Ameriprise Financial

Ameriprise Financial, Inc. is a Minneapolis-based American diversified financial services company and bank holding company. Its modern corporate identity dates from September 2005, when American Express completed the spin-off of its financial advisory and related businesses, formerly operated as American Express Financial Advisors. The business heritage is considerably older: it originated in Minneapolis in 1894 as Investors Syndicate and subsequently developed through investment, insurance, financial planning, and asset-management activities. Ameriprise primarily serves individuals and families, with a particular emphasis on affluent clients and retirement-related planning. Its advice-led model combines financial advisors, registered representatives, investment advisers, brokerage and banking capabilities, and digital service channels. Services include comprehensive financial planning, investment advice, portfolio and wealth management, retirement-income planning, estate planning, insurance, annuities, banking, lending, personal trust services, and asset management. The company’s distribution model includes affiliated advisors as well as direct and institutional channels. The company operates several important business brands. Ameriprise Financial is used for financial planning, advisory, brokerage, banking, and retail wealth-management services in the United States. RiverSource is associated with annuities and protection products issued by the RiverSource life-insurance companies, including life and disability-income insurance. Its asset-management business has operated internationally as Columbia Threadneedle Investments since 2015, following the earlier acquisition and integration of Threadneedle Asset Management and Columbia Management. Ameriprise Bank, FSB was launched in 2006 and was converted in 2013 into a limited-powers national trust bank, renamed Ameriprise National Trust Bank. The company has also expanded and reshaped its distribution and asset-management operations through acquisitions, including H&R Block Financial Advisors, J. & W. Seligman & Co., Columbia Management, and Investment Professionals. Some businesses were later sold or closed, including Ameriprise Auto & Home Insurance and the company’s emerging India financial-planning operation. Ameriprise is publicly traded on the New York Stock Exchange under the symbol AMP. Its business is principally U.S.-oriented, although its asset-management activities have had substantial international operations. The company’s positioning is that of an integrated wealth-management and financial-planning provider rather than a single-product bank, insurer, or fund manager. Publicly reported information has identified wealth management as the dominant source of revenue, while the company’s broader platform allows it to combine advice, investment products, protection products, retirement solutions, and trust or banking services.

Ameriprise’s institutional history begins in Minneapolis in 1894, when John Elliott Tappan founded Investors Syndicate. In 1925, J. R. Ridgway merged his investment firm with Investors Syndicate and became its president. After Ridgway’s death in 1937, his son, J. R. Ridgway Jr., became president at age 23. The company expanded its investment offerings in 1940 with Investors Mutual Fund, one of the early mutual funds, emphasizing diversification and professional management. In 1949, Investors Syndicate changed its name to Investors Diversified Services, Inc., commonly known as IDS. IDS added an insurance and annuity capability in 1958 by establishing Investors Syndicate Life Insurance and Annuity Company, the predecessor of RiverSource Life Insurance Company. By the 1960s, Investors Mutual Fund was described as the world’s largest balanced mutual fund. The company’s Minneapolis presence was reinforced in 1974 with the opening of the IDS Centre, now known as IDS Center. In 1979, the Ridgway family sold its remaining ownership interest, and IDS became a wholly owned subsidiary of Alleghany Corporation. American Express acquired IDS Financial Services from Alleghany in 1984. Two years later, IDS acquired Wisconsin Employers Casualty Company and renamed it IDS Property Casualty Insurance Company. Effective January 1, 1995, IDS changed its name to American Express Financial Corporation and conducted business as American Express Financial Advisors. This period brought greater integration with American Express while retaining the core focus on financial advice, investment products, insurance, and retirement-oriented services. The company broadened its asset-management capabilities before separation from American Express. In October 2003, American Express Financial Advisors acquired London-based Threadneedle Asset Management Holdings. In September 2005, American Express completed the corporate spin-off, creating the independently listed Ameriprise Financial, Inc. The new company continued to combine advisor-based planning and distribution with asset management, insurance, annuities, and related financial services. Ameriprise expanded its platform after the spin-off. It launched Ameriprise Bank, FSB in 2006. Threadneedle acquired Invesco Perpetual’s full-service defined-contribution pension business in 2008, while Ameriprise acquired H&R Block Financial Advisors and J. & W. Seligman & Co. In 2009, Threadneedle acquired Standard Chartered Bank’s World Express Funds business, including a Luxembourg-based SICAV platform. In 2010, Ameriprise acquired Columbia Management, Bank of America’s long-term asset-management business, for $1 billion. Threadneedle later acquired investment assets associated with LV= in 2011 and adopted the Columbia Threadneedle Investments name in 2015. The company also reconfigured parts of its distribution network. It sought a buyer for Securities America in 2011 and completed its sale to Ladenburg Thalmann Financial Services later that year. Ameriprise entered India in 2012 through financial and insurance-related services, but closed its new financial-planning division there in 2014. In 2013, Ameriprise Bank was converted into a limited-powers national trust bank and renamed Ameriprise National Trust Bank. Ameriprise acquired Investment Professionals in 2017 and sold Ameriprise Auto & Home Insurance to American Family Insurance in 2019. In 2022, Phoenix Wealth Management joined the Ameriprise organization with reported client assets exceeding $450 million. The company has also faced regulatory, litigation, supervisory, data-security, and employment-related controversies. Matters reported in the 2000s included allegations involving proprietary-fund incentives, market timing, revenue sharing, supervision of representatives, customer-data exposure, and private-placement sales. Later matters included a settlement concerning fees in the company’s employee retirement plan, a Department of Labor back-pay settlement involving alleged pay discrimination, and SEC settlements concerning fund-fee placement and safeguarding retail assets. Ameriprise remains an active public company whose principal identity is an integrated wealth-management provider supported by advisor distribution, asset management, insurance, banking, and trust capabilities.

