The Securities and Exchange Commission (SEC) said a Minnesota-based broker-dealer and investment adviser has agreed to settle charges for
overcharging customers.
Officials said Ameriprise Financial Services Inc. disadvantaged certain retirement account customers by failing to ascertain their eligibility for less expensive mutual fund share classes, recommending and selling more expensive mutual fund share classes when less expensive share classes were available.
The SEC said Ameriprise cooperated and voluntarily identified the affected accounts, issued payments, including interest to the affected customers and converted eligible customers to the mutual fund share class with the lowest expenses for which they are eligible, at no cost.
“Ameriprise generated greater revenue for itself but lower returns for its retirement account customers by recommending higher-fee share classes,” Anthony S. Kelly, co-chief of the SEC Enforcement Division’s Asset Management Unit, said. “As evidenced by our recently announced Share Class Selection Disclosure Initiative, pursuing these types of actions remains a priority for the Division as we seek to get money back in the hands of harmed investors.”
Officials said approximately 1,791 customer accounts paid a total of $1,778,592.31 in unnecessary upfront sales charges, contingent deferred sales charges, and higher ongoing fees and expenses as a result of Ameriprise’s practices.