Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Ameriprise Takes $1.25 MM Hit Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, October 27, 2005

Ameriprise Takes $1.25 MM Hit

by: Theresa Sim

The brand-new name of Ameriprise is already showing a bit of tarnish. Ameriprise Financial Advisors will pay $500,000 in NASD-ordered fines and $750,000 in compensation for improper sales of 529 plans, according to a NASD release.

The compensation will go to approximately 500 customers that were advised to purchase non-home-state 529 plans, leading to "substantial lost tax benefits," wrote NASD officials.

According to the NASD, Ameriprise failed to properly supervise sales of 529 plans from May of 2001 to October 2003. Specifically, the firm failed to meet suitability requirements for plan sales. Ameriprise only offered the Wisconsin 529 plan to its customers, despite the existence of approximately 25 in-state plans.

Ameriprise, known then as American Express Financial Advisors, sold more than $625 million in 529 plans during that time. The NASD estimates that 32 percent were to customers in the tax-advantaged states of New Mexico, South Carolina, Illinois, Colorado and West Virginia, and could have received tax deductions for their investments.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use