Ameriprise 2011 Annual Report Download - page 34

We have developed a comprehensive business continuity plan that covers business disruptions of varying severity and
scope and addresses the loss of a geographic area, building, staff, data systems and/or telecommunications capabilities.
We review and test our business continuity plan on an ongoing basis and update it as necessary, and we require our key
technology vendors and service providers to do the same. Under our business continuity plan, we expect to be able to
continue doing business and to resume operations with minimal service impacts. However, under certain scenarios, the
time that it would take for us to recover and resume operations may significantly increase depending on the extent and
geographic scope of the disruption and the number of personnel affected.
Geographic Presence
For years ended December 31, 2011, 2010 and 2009, approximately 89%, 88% and 85%, respectively, of our long-lived
assets were located in the United States and approximately 94%, 94% and 95%, respectively, of our net revenues were
generated in the United States. Our foreign operations are conducted predominantly through Threadneedle, as described in
this Annual Report on Form 10-K under ‘‘Business — Our Segments — Asset Management — Threadneedle.’’
Employees
At December 31, 2011, we had 11,139 employees, including 2,230 employee affiliated advisors (which does not include
our franchisee advisors, who are not employees of our company). We are not subject to collective bargaining agreements,
and we believe that our employee relations are strong.
Intellectual Property
We rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and
protect our intellectual property. In the United States and other jurisdictions, we have established certain service marks and
brand names that we consider important to the marketing of our products and services, including but not limited to
Ameriprise Financial, Columbia Management, RiverSource and Threadneedle. We have in the past and will in the future
take action to protect our intellectual property.
Regulation
Virtually all aspects of our business, including the activities of the parent company and our various subsidiaries, are subject
to various federal, state and foreign laws and regulations. These laws and regulations provide broad regulatory,
administrative and enforcement powers to supervisory agencies and other bodies, including U.S. federal and state
regulatory agencies, foreign government agencies or regulatory bodies and U.S. and foreign securities exchanges. The costs
of complying with such laws and regulations can be significant, and the consequences for the failure to comply may
include civil or criminal charges, fines, censure, the suspension of individual employees, and restrictions on or prohibitions
from engaging in certain lines of business.
In response to the economic crisis of 2008 and 2009, the laws and regulations governing the financial services industry
have continued to evolve. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’)
was enacted into law. The Dodd-Frank Act called for sweeping changes in the supervision and regulation of the financial
services industry designed to provide for greater oversight of financial industry participants, reduce risk in banking practices
and in securities and derivatives trading, enhance public company corporate governance practices and executive
compensation disclosures, and provide greater protections to individual consumers and investors. Certain elements of the
Dodd-Frank Act have since taken effect, though the details of many provisions remain subject to additional studies and the
adoption of final rules by applicable regulatory agencies. Domestic and international legal and regulatory changes, including
those resulting from the Dodd-Frank Act, have impacted and may in the future impact the manner in which we are
regulated and the manner in which we operate and govern our businesses.
The discussion set forth below provides a general framework of the laws and regulations impacting our businesses. Certain
of our subsidiaries may be subject to one or more elements of this regulatory framework depending on the nature of their
business, the products and services they provide and the geographic locations in which they operate. To the extent the
discussion includes references to statutory and regulatory provisions, it is qualified in its entirety by reference to these
statutory and regulatory provisions.
Broker-Dealer and Securities Regulation
Certain of our subsidiaries are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934
(‘‘Exchange Act’’) and with certain states, the District of Columbia and other U.S. territories. Our broker-dealer subsidiaries
are also members of self-regulatory organizations, including the Financial Industry Regulatory Authority (‘‘FINRA’’), and are
subject to the regulations of these organizations. The SEC and FINRA have stringent rules with respect to the net capital
requirements and the marketing and trading activities of broker-dealers. Our broker-dealer subsidiaries, as well as our
financial advisors and other personnel, must obtain all required state and FINRA licenses and registrations to engage in the
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