U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

American Express Financial Corporation

On December 1, 2005, the SEC instituted settled administrative and cease-and-desist proceedings against American Express Financial Corporation (now known as Ameriprise Financial, Inc.). The SEC alleged, among other things, that AEFC did not adequately disclose to shareholders in the funds it advised, the American Express Funds, certain market timing activities that were inconsistent with the disclosures in the funds' prospectuses. As part of the settlement, AEFC has agreed to pay a total of $15 million in disgorgement and civil penalties to be distributed to benefit investors in the American Express Funds for market timing activity that took place between January 1, 2002, and September 30, 2003. For more information on the SEC's action, you can read In the Matter of American Express Financial Corporation (now known as Ameriprise Financial, Inc.), Rel. No. IA-2451 (Dec. 1, 2005).

Under the terms of the SEC's Order, AEFC, through an independent distribution consultant, must submit a distribution plan to the SEC to distribute the total amount of the $15 million. Once the distribution plan is submitted for SEC approval, it will be published for public comment. SEC staff continues to work on a proposed distribution plan and expects to publish the plan on the SEC website in late winter/early spring, 2012.

http://www.sec.gov/divisions/enforce/claims/aefc.htm


Modified: 11/03/2011