Ameriprise Financial, Inc. is a diversified

financial services Financial services are the Service (economics), economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, acco ...

company and

bank holding company A bank holding company is a company that controls one or more banks, but does not necessarily engage in banking itself. The compound bancorp (''banc''/''bank'' + '' corp ration') is often used to refer to these companies as well. United States ...

incorporated in

Delaware Delaware ( ) is a state in the Mid-Atlantic region of the United States, bordering Maryland to its south and west; Pennsylvania to its north; and New Jersey and the Atlantic Ocean to its east. The state takes its name from the adjacent Del ...

and headquartered in

Minneapolis, Minnesota Minneapolis () is the largest city in Minnesota, United States, and the county seat of Hennepin County. The city is abundant in water, with thirteen lakes, wetlands, the Mississippi River, creeks and waterfalls. Minneapolis has its origins ...

. It provides financial planning products and services, including

wealth management Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-high- ...

asset management Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

annuities In investment, an annuity is a series of payments made at equal intervals.Kellison, Stephen G. (1970). ''The Theory of Interest''. Homewood, Illinois: Richard D. Irwin, Inc. p. 45 Examples of annuities are regular deposits to a savings account, mo ...

, and

estate planning Estate planning is the process of anticipating and arranging, during a person's life, for the management and disposal of that person's estate during the person's life, in the event the person becomes incapacitated and after death. The planning inc ...

. As of April 2022, more than 80% of the company's revenue came from

. The company's primary subsidiaries include Ameriprise Financial Services,

RiverSource Life Insurance Company RiverSource (RiverSource Life Insurance Company) is a US-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 R ...

, and

Columbia Threadneedle Investments Columbia Threadneedle Investments is an American asset management firm. It is a subsidiary of Ameriprise Financial and operates as its asset management arm. History Columbia Threadneedle was formed in 30 March 2015 as the result of a merger bet ...

, its global asset management brand, and a provider of investments to institutional and retail clients. Ameriprise was formerly a division of

American Express American Express Company (Amex) is an American multinational corporation specialized in payment card services headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City. The company was found ...

, which completed the

corporate spin-off A corporate spin-off, also known as a spin-out, or starburst or hive-off, is a type of corporate action where a company "splits off" a section as a separate business or creates a second incarnation, even if the first is still active. Characte ...

of the company in September 2005. The company is ranked 245th on the

Fortune 500 The ''Fortune'' 500 is an annual list compiled and published by ''Fortune'' magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. The list includes publicly held companies, along ...

. It is on the

list of largest banks in the United States The following table lists the 100 largest bank holding companies in the United States ranked by total assets of June 30, 2022 per the Federal Financial Institutions Examination Council; their market capitalization is also shown. This list does not ...

. It is also the 9th largest independent

broker-dealer In financial services, a broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and d ...

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. 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.

Operations

The company specializes in

retirement Retirement is the withdrawal from one's position or occupation or from one's active working life. A person may also semi-retire by reducing work hours or workload. Many people choose to retire when they are elderly or incapable of doing their j ...

-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 operates under the name

. The company uses three principal brands for its businesses in the United States: Ameriprise Financial, Columbia Management and RiverSource. The Threadneedle brand is used for its international asset manager's products. 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). 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.

Columbia Threadneedle Investments

Ameriprise advisors

Ameriprise Financial has more than 9,700 branded advisors, the 5th largest branded advisor force in the U.S.

History

The company, originally known as Investors Syndicate, was founded in

Minneapolis Minneapolis () is the largest city in Minnesota, United States, and the county seat of Hennepin County. The city is abundant in water, with thirteen lakes, wetlands, the Mississippi River, creeks and waterfalls. Minneapolis has its origins ...

in1894 by John Tappan. In 1925,

West Coast West Coast or west coast may refer to: Geography Australia * Western Australia *Regions of South Australia#Weather forecasting, West Coast of South Australia * West Coast, Tasmania **West Coast Range, mountain range in the region Canada * Britis ...

businessman J. R. Ridgway merged his investment firm with Investors Syndicate, and took over as president. In 1937, upon the death of then 50-year-old J. R. Ridgway from

leukemia Leukemia ( also spelled leukaemia and pronounced ) is a group of blood cancers that usually begin in the bone marrow and result in high numbers of abnormal blood cells. These blood cells are not fully developed and are called ''blasts'' or ' ...

