Ameriprise 2015 Annual Report Download - page 42

Our financial advisors service clients who hold assets in IRAs and employer-sponsored retirement plan accounts. The
Employee Retirement Income Security Act of 1974, as amended (‘‘ERISA’’) and related provisions of the Internal Revenue
Code impose duties on persons who are fiduciaries under ERISA, and prohibit certain transactions (absent an exemption)
involving the assets of IRA and ERISA plan clients and certain transactions by the fiduciaries to the plans and IRAs. The
Department of Labor continues to pursue 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. These regulations focus on conflicts of interest related
to investment recommendations made by financial advisors or registered investment advisors to clients holding qualified
accounts and other types of ERISA clients as well as how financial advisors are able to discuss IRA rollovers. On
January 29, 2016, after a lengthy public comment period and public hearing, the Department of Labor sent a proposed
fiduciary rule to the Office of Management and Budget where the rule remains confidential until the final rule is published
in the Federal Register. We continue to review and analyze the potential impact of the proposed regulations on our clients
and prospective clients, as well as the potential impact on our business. We cannot predict how any final regulations may
differ from the proposed regulations.
Other agencies, exchanges and self-regulatory organizations of which certain of our broker-dealer subsidiaries are
members, and subject to applicable rules and regulations of, include the Commodities Futures Trading Commission
(‘‘CFTC’’) and the National Futures Association (‘‘NFA’’). Effective in August 2014, AFSI changed its registration from a
Futures Commission Merchant to a Commodity Trading Advisor with the CFTC. In addition, certain subsidiaries may also be
registered as insurance agencies and subject to the regulations described in the following sections.
Asset Management Regulation
In the U.S., certain of our asset management subsidiaries are registered as investment advisers under the Advisers Act and
subject to regulation by the SEC. The Advisers Act imposes numerous obligations on registered investment advisers,
including fiduciary duties, disclosure obligations and record-keeping, and operational and marketing restrictions. Our
registered investment advisers may also be subject to certain obligations of the Investment Company Act based on their
status as investment advisers to investment companies that we, or third parties, sponsor. As an outcome of the
Dodd-Frank Act, Congress is considering whether to increase the frequency of examinations of SEC-registered investment
advisers, including the authorization of one or more self-regulatory organizations to examine, subject to SEC oversight,
SEC-registered investment advisers. On December 11, 2015, the SEC approved a proposed rule designed to enhance
investor protection by limiting the use of derivatives by mutual funds, closed-end funds and ETFs, and requiring new risk
management measures with respect to derivatives. Comments on the proposed rules are currently due at the end of the
first quarter of 2016. We are currently assessing the impact of the proposed rule on our business, particularly with respect
to mutual funds and ETFs managed by Columbia Management. The timing of the final rules and implementation
timeframes are currently unclear. As noted earlier, we continue to see enhanced legislative and regulatory interest
regarding financial services in the U.S. through rules (and those yet to be implemented), regulatory priorities or general
discussion around risk retention requirements, expanded reporting requirements and transfer agent regulation.
Aspects of the regulation applicable to our Advice & Wealth Management segment also apply to our Asset Management
segment. For example, Columbia Management Investment Distributors, Inc. is registered with the CFTC and NFA as well as
registered as a broker-dealer for the limited purpose of acting as the principal underwriter and distributor for Columbia
Management funds. Additionally, ERISA and the U.S. Department of Labor’s proposed fiduciary rule impacts our global
asset management business and we continue to review and analyze the potential impact of the proposed regulations on
our clients and prospective clients, as well as the potential impact on our business across each of our business lines.
In connection with rules adopted by the CFTC, certain of our subsidiaries are registered with the CFTC as a commodity
trading advisor and commodity pool operator and are also members of the NFA. These rules adopted by the CFTC
eliminated or limited previously available exemptions and exclusions from many CFTC requirements and impose additional
registration and reporting requirements for operators of certain registered investment companies and certain other pooled
vehicles that use or trade in futures, swaps and other derivatives that are subject to CFTC regulation.
Outside of the U.S., our Threadneedle group is primarily authorized to conduct its financial services business in the UK
under the Financial Services and Markets Act 2000. Threadneedle is currently regulated by the Financial Conduct Authority
(‘‘FCA’’) and the Prudential Regulation Authority (‘‘PRA’’). FCA and PRA rules impose certain capital, operational and
compliance requirements and allow for disciplinary action in the event of noncompliance.
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 Markets in Financial Instruments Directive (‘‘MiFID’’), Alternative Investment Fund Managers Directive (‘‘AIFMD’’)
and European Market Infrastructure Regulation (‘‘EMIR’’). 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. EMIR is the EU equivalent of
20