MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, October 27, 2005 Ameriprise Takes $1.25 MM Hit 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. Printed from: MFWire.com/story.asp?s=10727 Copyright 2005, InvestmentWires, Inc. All Rights Reserved |