Ameriprise 2009 Annual Report Download - page 33

plan, we expect to be able to continue doing business and to Regulatory Authority, commonly referred to as FINRA, have also
resume operations with minimal service impacts. However, under heightened requirements for, and continued scrutiny of, the
certain scenarios, the time that it would take for us to recover and effectiveness of supervisory procedures and compliance programs
to resume operations may significantly increase depending on the of broker-dealers, including certification by senior officers
extent of the disruption and the number of personnel affected. regarding the effectiveness of these procedures and programs.
Our Advice & Wealth Management business is regulated by the
Geographic Presence SEC, FINRA, the Commodity Futures Trading Commission, the
For years ended December 31, 2009, 2008 and 2007, National Futures Association, the Federal Deposit Insurance
approximately 85%, 86% and 77%, respectively, of our long-lived Corporation, the Office of Thrift Supervision (‘‘OTS’’), state
assets were located in the United States and approximately 95%, securities regulators and state insurance regulators. Additionally,
94% and 92%, respectively, of our net revenues were generated in the U.S. Departments of Labor and Treasury regulate certain
the United States. aspects of our retirement services business. Because our
independent contractor branded advisor platform is structured as
Employees a franchise system, we are also subject to Federal Trade
At December 31, 2009, we had 9,793 employees, including 2,445 Commission and state franchise requirements. Compliance with
employee branded advisors (which does not include our branded these and other regulatory requirements adds to the cost and
franchisee advisors or the unbranded advisors of SAI and its complexity of operating our business.
subsidiaries, none of whom are employees of our company). We
AFSI is registered as a broker-dealer and investment adviser with
are not subject to collective bargaining agreements, and we believe
the SEC, is a member of FINRA and does business as a broker-
that our employee relations are strong.
dealer and investment adviser in all 50 states the District of
Columbia, Puerto Rico and the U.S. Virgin Islands. AASI has
Regulation
submitted an application to the SEC and FINRA to withdraw its
Most aspects of our business are subject to extensive regulation by registration as a broker-dealer, which is pending review and
U.S. federal and state regulatory agencies and securities approval of our regulators. RiverSource Distributors, which serves
exchanges and by non-U.S. government agencies or regulatory as the principal underwriter and distributor of our annuities and
bodies and securities exchanges. Our public disclosure, internal insurance products, is registered as a broker-dealer with the SEC,
control environment and corporate governance principles are each of the 50 states and the District of Columbia, and is a member
subject to the Sarbanes-Oxley Act of 2002, related regulations and of FINRA. RiverSource Fund Distributors, Inc. is also a registered
rules of the SEC and the listed company requirements of The New broker-dealer and FINRA member. AFSI, AASI and RiverSource
York Stock Exchange, Incorporated. Distributors are also licensed as insurance agencies under state
law. The SEC and FINRA have stringent rules with respect to the
We have implemented franchise and compliance standards and
net capital requirements and activities of broker-dealers. Our
strive for a consistently high level of client service. For several
financial advisors and other personnel must obtain all required
years, we have used standards developed by the Certified
state and FINRA licenses and registrations. SEC regulations also
Financial Planner Board of Standards, Inc., in our financial
impose notice requirements and capital limitations on the
planning process. We also participated in developing the
payment of dividends by a broker-dealer to a parent. Our
International Organization for Standardization (‘‘ISO’’) 22222
subsidiary, AEIS, is also registered as a broker-dealer with the
Personal Financial Planning Standard published in December
SEC and appropriate states, is a member of FINRA, the New York
2005. We put in place franchise standards and requirements for
Stock Exchange and the Boston Stock Exchange and is a
our franchisees regardless of location. We have made significant
stockholder in the Chicago Stock Exchange. Two subsidiaries that
investments in our compliance processes, enhancing policies,
use our independent financial advisor platform, SAI and Brecek &
procedures and oversight to monitor our compliance with the
Young, are also registered as broker-dealers, are members of
numerous legal and regulatory requirements applicable to our
FINRA, and are licensed as insurance agencies under state law.
business, as described below. We expect to continue to make
Certain of our subsidiaries also do business as registered
significant investments in our compliance infrastructure.
investment advisers and are regulated by the SEC and state
Investment companies and investment advisers are required by securities regulators where required.
the SEC to adopt and implement written policies and procedures
Ameriprise Certificate Company, our face-amount certificate
designed to prevent violation of federal securities laws and to
company, is regulated as an investment company under the
designate a chief compliance officer responsible for administering
Investment Company Act of 1940, as amended. Ameriprise
these policies and procedures. The SEC and the Financial Industry
Certificate Company pays dividends to the parent company and is
18 ANNUAL REPORT 2009