If you suffered investment losses through an Ameriprise Financial advisor, you may have legal options to recover your money. With over 183 disclosures on its FINRA BrokerCheck record and hundreds of millions in regulatory penalties, Ameriprise has faced significant scrutiny for broker misconduct, unsuitable investment recommendations, and failure to supervise its financial advisors.
Varnavides Law represents investors in FINRA arbitration claims against Ameriprise Financial Services, LLC. Attorney Gary Varnavides spent 10 years at Sichenzia Ross Ference LLP defending broker-dealers, which means he knows their strategies and how to hold them accountable when they fail their clients.
Key Takeaways
- Ameriprise Financial has 183 disclosures on its FINRA BrokerCheck record, including 79 regulatory events and 103+ arbitration cases
- The SEC fined Ameriprise $50 million in August 2024 for recordkeeping violations
- Common claims include unsuitable investments, breach of fiduciary duty, excessive trading, and failure to supervise
- You have 6 years to file a FINRA arbitration claim from the date of the misconduct
- Most FINRA arbitration cases resolve within 12-16 months
About Ameriprise Financial Services
Ameriprise Financial, Inc. is one of the largest financial services companies in the United States. Headquartered in Minneapolis, Minnesota, the company traces its origins to 1894 and became an independent publicly-traded company when it spun off from American Express in 2005.
Company Statistics
- FINRA CRD Number: 6363
- Assets Under Management: $1.6+ trillion
- Financial Advisors: 10,427
- Clients Served: 3.5+ million
- Fortune 500 Ranking: 254th
Regulatory Record
- Total Disclosures: 183
- Regulatory Events: 79
- Arbitration Cases: 103+
- Total Penalties Since 2000: $440.5+ million
- 2024 SEC Fine: $50 million
While Ameriprise is dually registered as a broker-dealer and investment adviser, its independent contractor business model has contributed to supervision gaps that allow misconduct to go undetected. Unlike traditional brokerage firms with full-service branch offices, Ameriprise operates through a franchise-type structure where financial advisors work from small, often one or two-person offices with remote supervision.
Ameriprise Financial Regulatory History and Violations
Ameriprise Financial has faced significant regulatory action from both the SEC and FINRA over the years. Understanding this history is important for investors evaluating potential claims.
August 2024: SEC Recordkeeping Violations
In August 2024, the SEC announced charges against 26 broker-dealers and investment advisers for widespread failures to maintain and preserve electronic communications. Ameriprise Financial Services, LLC agreed to pay a $50 million penalty as part of this enforcement action.
The violations involved employees using WhatsApp and other messaging apps for business communications without proper recordkeeping. Ameriprise admitted the facts in the SEC order and acknowledged that its conduct violated recordkeeping provisions of federal securities laws.
2022: Variable Annuity Switching Scheme
The SEC fined Ameriprise subsidiary RiverSource Distributors $5 million for incentivizing representatives to switch clients between variable annuities. This practice increased commissions for advisors while harming clients through unnecessary surrender charges and other fees. The SEC found that Ameriprise failed to protect clients from excessive and unsuitable annuity exchanges.
2018: Mutual Fund Overcharges
The SEC charged that 1,791 Ameriprise Financial Services customers paid a cumulative $1.7 million in unnecessary sales charges on mutual fund investments due to the firm’s failures. The SEC censured Ameriprise and ordered the firm to pay a $230,000 penalty. A separate investigation found over $1 million was improperly extracted by Ameriprise agents, resulting in an additional $4.5 million penalty.
| Year | Violation | Penalty | Regulator |
|---|---|---|---|
| 2024 | Recordkeeping failures (off-channel communications) | $50 million | SEC |
| 2022 | Variable annuity switching | $5 million | SEC |
| 2018 | Mutual fund sales charge overcharges | $4.73 million | SEC |
| 2016 | Failure to detect conversion ($370,000 stolen) | $850,000 | FINRA |
| 2013 | Failure to supervise | $750,000 | FINRA |
| 2005 | Anti-Reciprocal Rule violations | $12.3 million | FINRA |
Types of Claims Against Ameriprise Financial
Investors may pursue various types of claims against Ameriprise Financial through FINRA arbitration. Below are the most common grounds for recovery.
Unsuitable Investments
Advisors must recommend investments appropriate for your financial situation, risk tolerance, and investment objectives. Unsuitable recommendations violate FINRA suitability rules and may constitute securities fraud.
Breach of Fiduciary Duty
Investment advisers registered with the SEC owe you a fiduciary duty to act in your best interest. A breach occurs when an advisor prioritizes their commissions or the firm’s interests over yours.
