Ameriprise 2013 Annual Report Download - page 38

advice provided with respect to retail investment products, including open-ended and closed-ended funds and structured
products.
In addition to the above, certain of our asset management subsidiaries, such as Threadneedle’s UK and other European
subsidiaries, are required to comply with pan-European directives issued by the European Commission, as adopted by E.U.
member states. For example, Threadneedle and certain of our other asset management subsidiaries are required to comply
with the Alternative Investment Fund Managers Directive (‘‘AIFMD’’), European Market Infrastructure Regulation (‘‘EMIR’’)
and Capital Requirements Directive IV. These regulations are impacting the way we manage assets and place, settle and
report on trades for our clients, as well as market to clients and prospects. With regard to AIFMD, grandfathering of certain
compliance obligations under AIFMD, including for several of our asset management subsidiaries, expires on July 22, 2014
and additional regulatory filings and are being made and further regulatory permissions are being sought as and where
required. EMIR is the EU equivalent of Title VII Dodd-Frank (and provides a framework for the regulation of over the counter
and exchange-traded derivative markets). EMIR is being implemented in a number of phases that began in August 2012.
We have been engaging with clients, counterparties, trade repositories, trading platforms and intermediaries to implement
the documentation, operational procedures and arrangements needed to facilitate EMIR compliance for our asset
management clients.
In Singapore, our asset management subsidiary Threadneedle Investments Singapore (Pte.) Ltd. (‘‘Threadneedle
Singapore’’) is regulated by the Monetary Authority of Singapore (‘‘MAS’’) under the Securities and Futures Act.
Threadneedle Singapore holds a capital markets services license with MAS, and employees of Threadneedle Singapore
engaging in regulated activities are also required to be licensed. MAS rules impose certain capital, operational and
compliance requirements and allow for disciplinary action in the event of noncompliance.
Threadneedle companies and activities are also subject to other local country regulations in Europe, Dubai, Hong Kong,
Malaysia, Taiwan, the U.S. and Australia. Additionally, many of our subsidiaries, including Columbia Management, are also
subject to foreign, state and local laws with respect to advisory services that are offered and provided by these
subsidiaries, including services provided to government pension plans. Foreign and state governments may also institute
proceedings and impose sanctions for violations of their local laws, which may include fines, censure or the suspension or
termination of the right to do certain types of business in a state or country.
ATC is primarily regulated by the Minnesota Department of Commerce (Banking Division) and is subject to capital adequacy
requirements under Minnesota law. It may not accept deposits or make personal or commercial loans. As a provider of
products and services to tax-qualified retirement plans and IRAs, certain aspects of our business, including the activities of
our trust company, fall within the compliance oversight of the U.S. Departments of Labor and Treasury, particularly
regarding the enforcement of the Employee Retirement Income Security Act of 1974, as amended (‘‘ERISA’’), and the tax
reporting requirements applicable to such accounts. ATC, as well as our investment adviser subsidiaries, may be subject to
ERISA, and the regulations thereunder, insofar as they act as a ‘‘fiduciary’’ under ERISA with respect to certain ERISA
clients. ERISA and related provisions of the Internal Revenue Code impose duties on persons who are fiduciaries under
ERISA, and prohibit certain transactions involving the assets of ERISA plan clients and certain transactions by the
fiduciaries to the plans. The Department of Labor intends to re-propose regulations that would significantly expand the
scope of who is considered an ERISA fiduciary and what activity constitutes acting as an ERISA fiduciary, while prohibiting
certain additional types of transactions conducted by persons who are considered fiduciaries.
Insurance Regulation
Our insurance subsidiaries are subject to supervision and regulation by states and other territories where they are
domiciled or otherwise licensed to do business. The primary purpose of this regulation and supervision is to protect the
interests of contractholders and policyholders. In general, state insurance laws and regulations govern standards of
solvency, capital requirements, the licensing of insurers and their agents, premium rates, policy forms, the nature of and
limitations on investments, periodic reporting requirements and other matters. In addition, state regulators conduct periodic
examinations into insurer market conduct and compliance with insurance and securities laws. The Minnesota Department
of Commerce, the Wisconsin Office of the Commissioner of Insurance, and the New York State Department of Financial
Services (the ‘‘Domiciliary Regulators’’) regulate certain of the RiverSource Life companies, and the Property Casualty
companies depending on each company’s state of domicile. In addition to being regulated by their Domiciliary Regulators,
our RiverSource Life companies and Property Casualty companies are regulated by each of the insurance regulators in the
states where each is authorized to transact business. Financial regulation of our RiverSource Life companies and Property
Casualty companies is extensive, and their financial transactions (such as intercompany dividends and investment activity)
are often subject to pre-notification and continuing evaluation by the Domiciliary Regulators.
Virtually all states require participation in insurance guaranty associations, which assess fees to insurance companies in
order to fund claims of policyholders and contractholders of insolvent insurance companies subject to statutory limits.
These assessments are generally based on a member insurer’s proportionate share of all premiums written by member
insurers in the state during a specified period prior to an insolvency. See Note 23 to our Consolidated Financial
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