Ameriprise Agrees to Settle SEC, NASD Claims

Ameriprise Financial Inc., the former brokerage unit of American Express Co., agreed Thursday to pay $57.3 million to settle allegations that it took kickbacks from mutual funds and allowed improper trading of fund shares.

The Minneapolis-based firm didn’t tell investors that it received tens of millions of dollars a year to recommend certain mutual funds, the Securities and Exchange Commission and NASD (formerly the National Assn. of Securities Dealers) said.

The settlement is equivalent to almost half of Ameriprise’s third-quarter profit. More than 30 firms have paid $3.7 billion to resolve claims by regulators investigating improper trading since 2003.

“This settlement reiterates how important it is for financial industry professionals to fully disclose the nature and extent of their conflicts of interest to customers,” Linda Thomsen, SEC enforcement chief, said in a statement.

Ameriprise also let some clients engage in market timing, the SEC and NASD said.

Ameriprise didn’t admit or deny wrongdoing. “We are pleased to resolve these matters,” it said in a statement.

Ameriprise shares rose $1.26 to $43.31.