Ameriprise Financial Services, LLC (“Ameriprise”) (CRD#: 6363) has faced numerous complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors over the years.
If you’ve lost money with Ameriprise or one of its financial advisors, you may have legal options to recover your losses. The firm’s documented history of regulatory violations, supervisory failures, and customer complaints suggests a pattern of misconduct that has harmed many investors. You don’t have to accept these losses—investors can pursue claims through FINRA arbitration to hold Ameriprise accountable.
At the Law Offices of Robert Wayne Pearce, our investment fraud attorneys have investigated Ameriprise Financial Services complaints, its regulatory problems, and have represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors. Time limits apply to filing claims, so taking action promptly is critical to protecting your rights.
Can I Sue Ameriprise Financial Services, LLC?
If you’ve lost money caused by Ameriprise and/or its employees’ misconduct then the answer is, YES, you can sue Ameriprise but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has extensive personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Ameriprise in FINRA arbitration proceedings, but WIN that arbitration.
How to Sue Ameriprise Financial Services for Investment Losses
Suing Ameriprise for investment losses typically involves filing a claim through FINRA arbitration rather than traditional court because most brokerage account agreements contain mandatory arbitration clauses. This process allows investors to present their case before a panel of arbitrators who review evidence of misconduct and determine appropriate compensation.
What Can I Do If I Lost Money at Ameriprise?
If you lost money at Ameriprise, you can file a FINRA arbitration claim to pursue recovery of your losses. The documented regulatory violations listed on this page—including the $50 million SEC recordkeeping penalty, cash sweep litigation alleging billions in lost interest, and repeated failures to supervise representatives—demonstrate systemic problems that may have directly impacted your investments.
The arbitration process works like this: you file a Statement of Claim describing what happened, Ameriprise responds, and both sides present evidence at a hearing. Arbitrators then issue a binding decision. This process typically takes 12-18 months and doesn’t require you to go to court, making it more accessible than traditional litigation.
Even if you signed an arbitration agreement when opening your account, this actually works in your favor—it means Ameriprise cannot drag your case through years of court delays. The same agreement that prevents you from suing in court gives you a direct path to hold them accountable through FINRA’s established arbitration forum.
Who Can Help Me Sue Ameriprise Financial?
An experienced securities arbitration attorney can help you sue Ameriprise Financial through the FINRA arbitration process. The Law Offices of Robert Wayne Pearce has handled numerous cases against Ameriprise involving supervisory failures, unsuitable investment recommendations, and conversion of client funds—the same types of violations documented in the firm’s regulatory history. A knowledgeable attorney can evaluate your specific losses, identify the applicable claims, and build a compelling case for recovery.
What is Ameriprise Financial Services, LLC?
Ameriprise Financial Services, LLC is one of the largest broker-dealer and investment advisory firms in the United States, with roots dating back to 1972 when it operated as American Express Financial Advisors, Inc. The company is controlled by AMPF Holding, LLC and headquartered in Minneapolis, Minnesota with multiple affiliates and offices throughout the United States.
Its independent broker-dealer Business Model has grown through acquisition and organic development of primarily one and two person registered representative offices supervised remotely. Today there are over 180 branch offices with over 12,000 registered representatives in every state. It is one of the top ten largest broker-dealer and investment advisory firms in the United States.
Ameriprise In Trouble – Latest News
Yes, Ameriprise faces significant regulatory troubles with $440.5 million in total penalties since 2000 and mounting legal challenges. The Minneapolis-based financial giant paid $50 million to the SEC in August 2024 for recordkeeping violations and faces multiple class-action lawsuits alleging breach of fiduciary duty on cash sweeps paying just 0.3% interest versus 5% market rates.
Recent Ameriprise Complaints and Regulatory Problems
- Cash Sweep Litigation (November 2024): Multiple class-action lawsuits filed alleging Ameriprise breached fiduciary duties by paying clients 0.0%-0.3% interest on swept cash while earning $3.07 billion in net interest income, causing over $2 billion in lost interest to customers.
