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Regulation and Compliance > Federal Regulation > SEC

Ameriprise Braces for $50M SEC Fine Over Electronic Messages

By Melanie Waddell

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Ameriprise Financial has booked a charge for a $50 million penalty from the Securities and Exchange Commission over the use of electronic messaging platforms.

In Ameriprise’s annual report, released Feb. 24, the firm states that it has responded to SEC document and information requests “regarding the preservation of certain business-related communications sent on electronic messaging platforms that have not been approved” by the firm.

During 2023, Ameriprise states, it recorded a $50 million accrual for this matter within its introducing broker-dealer subsidiary.

Ameriprise states that it has reached an agreement in principle with the SEC staff, “subject to Commission approval, that it believes resolves this matter.”

As of Dec. 31, 2023, Amerprise had 10,367 advisors.

The SEC has levied billions of dollars in fines on banks, BDs and other firms in an enforcement sweep targeting the use of unofficial, and unmonitored, channels like WhatsApp, personal email and text messaging to do business.

In February, the agency announced 16 firms had agreed to a total of $81 million in fines. LPL Financial is anticipating a $50 million fine, and Raymond James in October reported a $55 million hit to its profits tied to the communicatons sweep.

News of the Ameriprise penalty was first reported Friday afternoon by InvestmentNews.

Melanie Waddell

@Think_MelanieW

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