Ameriprise financial advisors are fiduciaries some of the time, not all of the time. Whether an Ameriprise advisor owes you a fiduciary duty depends on which type of account you hold and which service they are providing at that moment. In an investment advisory account, the fiduciary standard of the Investment Advisers Act of 1940 applies. In a commission-based brokerage account, a different and lower standard — Regulation Best Interest — governs the relationship instead.
Why the Answer Isn’t a Simple Yes or No
Ameriprise Financial Services, LLC holds two separate registrations. FINRA recognizes it as a brokerage firm, and the SEC recognizes it as a registered investment adviser.1FINRA. Ameriprise Financial Services, LLC – BrokerCheck2Investment Adviser Public Disclosure. Ameriprise Financial Services, LLC – Brokerage/Investment Adviser Firm That dual status means the same person you meet with can operate under two different legal standards, depending on what you are asking them to do.
Your advisor could owe you a fiduciary duty during a morning meeting about your managed portfolio, then operate under a lower standard when recommending a mutual fund purchase through your brokerage account that afternoon. The legal obligation is tied to the type of account and service, not the advisor’s job title. Many large financial institutions use this same structure. Investors who don’t understand it may assume they are always receiving fiduciary-level care when they are not.
When Ameriprise Advisors Act as Fiduciaries
When an Ameriprise advisor manages your assets through an advisory account, typically a wrap-fee or managed account program, they are acting as an investment adviser and owe you a fiduciary duty under the Investment Advisers Act of 1940. Section 206 of that law prohibits advisers from employing any scheme to defraud a client, engaging in any practice that operates as fraud or deceit, or trading from their own account with a client without written disclosure and consent.3GovInfo. Investment Advisers Act of 1940
Courts and the SEC have read those provisions to impose two core obligations. The duty of care requires the advisor to give advice that is in your best interest based on your individual financial situation. The duty of loyalty requires the advisor to put your interests ahead of their own and to disclose all conflicts of interest that could influence their recommendations, including how they are compensated and whether they receive incentives for choosing certain investments.4Interactive Brokers. Investment Advisers Act of 1940 – Fiduciary Duty – Spotlight On
The fiduciary standard also covers what the Advisers Act calls “investment supervisory services,” meaning continuous advice based on your individual needs.5Office of the Law Revision Counsel. 15 US Code 80b-2 – Definitions Your advisor has an ongoing obligation to monitor your portfolio and adjust recommendations as your circumstances change, not just at the moment a trade is placed. When an advisor fails to uphold these duties, the SEC can bring enforcement actions that result in penalties, censures, or suspensions.6U.S. Securities and Exchange Commission. SEC Charges Investment Adviser and Two Officers for Misuse of Fund and Portfolio Company Assets
When They Don’t
When an Ameriprise advisor facilitates a stock purchase, mutual fund sale, or other securities transaction for a commission, they are acting as a broker. In that capacity, they do not owe you a fiduciary duty. They must follow Regulation Best Interest, a SEC rule codified at 17 CFR 240.15l-1.7eCFR. 17 CFR 240.15l-1 – Regulation Best Interest
Regulation Best Interest requires a broker to exercise reasonable diligence, care, and skill when making a recommendation. The broker must have a reasonable basis to believe the recommendation is in your best interest based on your investment profile, and cannot place their own financial interests ahead of yours at the time of the recommendation. When a broker recommends a series of transactions, they must also have a reasonable basis to believe the series is not excessive when taken together.7eCFR. 17 CFR 240.15l-1 – Regulation Best Interest
The critical difference is timing. Regulation Best Interest applies at the point of recommendation, not on an ongoing basis. Once a brokerage transaction is complete, the broker generally has no continuing legal obligation to monitor how that investment performs or to alert you if conditions change. Under a fiduciary advisory relationship, the monitoring duty exists for as long as the relationship lasts. In a brokerage account, if market conditions shift, you are largely responsible for deciding when to act.