Failure to Supervise
Brokerage firms must supervise their advisors. When Ameriprise fails to detect or prevent broker misconduct, the firm may be held liable for resulting investor losses.
Excessive Trading (Churning)
Churning occurs when advisors execute unnecessary trades to generate commissions. This practice drains your account through transaction costs while providing no investment benefit.
Misrepresentation and Omission
Advisors must disclose material information about investments, including risks, fees, and conflicts of interest. Misrepresentation or omission of material facts is actionable.
Overconcentration
Overconcentration occurs when an advisor fails to properly diversify your portfolio, exposing you to excessive risk in a single security, sector, or asset class.
Did You Know? Ameriprise’s independent contractor structure means advisors often work from small offices with minimal oversight. This creates gaps in supervision that can allow misconduct to continue undetected for extended periods.
Recent Ameriprise Lawsuits and Arbitration Cases
Investors continue to file claims against Ameriprise Financial. Recent cases highlight ongoing concerns about advisor conduct and firm practices.
2024-2025 Cash Sweep Litigation
In November 2024, multiple class-action lawsuits were filed alleging Ameriprise breached fiduciary duties through its cash sweep program. The lawsuits allege that Ameriprise paid clients interest rates between 0.0% and 0.3% on uninvested cash while the firm earned $3.07 billion in net interest income. Plaintiffs claim this practice caused clients to lose over $2 billion in potential interest earnings.
Individual Advisor Misconduct Claims
FINRA records show ongoing customer complaints against individual Ameriprise advisors, including:
- Unsuitable stock recommendations resulting in claimed damages exceeding $800,000
- Unsuitable investment advice leading to significant retirement account losses
- Failure to follow customer instructions regarding investment objectives and risk tolerance
These cases demonstrate that despite regulatory attention, problems with advisor supervision and compliance persist at Ameriprise Financial.
How to File a Claim Against Ameriprise Financial
Most investor claims against Ameriprise Financial are resolved through FINRA arbitration rather than court litigation. This is because brokerage account agreements typically contain mandatory arbitration clauses requiring disputes to be resolved through FINRA’s Dispute Resolution forum.
The FINRA Arbitration Process
Step 1: File Statement of Claim – The arbitration process begins when you file a Statement of Claim with FINRA, outlining the facts of your case, the violations committed, and the damages you seek.
Step 2: Arbitrator Selection – For claims over $100,000, a three-arbitrator panel is appointed. Claims under $100,000 proceed before a single arbitrator.
Step 3: Discovery Phase – Both parties exchange documents and information relevant to the dispute. FINRA discovery is streamlined compared to court litigation, with limited depositions.
Step 4: Hearing and Award – The arbitration hearing allows both sides to present evidence and testimony. The panel issues a binding award within 30 business days after the hearing concludes.
Timeline and Deadlines
Important Deadline: Under FINRA Rule 12206, you must file your arbitration claim within 6 years of the date the misconduct occurred. Federal securities laws may impose a shorter 2-year statute of limitations from when you discovered the fraud. Do not delay in consulting with a securities attorney about your potential claim.
Most FINRA arbitration cases resolve within 12-16 months, significantly faster than court litigation which can take several years. Cases that settle typically resolve within approximately 12 months, while cases proceeding to a full hearing take around 16 months on average.
What Damages Can You Recover?
Through FINRA arbitration, investors can seek recovery of various types of damages:
| Damage Type | Description |
|---|---|
| Compensatory Damages | Recovery of actual investment losses attributable to the misconduct |
| Lost Profits | What your investment would have earned with proper management |
| Interest | Pre-judgment and post-judgment interest on your losses |
| Attorneys’ Fees | In some cases, arbitrators may award reasonable attorneys’ fees |
| Punitive Damages | Available in cases involving egregious or intentional misconduct |
Under FINRA rules, the brokerage firm must pay any monetary award within 30 days of receiving the official Award document. If payment is not made, FINRA can suspend the firm or broker from the securities industry.
How to Check Your Ameriprise Advisor’s Background
Before filing a claim or to gather evidence for an existing dispute, you should review your financial advisor’s disciplinary history through FINRA BrokerCheck.
Using FINRA BrokerCheck
FINRA BrokerCheck is a free online tool that provides information about brokers and brokerage firms, including:
- Employment history and registrations
- Customer complaints and how they were resolved
- Regulatory actions and sanctions
- Civil judgments and liens
- Criminal disclosures
- Arbitration awards
You can access Ameriprise Financial’s firm profile and any individual advisor’s record at brokercheck.finra.org. This information can be valuable in supporting your claim and identifying patterns of misconduct.
