FINRA fines Ameriprise, clearing firm $750,000
WASHINGTON (AP) — The Financial Industry Regulatory Authority has fined financial services company Ameriprise and its affiliated clearing firm $750,000 for failing to supervise wire transfer requests and the transmittal of customer funds to third-party accounts.
FINRA, an independent regulator for all securities firms doing business in the U.S., said Monday that Ameriprise Financial Services Inc. and American Enterprise Investment Services Inc. did not admit or deny the charges.
FINRA said the matter goes back to 2011, when it barred former Ameriprise worker Jennifer Guelinas for converting about $790,000 from two customers over a four-year period by forging their signatures on wire transfer requests and sending the funds to bank accounts she controlled.
FINRA said that Minneapolis-based Ameriprise and AEIS didn't have supervisory systems in place to review and monitor the transmittal of customer funds to third-party accounts. The regulator said that the companies also failed to adequately track or further investigate wire transfer requests that had been rejected.
FINRA said there were multiple "red flags" that Ameriprise failed to pick up on. FINRA said that Ameriprise eventually fired Guelinas.
Shares of Ameriprise added 39 cents to $68.47 in afternoon trading. They are near the high end of their 52-week range of $45.17 last June and $69.34 in mid-February.