Ameriprise 2014 Annual Report Download - page 38

Most of our applications run on a technology infrastructure managed on an outsourced basis by IBM since 2002. Under
this arrangement, IBM is responsible for all mainframe, mid-range, computing network and storage operations, which
includes a portion of our web hosting operations. Also, we outsource our voice network operations to AT&T. In addition to
these two arrangements, we outsourced our internal help desk, production support and a substantial portion of the
development and maintenance of our computer applications to other firms. In 2012, we completed a major replacement
of our brokerage and clearing platforms involving the transition of all of our all advisors and clients to the new technology
platform.
We have developed and maintain 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. 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, 2014, 2013 and 2012, approximately 89%, 89% and 89%, respectively, of our long-lived
assets were located in the United States and approximately 89%, 92% and 94%, respectively, of our net revenues were
generated in the United States. The majority of our foreign operations are conducted through Threadneedle, as described
in this Annual Report on Form 10-K under ‘‘Business — Our Segments — Asset Management.’’
Employees
At December 31, 2014, we had 12,209 employees, including 2,083 employee 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 and registered or filed
applications to register 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, Threadneedle, RiverSource
and Columbia Threadneedle Investments. We have in the past and will in the future take action to establish and protect
our intellectual property.
Regulation
Virtually all aspects of our business, including the activities of the parent company and our 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, restrictions on or prohibitions from engaging in certain
lines of business as well as reputational damage.
The regulatory environment in which our businesses operate remains subject to change and heightened regulatory scrutiny.
The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’) provided for sweeping changes
in the supervision and regulation of the financial services industry. 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. Subsequent regulatory developments both in and outside of the U.S. have also resulted or
are expected to result in greater regulatory oversight and internal compliance obligations for firms across the financial
services industry. These legal and regulatory changes 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.
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