Ameriprise Financial is a controversial financial advisor with more than 12,000 "employees". Most of the company's financial advisers are Certified Financial Planners, but the majority of them don't technically work for Ameriprise. Rather, these independent contractor franchisees merely use the company's infrastructure to collect a commission on various investment products sold to clients.
Ameriprise has been subject to millions of dollars in government fines since it was spun off from American Express in 2005. The company has repeatedly been investigated by the NASD and is widely recognized throughout the investment world as a company whose business plan requires it to breach its fiduciary duty to clients. The company charges a flat rate for a "financial plan" and then accepts various kickbacks and commissions on the products that clients purchase in order to utilize the "plan". The company has been routinely investigated for pushing risky, high-fee products on financially ignorant retirees.
American Express was exceedingly wise to get rid of Ameriprise Financial. The company is little more than a glorified pyramid scheme that uses and abuses its clients. The stock market has been rising recently, so even retirees who get swindled by Ameriprise have probably been making money. But the lawsuits will come fast and furious when the market stalls and Ameriprise's tactics come to light as retirees wonder where all their money went.
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