, 23-year-old J. R. Ridgway, Sr. was appointed president. In 1940, Investors Syndicate introduced one of the first

mutual fund A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV i ...

s, the Investors Mutual Fund, giving clients new investing options and two advantages: diversification and professional management. By the 1960s, Investors Mutual Fund was the largest balanced mutual fund in the world. In 1949, Investors Syndicate changed its name to Investors Diversified Services, Inc. (IDS). In 1958, IDS founded the Investors Syndicate Life Insurance and Annuity Company (now known as RiverSource Life Insurance Company). In 1974, the IDS Centre (now

IDS Center The IDS Center is an office skyscraper located at 80 South 8th Street in Minneapolis, Minnesota. Completed in 1972, it is the tallest building in Minneapolis, and the tallest building in the state at a height of . It originally stood , thou ...

) is opened in downtown Minneapolis as the company's headquarters. In 1979, the Ridgway family sold the last of its ownership interest. IDS became a wholly owned subsidiary of

Alleghany Corporation Alleghany Corporation is an American investment holding company originally created by the railroad entrepreneurs Oris and Mantis Van Sweringen as a holding company for their railroad interests. It was incorporated in 1929 and reincorporated ...

pursuant to a

merger Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...

. In 1984,

acquired IDS Financial Services from Alleghany Corporation. In 1986, IDS acquired Wisconsin Employers Casualty Company of

Green Bay, Wisconsin Green Bay is a city in the U.S. state of Wisconsin. The county seat of Brown County, it is at the head of Green Bay (known locally as "the bay of Green Bay"), a sub-basin of Lake Michigan, at the mouth of the Fox River. It is above sea lev ...

and renamed it IDS Property Casualty Insurance Company. In 1994, IDS reached $100 billion in assets. Effective January 1, 1995, IDS changed its name to American Express Financial Corporation, doing business as American Express Financial Advisors (AEFA). In October 2003, AEFA acquired London-based

Threadneedle Asset Management Columbia Threadneedle Investments is an American asset management firm. It is a subsidiary of Ameriprise Financial and operates as its asset management arm. History Columbia Threadneedle was formed in 30 March 2015 as the result of a merger bet ...

Holdings. In September 2005, American Express completed the

of AEFA as Ameriprise Financial, Inc., a

public company A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (l ...

. 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. 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. In August 2011, Threadneedle announced the acquisition of the £8 billion in investment assets of LV=. In November 2008, the company acquired

H&R Block H&R Block, Inc., or H&R Block, is an American tax preparation company operating in Canada, the United States, and Australia. The company was founded in 1955 by brothers Henry W. Bloch and Richard Bloch. As of 2018, H&R Block operates approximat ...

Financial Advisors for $315 million, and the asset management firm J. & W. Seligman & Co. for $400 million. During the

Great Recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...

, the company declined an investment by the

United States Department of the Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...

under the

Troubled Asset Relief Program The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by Congress and signed into law by President G ...

. In May 2010, Ameriprise Financial acquired Columbia Management, the long-term asset management business of

Bank of America The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank w ...

, for $1 billion. 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. In November 2011, Ameriprise completed the sale of Securities America to Ladenburg Thalmann Financial Services for $150 million in cash and potential future payments. 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

in September 2005. In 2009, Securities America acquired Brecek & Young Advisors, a California-based broker/dealer. Securities America received the inaugural Practitioner Thought Leadership Award from the Retirement Income Industry Association in 2011. In January 2012, the company opened services to individuals in India with US$40,000 equivalent minimum income. 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 The Insurance Regulatory and Development Authority of India (IRDAI) is a regulatory body under the jurisdiction of Ministry of Finance , Government of India and is tasked with regulating and licensing the insurance and re-insurance industrie ...

