Trust Updates Archive

Ameriprise mutual fund settlement lawsuit 401k trust regulatory news a.m. publishing trust companies banks Bernard Garbo Ameriprise Settles Proprietary Mutual Fund Litigation

(March 27, 2015 --Chicago, IL) -- Ameriprise has agreed to a $27.5 million settled of an ERISA proprietary mutual fund originally filed in late 2011. The case is Krueger v. Ameriprise Financial, No. 11-2781 (D. Minn.)

In addition to the cash settlement, Ameriprise has agreed to provide greater transparency regarding its 401k recordkeeping function, in particular to conduct competitive bidding for such services within one year. Plaintiffs alleged Ameriprise's 401k menu option drove participants to its more expensive proprietary funds in order to generate greater revenue for its subsidiaries, including RiverSource/Columbia Management, an investment advisor, and Ameriprise Trust Company.

Ameriprise purchased Columbia Management from Bank of America in 2010. A lawsuit against Bank of America, alleging similar violations, had been dismissed in 2011.

The settlement also obligates Ameriprise to "continue to consider the use of Collective Investment Trusts."

For more information on this lawsuit, see the upcoming issue of Trust Regulatory News.

Ameriprise Trust was ranked No. 21 in Trust Performance Report 2014's listing of the top 1500 trust companies.

For more information on trust industry statistics and benchmarks, see the upcoming issue of Trust Performance Report 2015.
Trust Performance Report -- annual data book, published in May, provides both industry and peer group performance data by assets, gross revenue, net income, and account category. Subscribers receive quarterly updates. TPR findings are based on its annual survey of the top 1500 fiduciary institutions. For more best practices and benchmark data see TPR. For information on ordering click here or the link below.

Fiduciary Earnings & Expenses -- annual data book comparing performance among independent trust companies to that of OCC national trust companies and to bank trust divisions. For information on ordering click here or the link below.

No statement in this issue is offered as or should be construed as legal opinion or advice or as an indicator of future performance.
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