Conflicts of Interest That Persist in Advisory Accounts
The fiduciary label does not eliminate financial incentives that push against your interests. Ameriprise participates in mutual fund programs where fund companies pay asset-based fees for inclusion on the Ameriprise platform. The firm discloses that its advisors generally have a greater incentive to offer funds from “full participation” firms — fund companies that pay Ameriprise more in revenue sharing and provide training and support to its advisors. Ameriprise also acknowledges that when two similar mutual funds are equally recommendable, its investment research group prefers the fund from a full participation firm.8Ameriprise Financial. Purchasing Mutual Funds and 529 Plans Through Ameriprise Financial
Ameriprise further states that it generally receives more revenue from sales of its own affiliated mutual funds than from sales of other funds, and that certain employees may receive higher compensation based in part on assets invested in affiliated products. For 2024, the firm received over $374 million in mutual fund cost reimbursement payments from participating fund companies.8Ameriprise Financial. Purchasing Mutual Funds and 529 Plans Through Ameriprise Financial
These conflicts have led to regulatory action before. In 2018, the SEC found that from at least 2010 through 2015, Ameriprise sold certain retirement plan customers more expensive mutual fund share classes when they were eligible for cheaper, load-waived versions available on the same platform. The firm earned more revenue from the pricier share classes but failed to disclose that fact. Affected customers paid approximately $1.78 million in unnecessary charges, which Ameriprise later reimbursed along with roughly $191,000 in interest.9SEC.gov. Order Instituting Administrative and Cease-and-Desist Proceedings – Ameriprise Financial Services
Cash sweep programs are another pressure point. Ameriprise’s brokerage accounts default uninvested cash into the firm’s affiliated bank, where the firm earns a spread on the interest. A lawsuit has alleged that the rates Ameriprise offered on these cash balances were substantially lower than those available through competitors.
How to Tell Which Standard Applies to Your Account
Read the Ameriprise Form CRS
The most direct way to understand which standard applies is to read the firm’s Client Relationship Summary, known as Form CRS. Federal regulations require every registered investment adviser and broker-dealer to deliver this document to retail investors before or at the time the relationship begins.10eCFR. 17 CFR 275.204-5 – Delivery of Form CRS Form CRS must use prescribed language set by the SEC to describe the firm’s legal obligations, so the firm cannot substitute marketing language for the required standard-of-conduct disclosure.11U.S. Securities and Exchange Commission. Frequently Asked Questions on Form CRS Ameriprise’s Form CRS is available on the firm’s website and confirms it offers both brokerage and advisory services with different applicable standards.12Ameriprise Financial. Ameriprise Client Relationship Summary Form CRS
Check Your Engagement Agreement
Your individual account agreement specifies the fee structure and the exact capacity in which the advisor is serving for that account. If the agreement describes an ongoing asset-based fee and references investment advisory services, you are likely in a fiduciary advisory relationship. If it describes per-transaction commissions and references brokerage services, Regulation Best Interest applies instead. When in doubt, ask your advisor directly: “Are you acting as my fiduciary for this account?” The answer may differ from one account to another even within the same relationship.
Look Up the Advisor on BrokerCheck
FINRA’s BrokerCheck tool at brokercheck.finra.org lets you look up any registered broker or advisory firm, including Ameriprise and its individual advisors. A BrokerCheck report includes customer disputes, disciplinary events, and certain criminal and financial matters on the individual’s or firm’s record.13FINRA.org. About BrokerCheck For individual brokers, the report also covers regulatory complaints, investigations, termination events, and investment-related civil court actions.
If You Believe the Duty Was Breached
Most disputes with brokerage firms and their advisors are resolved through FINRA arbitration rather than court litigation. You submit a Statement of Claim describing the dispute and damages, a signed Submission Agreement, and a filing fee based on the size of your claim. Claims are filed through FINRA’s online DR Portal, though investors representing themselves may file by mail. Before filing formally, FINRA recommends trying to resolve the issue directly with the firm. You can also file an Investor Complaint with FINRA or call the FINRA Securities Helpline for Seniors at 844-574-3577 if the dispute involves an older investor.14FINRA.org. File an Arbitration or Mediation Claim
If you believe an advisor violated their fiduciary duty under the Investment Advisers Act or Regulation Best Interest, you can also submit a tip to the SEC through its online Tips, Complaints and Referrals Portal.15U.S. Securities and Exchange Commission. Information About Submitting a Whistleblower Tip