UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 77497 / April 1, 2016

ADMINISTRATIVE PROCEEDING

File No. 3-12114

In the Matter of

American Express Financial Corporation 

(now known as Ameriprise Financial, Inc.)

Respondent.

NOTICE OF PROPOSED PLAN OF 

DISTRIBUTION AND OPPORTUNITY 

FOR COMMENT

Notice is hereby given, pursuant to Rule 1103 of the Securities and Exchange Commission’s 

(“Commission”) Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103, that the 

Division of Enforcement has submitted to the Commission a proposed plan (“Distribution Plan”) for 

the distribution of monies placed into a Fair Fund in the above-captioned matter.

On December 1, 2005, the Commission issued an Order Instituting Administrative and 

Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Ceaseand-Desist Order Pursuant to Sections 203(e) and 203(k) of the Investment Advisors Act of 1940 

and Sections 9(b) and 9(f) of the Investment Company Act of 1940 (“Order”) against Respondent 

American Express Financial Corporation (“AEFC” or “Respondent”).1 The Order found that 

AEFC allowed market timing in certain of its mutual funds and variable annuity products from 

January 1, 2002 through October 2003 that was contrary to fund prospectuses and not disclosed to 

shareholders and AEFC directors. The Order required Respondent to pay disgorgement of 

$10,000,000 and a civil money penalty of $5,000,000 and established a Fair Fund in the total 

amount of $15,000,000 for a distribution to harmed investors pursuant to Section 308(a) of the 

Sarbanes-Oxley Act of 2002.

 

1 Advisers Act Rel. No. 2451 (December 1, 2005).
OPPORTUNITY FOR COMMENT

Pursuant to this Notice, all interested parties are advised that they may print a copy of the 

Distribution Plan from the Commission’s public website at 

http://www.sec.gov/litigation/fairfundlist.htm. Interested parties may also obtain a written copy 

of the Distribution Plan by submitting a written request to Kara M. Washington, United States 

Securities and Exchange Commission, 175 West Jackson Boulevard, Suite 900, Chicago, Illinois 

60604. All persons who desire to comment on the Distribution Plan may submit their comments, 

in writing, no later than thirty (30) days from the date of this Notice:

1. to the Office of the Secretary, United States Securities and Exchange Commission, 

100 F Street, N.E., Washington, DC 20549-1090;

2. by using the Commission’s Internet comment form 

(http://www.sec.gov/litigation/admin.shtml); or

3. by sending an e-mail to rule-comments@sec.gov. 

Comments submitted should include “Administrative Proceeding File No. 3-12114” in the subject 

line. Comments received will be publicly available. Persons should submit only information that 

they wish to make publicly available.

THE DISTRIBUTION PLAN

The Distribution Plan provides for distribution of the Fair Fund established in this matter, 

which contains $15,000,000 million in disgorgement and civil penalties paid by Respondent, plus 

accumulated interest, to eligible investors. Eligible investors are those investors who suffered 

losses to their holdings in AEFC funds as a result of market-timing activity between January 1, 

2002 and September 30, 2003. As proposed in the Distribution Plan, if approved, eligible investors 

will receive a share of the Fair Fund as calculated by the Fund Administrator. The calculation will 

be based on records obtained from AEFC and certain other entities that are shareholders of record. 

Accordingly, eligible investors do not need to submit a claim in order to be considered for a 

distribution, and no claims procedure will be implemented.

By the Commission.

Brent J. Fields

Secretary