- SEC Recordkeeping Violations (August 2024): Ameriprise agreed to pay $50 million penalty for widespread failures to preserve electronic communications on WhatsApp and other messaging apps.
- LPL Recruiting Lawsuit (July 2024): Ameriprise filed federal lawsuit against LPL Financial alleging systematic misappropriation of confidential client data and trade secrets during advisor transitions.
Why Does Ameriprise Have So Many Bad Reviews and Customer Complaints?
Ameriprise has accumulated so many bad reviews and customer complaints primarily because of its independent broker-dealer business model, which creates gaps in supervision that allow misconduct to go undetected. Unlike traditional brokerage firms with full-service branch offices staffed by on-site managers and compliance personnel, Ameriprise operates through a franchise-type structure designed to minimize costs.
Financial advisors at Ameriprise typically work as independent contractors from small, often one or two-person offices. These offices are supervised remotely by other independent contractors operating “Offices of Supervisory Jurisdiction” (OSJs) who are frequently running their own businesses and cannot monitor day-to-day activities. This means no one is immediately reviewing new accounts, transactions, cash movements, or client correspondence as they happen.
The result is that forgeries, misleading statements, and unsuitable investment recommendations can go undetected for months or years. The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at these independent broker-dealer firms than at traditional brokerage firms with on-site supervision.
Examples of Regulatory Problems and Complaints for Ameriprise Financial Services, LLC
Ameriprise’s rapid growth has not been without consequences. There have been over 137 Federal, state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA)) for a violation(s) of investment-related rules or regulations. In addition, there have been thousands of customer complaints filed against Ameriprise for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Ameriprise is a repeat offender: there are over 17 FINRA reported disciplinary proceedings citing the firm with one form of supervisory lapses or another in the last decade.
A BRIEF OVERVIEW OF SOME OF THE REGULATORY PROBLEMS AMERIPRISE FINANCIAL SERVICES, LLC HAS FACED OVER THE YEARS*
Ameriprise has been repeatedly censured, warned, and fined millions for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
Ameriprise Fined And Censured For Municipal Bond Trading Violations
The FINRA Department of Market Regulation’s Municipal Securities Bonds Team and the Department of Member Regulation (collectively, the “staff’) reviewed the firm’s municipal securities trading for compliance with Municipal Securities Rulemaking Board (“MSRB”) requirements and found the firm violated MSRB Rules G-15(f) and G-19, related disclosure requirements under MSRB Rules G-17 and G-47, and related supervisory requirements under MSRB Rule G-27. FINRA found Ameriprise effected municipal bond transactions in amounts below the minimum denomination set for the bonds. The firm recommended transactions limited the sale/resale of such securities to Qualified Institutional Buyers (“QIBs”), as defined in Rule 144A of the Securities Act of 1933 to customers who were not QIBs. Additionally, the firm failed to disclose to customers at or prior to the time of the trade that the transaction was being effected in an amount below the minimum denomination and of the above sales restriction. The firm also had an insufficient supervisory system reasonably designed to achieve compliance with the MSRB’s rules regarding minimum denomination and the suitability of recommendations to customers.
Ameriprise Fined And Censured For Short Term Closed End Fund Trading Violations
Ameriprise participated in the sale of initial public offerings of Closed End Funds (“CEFs”) which are generally intended for use as long-term investments. Sales charges to the customers who purchased at the time of the initial public offering (IPO”) are built into the offering price of the CEF; in most cases, the market price of the CEFs generally declines after the initial offering. Despite being aware that CEFs purchased at the IPO offering were most suitable for long-term investments and that the sales charges applied to purchases at the IPO made short-term trading of these CEFs generally unsuitable. Ameriprise failed to establish and maintain a supervisory system reasonably designed to detect and prevent at least one of its registered representatives from engaging in unsuitable short-term trading of CEFs purchased at the IPO.
