Violation Tracker Individual Record

Company: 
American Express Financial Advisors, Inc.
Current Parent Company: 
Ameriprise Financial
Penalty: 
$2,000,000
Year: 
2005
Date: 
December 1, 2005
Offense Group: 
financial offenses
Primary Offense: 
investor protection violation
Secondary Offense: 
financial institution supervision failures
Violation Description: 

American Express Financial Advisors agreed to pay a $2 million civil penalty to the state in settlement of allegations it failed to establish and maintain supervision policies of employees and failed to check suitability of mutual fund shares purchased, leading to some transactions occuring where mutual fund shares were recommended or purchased based on brokerage commissions instead of suitability for the customer.

Level of Government: 
state
Action Type: 
agency action
Agency: 
Minnesota Department of Commerce
Civil or Criminal Case: 
civil
Facility State: 
Minnesota
HQ Country of Parent: 
USA
HQ State of Parent: 
Minnesota
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
financial services
Specific Industry of Parent: 
financial services
Notes: 

Order notes that this action is in addition to the SEC and NASD investigations because Minnesota is the company's domicile state and primary state regulator.

Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.