SEC distributes $32 million to investors

The Securities and Exchange Commission has distributed most of a $32 million Fair Fund to over a half a million current and former Ameriprise Financial Services Inc. customers

The Securities and Exchange Commission has distributed most of a $32 million Fair Fund to over a half a million current and former Ameriprise Financial Services Inc. customers who lost money after the company failed to adequately disclose revenue-sharing payments from several fund companies.
The SEC settled administrative cease-and-desist proceedings filed against the Minneapolis-based brokerage firm on Dec. 1, 2005. In the case, the SEC alleged that Ameriprise failed to adequately disclose its receipt of revenue-sharing payments by affiliates of a select group of mutual fund families and administrators of Section 529 college savings plans.
The SEC’s order requires Ameriprise to pay disgorgement and prejudgment interest of $15 million and $15 million in penalties into a Fair Fund to be distributed to Ameriprise customers.
The additional $2 million to be distributed is from accrued interest.
On April 9, the SEC approved the distribution plan, which gives eligible customers shares of the Fair Fund, based upon the amount of money each customer invested in certain mutual funds and 529 plans.