For Immediate Release - October 22, 2009

Attorney General Martha Coakley Reaches Agreement with Ameriprise Financial Services Company

BOSTON - Attorney General Martha Coakley's Office reached an agreement with Minnesota-based Ameriprise Financial Services, Inc., resolving allegations of unfair sales practices in Massachusetts. The Attorney General's Office filed an Assurance of Discontinuance in Suffolk Superior Court yesterday under the Consumer Protection Act under which Ameriprise has agreed to pay $200,000 to the Commonwealth, adhere to a variety of conduct rules going forward relating to the company's sales practices, and make restitution to any Massachusetts customers that the Attorney General's Office may identify in the future relating to the alleged conduct by six of its financial advisors.

The settlement resolves allegations relating to Ameriprise's failure to supervise certain Ameriprise advisors in connection with its business practices. As part of its investigation, the Attorney General's Office found that certain Ameriprise advisors engaged in unfair and deceptive practices, and in some instances charged customers for undelivered financial plans, failed to disclose fees for financial plans, forged client signatures on transactions, and sold unsuitable mutual funds and insurance products to Massachusetts customers.

"We are pleased that Ameriprise has resolved this issue with our office," said Attorney General Coakley. "It is imperative that employers statewide be vigilant when it comes to supervising their employees to ensure that they are playing by the rules and that consumers are not taken advantage of."

Under the terms of the settlement, Ameriprise has agreed to implement rules to prevent future misconduct by financial advisors and promote sufficient supervisory procedures. An ongoing review by the Attorney General's Office will continue to monitor Ameriprise's sales practices going forward in order to protect Massachusetts consumers.

This matter was handled by Assistant Attorney General Amita Singh with assistance from Legal Analyst Hanne Walker of Attorney General Coakley's Insurance and Financial Services Division.

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