Ameriprise Financial Inc. will pay disgorgement of $6.3 million, prejudgment interest of $700,000 and a civil penalty in the amount of $1.8 million to the SEC to settle allegations that it advertised an F-Squared Investments Inc. strategy that had materially inflated performance track record.
Between December 2010 and January 2015,
The regulator noted that Ameriprise did not take enough steps to verify the accuracy of F-Squared's historical data and other related information. It also did not gather sufficient documentation that substantiated F-Squared's advertising claims.
Ameriprise did not admit nor deny the findings but it consented to the entry of the cease-and-desist proceedings that the SEC instituted against it.
