Ameriprise 2012 Annual Report Download - page 172

State insurance statutes also contain limitations as to the amount of dividends and distributions that insurers may make
without providing prior notification to state regulators. For RiverSource Life, dividends or distributions in excess of statutory
unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require
advance notice to the Minnesota Department of Commerce, RiverSource Life’s primary regulator, and are subject to
potential disapproval. In addition, dividends whose fair market value, together with that of other dividends or distributions
made within the preceding 12 months, exceeds the greater of (i) the previous year’s statutory net gain from operations or
(ii) 10% of the previous year-end statutory capital and surplus are referred to as ‘‘extraordinary dividends.’’ Extraordinary
dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential
disapproval. Government debt securities of $6 million and $7 million at December 31, 2012 and 2011, respectively, held
by the Company’s life insurance subsidiaries were on deposit with various states as required by law and satisfied legal
requirements. Statutory capital and surplus for RiverSource Life were $3.1 billion, $2.7 billion and $3.7 billion for the
years ended December 31, 2012, 2011 and 2010, respectively.
Ameriprise Certificate Company (‘‘ACC’’) is registered as an investment company under the Investment Company Act of
1940 (the ‘‘1940 Act’’). ACC markets and sells investment certificates to clients. ACC is subject to various capital
requirements under the 1940 Act, laws of the State of Minnesota and understandings with the Securities and Exchange
Commission (‘‘SEC’’) and the Minnesota Department of Commerce. The terms of the investment certificates issued by ACC
and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets. Under the provisions of its
certificates and the 1940 Act, ACC was required to have qualified assets (as that term is defined in Section 28(b) of the
1940 Act) in the amount of $3.5 billion and $2.8 billion at December 31, 2012 and 2011, respectively. ACC had
qualified assets of $3.7 billion and $2.9 billion at December 31, 2012 and 2011, respectively. Ameriprise Financial and
ACC entered into a Capital Support Agreement on March 2, 2009, pursuant to which Ameriprise Financial agrees to
commit such capital to ACC as is necessary to satisfy applicable minimum capital requirements, up to a maximum
commitment of $115 million. For the years ended December 31, 2012 and 2011, ACC did not draw upon the Capital
Support Agreement and had met all applicable capital requirements.
Threadneedle’s required capital is predominantly based on the requirements specified by its regulator, the Financial
Services Authority (‘‘FSA’’), under its Capital Adequacy Requirements for asset managers.
The Company has four broker-dealer subsidiaries, American Enterprise Investment Services Inc., Ameriprise Financial
Services, Inc., RiverSource Distributors, Inc. and Columbia Management Investment Distributors, Inc. The broker-dealers
are subject to the net capital requirements of the Financial Industry Regulatory Authority (‘‘FINRA’’) and the Uniform Net
Capital requirements of the SEC under Rule 15c3-1 of the Securities Exchange Act of 1934.
Ameriprise Trust Company is subject to capital adequacy requirements under the laws of the State of Minnesota as
enforced by the Minnesota Department of Commerce.
In 2012, Ameriprise Bank requested regulatory approval to convert from a federal savings bank to a limited powers
national trust bank. Conditional approval for this conversion was received in December 2012, and the conversion to a
limited powers national trust bank, as well as the renaming of the entity as Ameriprise National Trust Bank, was completed
in January 2013. Prior to this conversion, Ameriprise Bank, FSB was subject to regulation by both the Comptroller of
Currency (‘‘OCC’’), as a federal savings bank, and by the Federal Deposit Insurance Corporation (‘‘FDIC’’) in its role as
insurer of its deposits. Following the conversion, Ameriprise National Trust Bank remains subject to regulation by the OCC
and, to a limited extent, by the FDIC. As a limited powers national association, Ameriprise National Trust Bank remains
subject to supervision under various laws and regulations enforced by the OCC, including those related to capital adequacy,
liquidity and conflicts of interest.
20. Income Taxes
The Company retrospectively adopted a new accounting standard for DAC in the first quarter of 2012. See Note 1 for the
effect of the change on affected financial statement line items for prior periods retrospectively adjusted. Prior period
disclosures presented below have been retrospectively adjusted for the new accounting standard.
In 2012, the Company made two corrections to tax expense primarily attributable to prior periods. Management has
determined that the effect of these corrections is not material to the Consolidated Financial Statements for all current and
prior periods presented. See Note 1 for additional information on these corrections.
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