investment Company and is headquartered in downtown St. Louis, Missouri.
Ladenburg Thalmann Financial Services is a diversified financial services company with two primary business lines: independent brokerage and advisory and investment banking and capital markets. The company is engaged in investment banking, equity research, institutional sales and trading, brokerage services, asset management, and trust services. Ladenburg Thalmann Financial Services is based in Miami, Florida. The company has more than 4,000 financial advisors with approximately $125 billion in client assets.
First Command Financial Planning, Inc. is a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), all 50 states, and the District of Columbia. It is a member of the Securities Investor Protection Corporation (SIPC).
James "Jim" Cracchiolo is Chairman and Chief Executive Officer of Ameriprise Financial, Inc., a leading diversified financial services company serving the comprehensive financial planning needs of the mass affluent and affluent. He has held these positions since September 2005, when the company was spun off from American Express. From 2003 to present, he has also been Chairman of Threadneedle Asset Management, a London-based global asset management firm.
Guggenheim Partners is a global investment and advisory financial services firm that engages in investment banking, asset management, capital markets services, and insurance services.
Merrill, previously branded Merrill Lynch, is an American investment management and wealth management division of Bank of America. Along with BofA Securities, the investment banking arm, both firms engage in prime brokerage and broker-dealer activities. The firm is headquartered in New York City, and once occupied the entire 34 stories of 250 Vesey Street, part of the Brookfield Place complex in Manhattan. Merrill employs over 14,000 financial advisors and manages $2.8 trillion in client assets. The company also operates Merrill Edge, a division for investment and related services, including call center counsultancy.
CI Financial is the largest investment management firm by assets under management in Canada. Based in Toronto, Ontario, it offers investment management and wealth management services targeted to high net worth retail investors, as well as brokerage and trading services to portfolio managers and institutional investors. It is considered one of the Big Three investment management companies in Canada, along with Mackenzie Investments and Fiera Capital.
Columbia Threadneedle Investments is an American asset management firm. It is a subsidiary of Ameriprise Financial and operates as its asset management arm.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
US$13.44 billion (2021)
US$5.69 billion (2021)