Ameriprise Censured And Fined For Failure To Prevent Conversion Of Customers Funds
Ameriprise was sanctioned by FINRA for failing to detect and prevent the conversion, via wire transfers of customers’ funds by its registered representatives. The conversion went undetected for two years because Ameriprise failed to establish, maintain, and enforce a supervisory system that was reasonably designed to adequately review and monitor the transmittal of funds from accounts of customers to third parties, including those controlled by registered representatives of the firm. This was the second time Ameriprise was sanctioned by FINRA for failure to prevent conversion of customer funds. Once again, Ameriprise violated NASD Rules 3010 and 3012 and FINRA Rule 2010 for failing to detect conversion of customer funds.
Ameriprise Censured And Fined For Not Sending Account Records To Customers
FINRA investigated and found Ameriprise failed to create and send to approximately 219,000 customers an account record within 30 days of the account opening for each of these customers and therefore violated SEC Rule 17a-3, former NASD Rule 3110 (now FlNRA Rule 4511) and FINRA Rule 2010. In addition, in violation of NASD Rule 3010 and FINRA Rule 2010, Ameriprise failed to establish, maintain, and enforce a supervisory system and written supervisory procedures reasonably designed to ensure compliance with applicable laws and regulations relating to the creation and distribution of account records at account opening.
Ameriprise Fined And Censured For Failure To Deliver Prospectuses
Another FINRA investigation found that Ameriprise failed to timely deliver mutual fund prospectuses to Ameriprise customers within three business days of their purchases in approximately 580,000 transactions (approximately 4% of the mutual fund purchase transactions that required Ameriprise to deliver a mutual fund prospectus within three business days). Consequently, FINRA concluded Ameriprise failed to establish and maintain adequate supervisory systems and written supervisory procedures reasonably designed to monitor and ensure the timely delivery of mutual fund prospectuses, as required by Section 5(b)(2) of the Securities Act of 1933 (“the Securities Act”). As a result of these failures, Ameriprise violated NASD Conduct Rules 3010(a)(1) and (b)(1), and FINRA Rule 2010.
Ameriprise Sanctioned For Failing To Detect Forgeries Of Customers Signatures And Prevent Theft
FINRA investigated and found that a Ameriprise registered representative converted approximately hundreds of thousands of dollars from two customers by forging signatures and submitting false wire requests to move funds from these customers’ brokerage accounts directly to bank accounts that the Ameriprise representative controlled. In failing to detect this misconduct for nearly four years, FINRA concluded missed numerous supervisory red flags. Consequently, FINRA found and concluded that Ameriprise did not have supervisory systems that were reasonably designed to adequately review and monitor the transmittals of funds from customer accounts to third-party accounts. Through this conduct, Ameriprise violated NASD Conduct Rules 3010, 3012 and 2110 and FINRA Rule 2010. Further, FINRA found that Ameriprise did not properly protect customer records and information. Through this conduct, AFSI violated Rule 30 of Regulation S-P, NASD Conduct Rule 3010 and FINRA Rule 2010.
Ameriprise Sanctioned For Variable Annuity Sales Abuse
One of Ameriprise’s subsidiaries, H&R Block Financial Advisors, employed representatives who executed unsuitable variable annuity switches involving multiple customers. Variable annuity switching involves using the proceeds from the liquidation of one variable annuity to purchase a new variable annuity issued by a different annuity company resulting in the imposition of contingent deterred sales charges or surrender charges and new and extended surrender periods. The customers received no significant benefit from these transactions, since the variable annuities purchased were not substantially different from those they replaced. Accordingly, FINRA found that Ameriprise through its subsidiary, H&R Block Financial Advisors, violated NASD Rules 2310 and 2110.
FINRA Sanctions Ameriprise For Proprietary Product Sales Incentive Programs
FINRA investigated and found Ameriprise awarded non-cash compensation to employees through sales incentive programs, based, in part, on criteria that favored or gave additional weight to the sale of the firm’s proprietary mutual funds. These employees were awarded trips and credits to redeem for jewelry. The firm also awarded certain employees long-term incentive awards in the form of stock options and restricted stock awards based, in part, on the results of those sales. FINRA found the incentive programs were not based on the total sales of associated persons with respect to all investment company securities distributed by Ameriprise. These incentive programs also failed to give equal weight to the sale of all investment company products. Accordingly, the non-cash compensation incentive programs used by Ameriprise violated NASD Rules 2830(l)(5)(D)(i) and (ii) and 2110.