1. 2022Phoenix Wealth Management joins Ameriprise

   Phoenix Wealth Management joined the organization with more than $450 million in client assets.

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2. 2019Auto and home insurance business sold

   Ameriprise sold Ameriprise Auto & Home Insurance to American Family Insurance.

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3. 2015Threadneedle rebranded as Columbia Threadneedle Investments

   The company unified its international asset-management identity under the Columbia Threadneedle name.

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4. 2010Columbia Management acquired

   Ameriprise acquired Bank of America’s long-term asset-management business for $1 billion.

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5. 2005Ameriprise becomes an independent public company

   American Express completed the spin-off of its financial-advisory business, which became Ameriprise Financial.

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6. 1995IDS becomes American Express Financial Corporation

   The business changed its corporate name and operated as American Express Financial Advisors.

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7. 1984American Express acquires IDS Financial Services

   American Express acquired IDS Financial Services from Alleghany Corporation.

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8. 1958Insurance and annuity subsidiary established

   IDS founded the life-insurance and annuity company that became RiverSource Life Insurance Company.

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9. 1949Name changed to Investors Diversified Services

   Investors Syndicate adopted the Investors Diversified Services, Inc. name.

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10. 1940Investors Mutual Fund introduced

    Investors Syndicate introduced an early mutual fund emphasizing diversification and professional management.

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11. 1894Investors Syndicate founded in Minneapolis

    John Elliott Tappan founded the business that ultimately developed into Ameriprise Financial.

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An advice-led, integrated wealth-management platform for affluent individuals, families, retirement investors, and selected institutional clients.

• Ameriprise wealth managementWealth management

  Advisor-led wealth-management services for individuals and families, integrating investment management, financial planning, retirement preparation, cash-flow considerations, and longer-term wealth objectives. The offering is supported by affiliated advisors, registered representatives, investment-advisory accounts, brokerage services, and digital tools.

• Financial planning and investment adviceAdvisory services

  Personalized planning and investment advice designed to connect a client’s financial objectives with portfolio construction, savings, retirement, protection, and estate-related decisions. Services are delivered through Ameriprise Financial Services and its advisor network.

• Columbia Threadneedle InvestmentsAsset management2015

  The company’s international asset-management platform, created through the development of Threadneedle and Columbia Management activities. It serves retail, institutional, and other investors through investment-management products and strategies.

• RiverSource annuities and insuranceInsurance and retirement products

  RiverSource is the principal brand for Ameriprise annuity and protection products, including variable annuities, life insurance, and disability-income insurance issued by RiverSource life-insurance companies.

• Ameriprise Bank and trust servicesBanking and trust2006

  Banking, lending, personal trust, and related services offered through Ameriprise’s banking and trust subsidiaries. The bank originated as Ameriprise Bank, FSB and was converted into a limited-powers national trust bank in 2013.

• 2019Sell Ameriprise Auto & Home InsuranceM&A

  Ameriprise rebalanced its portfolio toward advice, wealth management, and related financial services.

  What changed. The company sold Ameriprise Auto & Home Insurance to American Family Insurance.

  Aftermath. The transaction removed personal auto and home insurance underwriting from Ameriprise’s operating portfolio.

  Sale consideration. $1.05 billion (2019 transaction)

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• 2015Unify asset management under Columbia ThreadneedleStrategy

  Ameriprise had developed asset-management operations under both Columbia and Threadneedle identities.

  What changed. Threadneedle adopted the Columbia Threadneedle Investments name.

  Aftermath. The rebrand created a common international asset-management identity while Ameriprise retained its U.S. wealth-management and advisory branding.

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• 2010Acquire Columbia ManagementM&A

  Ameriprise sought to expand its asset-management scale and capabilities.

  What changed. The company acquired Bank of America’s long-term asset-management business, Columbia Management, for a reported $1 billion.

