Ameriprise Financial Services, LLC has agreed to pay a fine of $450,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

Between January 2015 and December 2018, Ameriprise failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to supervise recommendations of certain variable annuity exchanges involving contracts with guaranteed lifetime withdrawal benefit (GLWB) riders.

Specifically, Ameriprise did not provide sufficient guidance to registered principals for determining whether certain customers would benefit sufficiently from the rider’s growth credit feature before commencing withdrawals to justify the higher fees, which applied for the duration of the contract.

Accordingly, Ameriprise violated FINRA Rules 3110, 2330(c) and (d), and 2010.

The firm has agreed to a censure on top of the $450,000 fine. Ameriprise was also ordered to pay restitution of $993,950.47.

Ameriprise has been a FINRA member since 1972. The firm is headquartered in Minneapolis, Minnesota, has almost 15,000 registered representatives. The firm conducts a general securities business and offers investment products and services, including variable annuities, to retail customers.