SEC Charges Ameriprise Financial with Failure to Safeguard Client Assets
According to a press announcement today, Ameriprise Financial Services Inc. will pay $4.5 million to settle SEC charges that it failed to safeguard retail investor assets from theft by its representatives.
According to the SEC’s order, five Ameriprise representatives committed numerous fraudulent acts, including forging client documents, and stole more than $1 million in retail client funds between 2011 and 2014.
The SEC found that the firm failed to adopt and implement policies and procedures reasonably designed to safeguard investor assets against misappropriation by its representatives.
Ameriprise reportedly fired each of the advisors for misappropriating client funds and has implemented a new system to safeguard clients’ money.
According to the order, Ameriprise reimbursed all impacted clients for the losses they incurred due to the misconduct of the five representatives.
Failure to Supervise
Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that the firm failed to properly supervise its advisors, the firm may be held responsible for the losses in a FINRA arbitration claim.
FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.
If you are concerned about your investments with Ameriprise Financial and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.