FINRA Sanctioned Ameriprise For Preferential Compensation For Certain Mutual Fund Sales
FINRA found violations of NASD Rule 2830(k), which prohibits member firms from favoring or disfavoring the sale or distribution of mutual fund shares on the basis of brokerage commissions received by the firm, prohibits member firms from arranging for a specific amount or percentage of brokerage commissions to be directed to the firm conditioned on the firm’s sale of mutual fund shares, and prohibits member firms from recommending the purchase of in mutual fund shares on’ the basis of brokerage commissions received or expected to be received by the firm from any source. During the time Ameriprise was known as American Express Financial Advisors (“AEFA”), the company maintained two shelf space (or revenue sharing) programs in which participating mutual fund’ complexes paid a fee in return for preferential treatment by the firm. That treatment included enhanced access to the firm’s sales force and the posting of participant sales materials and information about the participants’ funds on AEFA’s internal website. Seven of the fund complexes paid their fees for participating in the programs by directing approximately $41 million in mutual fund portfolio brokerage commissions to the firm. Those payments violated NASD Conduct Rules 2830(k) and 2110.
Ameriprise Sanctioned For 529 Plan Sales Abuse Violations
FINRA investigated and found that Ameriprise formerly known as American Express Financial Advisors (“AEFA”) sold over $1.1 billion of 529 college savings plans (“529 plans”) to over 138,000 customer accounts. During this period, AEFA failed to establish and maintain procedures, including written supervisory procedures that were reasonably designed to achieve compliance with suitability obligations as they related to the sale of 529 plans. In fact, during the period when AEFA sold over $625 million of 529 plans to its customers, the firm had no effective procedures in place specifically addressing the firm’s suitability obligations relating to the sale of 529 plans. Most of the procedures in place at that time were general compliance requirements relating to the sale of all products offered by AEFA.
Ameriprise Sanctioned For Cheating Customers Out of Sales Discounts They Were Entitled
FINRA, formerly the NASD along with the SEC censured and fined Ameriprise, formerly, American Express Financial Advisors (“AEFA”) millions of dollars and ordered the firm to undertake certain remedial and corrective measures relating to providing refunds to customers who did not receive appropriate mutual fund Class A share breakpoint discounts. The sanctions were based on AEFA’s failure to provide mutual fund breakpoint discounts as described in relevant fund prospectuses in violation of NASD Conduct Rule 2110.
*Above are only some of the regulatory disciplinary actions filed against Ameriprise Financial Services by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 60 BrokerCheck disclosures.
How to File an official Complaint Against Ameriprise Financial Services or one of it’s brokers, with FINRA
File an official complaint against Ameriprise Financial Services with FINRA by submitting a dispute through FINRA’s Investor Complaint Center. Complaints often involve fraud, negligence, or breach of fiduciary duty. The Law Offices of Robert Wayne Pearce can guide investors through filing and winning claims against Ameriprise.
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Ameriprise is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors.
These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Ameriprise without representation with an attorney about their complaints and have their complaints denied.
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Ameriprise
The Law Offices of Robert Wayne Pearce, P.A. assists investors in navigating the entire complaint and arbitration process against Ameriprise. With over 45 years of experience representing investors in FINRA arbitration, Attorney Robert Wayne Pearce and his team have recovered more than $175 million for clients who suffered losses due to broker misconduct and fraud.
The firm handles every aspect of your claim—from initial case evaluation through final hearing—and works on a contingency fee basis, meaning you pay nothing unless the firm recovers money for you. Attorney Pearce offers free consultations to review your situation and explain your legal options.
If you lost money at Ameriprise due to unsuitable recommendations, excessive trading, or other misconduct, contact the firm today to discuss your case.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Ameriprise Financial Services, LLC Today
The securities lawyers at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Ameriprise cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
