According to FINRA’s website, Ameriprise Financial recently entered in to a Letter of Acceptance, Waiver, and Consent (AWC) with FINRA.
Among other things, the AWC alleges that from January 2010 through April 2013, Ameriprise participated in the sale of initial public offerings of Closed End Funds. Despite being aware that closed end funds 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 closed end funds generally unsuitable, Ameriprise allegedly 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 closed end funds purchased at the IPO. In so doing, FINRA alleged that Ameriprise violated NASD Rule 3010 and FINRA Rule 2010.
As part of the AWC, Ameriprise agreed to a censure and a $100,000 fine.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information on the firm and it’s representation of investors, visit http://whitesecuritieslaw.com.
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Tags: Ameriprise CEFs, Ameriprise closed-end funds, Ameriprise FINRA AWC, Ameriprise FINRA fine, Ameriprise FINRA sanction, Ameriprise letter of acceptance waiver consent Last modified: November 29, 2022