(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. 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. In 2015, Threadneedle rebranded as Columbia Threadneedle. In 2017, the company acquired Investment Professionals, Inc. In 2019, the company sold

Ameriprise Auto & Home Insurance Connect (stylized as CONNECT, powered by American Family Insurance) is an insurance company located in De Pere, Wisconsin. Connect provides auto, home, condo, renters, umbrella (personal liability) and specialty products (through an in-house agen ...

American Family Insurance American Family Insurance, also abbreviated as AmFam, is an American private mutual company that focuses on property, casualty, and auto insurance, and also offers commercial insurance, life, health, and homeowners coverage as well as investmen ...

for $1.05 billion. 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.

Criticism and controversy

In July 2005,

New Hampshire New Hampshire is a U.S. state, state in the New England region of the northeastern United States. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Gulf of Maine to the east, and the Canadian province of Quebec t ...

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. 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. In December 2005, the company agreed to pay $15 million to settle charges of

market timing Market timing is the strategy of making buying or selling decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from ...

by the

U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

. The Minnesota Department of Commerce levied $2 million in fines for similar market timing violations and the

National Association of Securities Dealers The Financial Industry Regulatory Authority (FINRA) is a private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets. FINRA is the successor to the National Associati ...

fined Ameriprise an additional $12.3 million for unsuitable share sales. 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. Morningstar, Inc. is an American financial services firm headquartered in Chicago, Illinois and was founded by Joe Mansueto in 1984. It provides an array of investment research and investment management services. With operations in 29 countries, ...

temporarily reduced the stewardship grade for Ameriprise's funds, although it did not impact the fund's overall star ratings from that firm. In September 2006, Securities America reached a $16.3 million settlement with a group of

ExxonMobil ExxonMobil Corporation (commonly shortened to Exxon) is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller's Standard Oil, and was formed on November 30, ...

retirees for failing to supervise an associated broker. In December 2006, a NASD arbitration panel awarded $9.3 million to three retired

American Airlines American Airlines is a major airlines of the United States, major US-based airline headquartered in Fort Worth, Texas, within the Dallas–Fort Worth metroplex. It is the Largest airlines in the world, largest airline in the world when measured ...

pilots against Securities America and a formerly associated broker for allegedly mishandling their savings. Also in December 2006, the company settled charges regarding a stolen laptop containing data on an estimated 230,000 customers. 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. In September 2008, the company agreed to pay as much as $33 million to cover investor losses in the

Reserve Primary Fund The Reserve Primary Fund was the original money market fund, created in 1970 by Bruce R. Bent and Henry B. R. Brown and managed by Reserve Management Company. At its peak it held more than $60 billion in assets. During the financial crisis of 2007- ...

. On July 10, 2009, the company agreed to pay $17.3 million after the

Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

(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 trust A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping cente ...

s (REITs) to its brokerage customers before the spinoff from American Express. 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 Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors. Generally, these investors include friend ...

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. In April 2008, the company agreed to pay

$3.8 million to settle allegations that its Portsmouth agents forged clients’ signatures to cut corners and increase their income. In October 2010, Michael Loscalso, a branch manager in

West Conshohocken, Pennsylvania West Conshohocken is a borough in Montgomery County, Pennsylvania, United States. The population was 1,320 at the 2010 census. Its sister community is Conshohocken, located across the Schuylkill River. Montgomery County's seat, Norristown, is lo ...

who earned $260,000 per year, sued the company after being fired, allegedly for raising serious allegations about the firm’s oversight of brokers. 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) In the United States, a 401(k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401(k) of the U.S. Internal Revenue Code. Periodical employee contributions come directly out of their ...

program. In December 2016, the company settled with the

U.S. Department of Labor The United States Department of Labor (DOL) is one of the United States federal executive departments, executive departments of the federal government of the United States, U.S. federal government. It is responsible for the administration of fede ...

, agreeing to pay $128,200 in back wages for discriminating against 20 black employees by paying them less than similarly situated white workers. In February 2018, the company paid $230,000 to settle allegations by the

that it put customers into higher fee funds. 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.

Operations

Columbia Threadneedle Investments

Ameriprise advisors

History

Criticism and controversy

References

External links