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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 57341 / February 15, 2008

ADMINISTRATIVE PROCEEDING
FILE NO. 3-12115


In the Matter of


American Express
Financial Advisors Inc.
(now known as Ameriprise
Financial Services, Inc.),

Respondent.


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NOTICE OF PROPOSED DISTRIBUTION PLAN AND OPPORTUNITY FOR COMMENT

Notice is hereby given, pursuant to Rule 1103 of the Securities and Exchange Commission’s (“Commission”) Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. 201.1103, that the Division of Enforcement has submitted to the Commission a proposed plan (“Distribution Plan”) for the distribution of monies placed into a Fair Fund in the above-captioned matter. On December 1, 2005, in the above-captioned matter, the Commission issued an Order Instituting Administrative and Cease-and Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b) and 21C of the Securities Exchange Act of 1934 (“Order”) (Securities Act of 1933 Release No. 8637). Simultaneously with the entry of the Order, the Commission accepted a settlement offer from the Respondent in which it consented to the entry of the Order without admitting or denying the Order’s findings and paid $30 million in disgorgement and penalties. In accordance with the Order, Respondent paid the disgorgement and penalties to the United States Treasury and this money was used to create a Fair Fund for distribution to customers of Respondent who were harmed by the conduct described in the Order pursuant to the proposed Distribution Plan.

OPPORTUNITY FOR COMMENT

Pursuant to this Notice, all interested parties are advised that they may print a copy of the proposed Distribution Plan from the Commission’s public website, http://www.sec.gov, and Ameriprise’s public website, www.ameriprise.com. Interested parties may also obtain a written copy of the proposed Distribution Plan by submitting a request to Junaid A. Zubairi, United States Securities and Exchange Commission, 175 West Jackson Boulevard, Suite 900, Chicago, Illinois 60604. All persons who desire to comment on the Distribution Plan may submit their comments, in writing, no later than March 17, 2008:

  1. to the Office of the Secretary, United States Securities and Exchange Commission, 100 F Street, N.E., Washington, DC 20549-1090;
     
  2. by using the Commission’s Internet comment form (http://www.sec.gov/litigation/admin.shtml); or
     
  3. by sending an e-mail to rule-comments@sec.gov.

Please include “Administrative Proceeding File Number 3-12115” on the subject line of any electronic filing. Comments received will be publicly available. Persons should only submit information that they wish to make publicly available.

THE DISTRIBUTION PLAN

The Distribution Plan provides for distribution of the disgorgement, prejudgment interest and civil penalties paid by American Express Financial Advisors, Inc., now know as Ameriprise Financial Services, Inc. (“Ameriprise”) in this matter to all eligible customers of Ameriprise who purchased shares in Preferred Provider and Select Group program family funds from January 1, 2001 through August 31, 2004 (“Eligible Customers”). The Fair Fund consists of the $30 million paid by Ameriprise plus any accumulated interest. As proposed in the Distribution Plan, if approved, eligible customers of Ameriprise would receive a pro rata share of the Fair Fund as calculated by Ameriprise and the Independent Distribution Consultant (“IDC”). The pro rata shares of the Fair Fund would be determined based on information contained in Ameriprise’s records and audited by the IDC. Eligible customers would not need to go through a claims process.

For the Commission, by its Secretary, pursuant to delegated authority.

Nancy M. Morris
Secretary

 

http://www.sec.gov/litigation/admin/2008/34-57341.htm


Modified: 02/15/2008