  Aftermath. The transaction strengthened the asset-management platform that later operated alongside the Columbia Threadneedle brand.

  Acquisition consideration. $1 billion (2010 announcement)

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• 2006Launch Ameriprise BankProduct launch

  The company sought to broaden its advice-led platform with consumer banking and lending capabilities.

  What changed. Ameriprise launched Ameriprise Bank, FSB.

  Aftermath. The banking operation later became a limited-powers national trust bank and adopted the Ameriprise National Trust Bank name.

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• 2005Separate the financial-advisory business from American ExpressStrategy

  American Express’s financial-advisory and related operations had developed into a substantial wealth-management platform requiring an independent corporate structure.

  What changed. American Express completed the spin-off and established Ameriprise Financial as an independently listed public company.

  Aftermath. Ameriprise continued the advice, investment, insurance, and asset-management businesses under its own corporate identity.

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• 2018Higher-fee fund placement settlementControversy

  Ameriprise paid $230,000 to settle SEC allegations that customers were placed into higher-fee funds.

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• 2018Retail-asset safeguarding settlementControversy

  Ameriprise paid $4.5 million to settle allegations that it failed to safeguard retail investor assets from fraudulent conduct by representatives.

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• 2016Department of Labor pay-discrimination settlementControversy

  The company agreed to pay reported back wages after a Department of Labor matter alleging that 20 Black employees were paid less than similarly situated white employees.

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• 2015Employee 401(k) fee lawsuit settlementControversy

  Ameriprise paid a reported $27.5 million to settle litigation alleging that employees were charged excessive fees in the company’s 401(k) program.

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• 2011Securities America private-placement settlementsControversy

  Securities America and its holding company entered settlements involving private-placement securities issued by Medical Capital and Provident Royalties, producing reported pre-tax charges.

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• 2009Undisclosed REIT revenue-sharing settlementControversy

  Ameriprise agreed to pay $17.3 million following an SEC enforcement action concerning undisclosed revenue sharing tied to sales of certain real estate investment trusts.

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• 2008Reserve Primary Fund investor supportControversy

  During the financial crisis, Ameriprise volunteered to pay as much as $33 million to cover investor losses connected with the Reserve Primary Fund.

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• 2006Customer-data laptop incidentControversy

  The company settled charges related to a stolen laptop containing data associated with approximately 230,000 customers.

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• 2005Proprietary mutual-fund recommendations settlementControversy

  New Hampshire reached a reported $7.4 million settlement with Ameriprise Financial Advisors over allegations that advisors were rewarded for recommending underperforming proprietary mutual funds.

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• 2005Market-timing and brokerage-practice settlementsControversy

  Ameriprise agreed to reported settlements involving SEC market-timing allegations, state fines, and NASD allegations concerning mutual-fund and share-sale practices.

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• 2022Phoenix Wealth Management joins Ameriprise

  Phoenix Wealth Management joined Ameriprise with more than $450 million in client assets, including assets associated with individuals, family offices, and charitable foundations.

  M&A
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• 2019Ameriprise sells auto and home insurance business

  Ameriprise sold Ameriprise Auto & Home Insurance to American Family Insurance for $1.05 billion.

  M&A
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• 2015Threadneedle becomes Columbia Threadneedle Investments

  Ameriprise’s international asset-management operation adopted the Columbia Threadneedle name.

  Other
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• 2014Ameriprise closes India financial-planning division

  Ameriprise discontinued its nascent India financial-planning division, citing weak prospects for fee-based advisory services.

  Other
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• 2012Ameriprise begins services in India

  The company opened services to individuals in India and established an insurance-brokerage entity there.

  Other
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• 2011Ameriprise sells Securities America

  Ameriprise completed the sale of Securities America to Ladenburg Thalmann Financial Services for cash and potential additional payments.

  M&A
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• 2010Ameriprise acquires Columbia Management

  Ameriprise announced a $1 billion acquisition of Bank of America’s long-term asset-management business, Columbia Management.

  M&A
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• 2008Ameriprise acquires H&R Block Financial Advisors

  Ameriprise acquired H&R Block Financial Advisors for cash, expanding its advisor and retail wealth-management distribution.

  M&A
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• 2008Ameriprise acquires J. & W. Seligman & Co.

  The company acquired the asset-management firm J. & W. Seligman & Co.

  M&A
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• 2006Ameriprise launches Ameriprise Bank

  The company established Ameriprise Bank, FSB to provide consumer banking and lending products.

  Product launch
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• 2005Ameriprise completes spin-off from American Express

  American Express completed the corporate separation of its financial-advisory business, which began operating as the independently listed Ameriprise Financial.

  M&A
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1. Ameriprise Financial
2. Ameriprise Financial investor relations
3. Ameriprise Financial corporate website