When we provide you with a recommendation as your broker-dealer or act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations and investment advice we provide you. Here are some examples to help you understand what this means.

When you purchase an investment product such as a mutual fund or annuity that includes internal fees for management and other services, Ameriprise earns more money than if you purchase an investment that does not have internal fees such as a stock or bond. This is because Ameriprise generally receives a portion of these fees from the service providers to these investment products, which helps fund the cost of maintaining accounts and offering an investment platform to our clients.
When you hold a brokerage or advisory account with us, we’ll earn revenue on your cash within our sweep programs. If your cash is swept to our affiliated bank, then Ameriprise Bank, FSB earns “spread revenue” — the difference between the revenue it earns and the interest it pays you — on your deposits. This spread revenue compensates our bank for the operational costs and risks it bears. Our affiliated clearing brokerdealer receives revenue sharing from our mutual fund sweep program and receives payments from third-party banks with respect to our multi-bank sweep program.
When you purchase an investment product from a company affiliated with Ameriprise, we receive revenue associated with the fees charged by the product for the services provided to you. Examples of affiliated products include: Columbia Threadneedle investments, RiverSource annuities or life insurance and Ameriprise certificates.
Certain products we offer, such as individual bonds, can be purchased from or sold directly to our affiliated clearing broker-dealer through what is referred to as a principal trade. By conducting a principal trade, we are often able to provide greater liquidity and access to securities. Our clearing broker-dealer affiliate generally receives more compensation from principal trades than trades that occur in the market.

AMERIPRISE FINANCIAL SERVICES

New York, NY 10007

Patrick Hugh O'connell

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