Why Gary Varnavides Has the Edge in Ameriprise Claims
Attorney Gary Varnavides brings a unique perspective to investor claims against Ameriprise Financial. For 10 years at Sichenzia Ross Ference LLP, Gary defended broker-dealers in FINRA arbitration and regulatory investigations. This experience means he understands how firms like Ameriprise approach defense strategies.
Insider Knowledge
Having spent a decade on the defense side, Gary knows the tactics brokerage firms use to minimize liability. He anticipates their arguments and builds cases designed to overcome them.
Proven Credentials
- Super Lawyers Rising Star 2015-2023
- Licensed in California and New York
- Experience with complex securities matters nationwide
When you retain Varnavides Law, you get an attorney who has seen investment fraud cases from both sides of the table and knows how to fight for maximum recovery.
Fee Structure for Ameriprise Claims
We handle most Ameriprise Financial claims on a contingency fee basis. This means:
- No upfront attorney fees – You pay nothing out of pocket to get started
- We only get paid if we recover money for you – Our interests are aligned with yours
- Fee percentage discussed during consultation – We will explain our fee structure clearly
You remain responsible for case costs, which may include filing fees, expert witnesses, and deposition transcripts. We can discuss cost estimates and payment arrangements during your free consultation.
Suffered Losses Through Ameriprise Financial?
If you believe you lost money due to your Ameriprise advisor’s misconduct, unsuitable recommendations, or the firm’s failure to supervise, we want to hear from you. Contact Varnavides Law for a free, confidential consultation to discuss your potential claim.
Frequently Asked Questions About Ameriprise Financial Claims
How long do I have to file a claim against Ameriprise Financial?
Under FINRA Rule 12206, you must file an arbitration claim within 6 years of the date the misconduct occurred. However, federal securities laws may impose a shorter 2-year limitations period from when you discovered or should have discovered the fraud. It is important to consult with a securities attorney promptly to protect your rights.
Can I sue Ameriprise Financial in court?
Most Ameriprise account agreements contain mandatory arbitration clauses requiring disputes to be resolved through FINRA arbitration rather than court litigation. FINRA arbitration offers certain advantages, including faster resolution (12-16 months vs. years in court) and lower costs. In some circumstances, class action lawsuits may be filed in court.
What evidence do I need to file an Ameriprise claim?
Helpful evidence includes account statements, trade confirmations, correspondence with your advisor, account agreements, and any notes from conversations. Your attorney can subpoena additional documents from Ameriprise during the discovery phase, including internal communications, supervision records, and compliance files.
How much does it cost to file a FINRA arbitration claim?
FINRA charges filing fees based on the amount of damages claimed. For example, claims between $100,001 and $500,000 have a $1,575 filing fee. Attorney Varnavides handles most cases on contingency, meaning you pay no attorney fees unless we recover money for you. Case costs such as filing fees and expert witnesses are discussed during your consultation.
What is the average recovery in Ameriprise arbitration cases?
Recovery amounts vary significantly based on the specific facts of each case, the type and extent of misconduct, and the losses suffered. Some investors recover a substantial portion of their losses plus interest and fees, while others may receive partial awards. During your consultation, we can evaluate your case and discuss realistic expectations for recovery.
Can I recover losses from market downturns?
Market losses alone are not recoverable. However, if your advisor made unsuitable recommendations that exposed you to excessive risk, failed to diversify your portfolio, or engaged in other misconduct that amplified your losses, you may have a valid claim. We analyze whether your losses resulted from market conditions or advisor misconduct.
What happens if Ameriprise does not pay the arbitration award?
Under FINRA rules, brokerage firms must pay monetary awards within 30 days of receiving the official Award document. If Ameriprise fails to pay, FINRA can suspend the firm from the securities industry. Awards can also be confirmed in court and enforced through standard collection procedures.
How do I check my Ameriprise advisor’s disciplinary history?
You can review your advisor’s record through FINRA BrokerCheck at brokercheck.finra.org. This free tool shows customer complaints, regulatory actions, employment history, and other disclosures. You can also request a detailed BrokerCheck report in PDF format for your records.
Take Action to Protect Your Rights
If you suffered investment losses through Ameriprise Financial, time limits apply to your potential claim. The sooner you consult with a securities attorney, the better your chances of preserving evidence and meeting critical deadlines.
Varnavides Law represents investors nationwide in FINRA arbitration claims against Ameriprise Financial Services. With offices in Los Angeles and experience handling complex securities matters coast to coast, we are prepared to fight for the recovery you deserve.
Contact us today for a free consultation to discuss your Ameriprise Financial claim. There is no obligation, and the consultation is confidential.
