|
| Company |
Problem
|
Date |
Fund Police Opinion
|
Rating |
|
|
American Express (changed name to Ameriprise)
|
The Massachusetts Securities Division has subpoenaed 15 banks and broker/dealers for improperly selling annuities to seniors. Customer complaints drove the investigation into whether seniors were being taken advantage of so brokers could collect large commissions.
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2/22/2005
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Visit our Annuities section for more info on this type of investment.
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
The company is being sued by the state of New Hampshire for fraudulent sales practices. The company held sales contests for advisors to sell their poor performing in-house funds over better performing funds from other companies.
|
2/22/2005
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Stay away from Advisors who sell you products to pay themselves better. Fee-only advisors do not have conflict of interests with investors because they do not recieve commissions. www.NAPFA.com
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
A petition of relief was filed by the New Hampshire Bureau of Securities Regulation against American Express.
|
2/21/2005
|
Unlike commissioned brokers, Fee-only advisors do not have a conflict of interest with their clients because they are not commissioned-based. Visit www.NAPFA.com for more info.
|
Red Light
|
|
|
American Express (changed name to Ameriprise)
|
American Express advisers were paid higher fees to sell underperforming Amex funds.
|
2/19/2005
|
"A financial planner or investment adviser has a fiduciary duty to act primarily for the benefit of the client. In this case, financial advisery plans were often merely a vehicle to promote and sell lackluster American Express mutual funds." Jeffrey Spill, Bureau of Securities deputy director.
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
The financial advisors unit of American Express is facing fraud charges.
|
2/18/2005
|
American Express is awarded another plaque on the "Wall of Shame"!
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
The company created incentives for its advisors to sell its own underperforming funds over competitors funds. Incentive programs included a 1 year paid lease on a Mercedes-Benz for promoting a new fund.
|
2/18/2005
|
This is a great example of conflict of interest. Fee-only advisors don't get commissions or rewards. Visit www.napfa.com for advisors who serve YOU.
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
The company failed to report information about their brokers to customers. The information included customer complaints, regulatory actions, criminal charges and convictions.
|
12/2/2004
|
Hiding information from your clients does not make the problem disappear. FP wonders what else are they hiding? FP warns you to steer clear of companies who have “baggage” and are unwilling to come clean.
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
Distributed six-page letter describing all costs and conflicts about their mutual funds.
|
8/2/2004
|
If an investment takes six pages to explain all of the conflicts of interest and potential for confusion then it's time for major reform. Amex gets kudos for the effort to disclose. SEC gets low marks for how little reform has taken place.
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
Lawsuit filed, charging the company with "excessive" mutual-fund fees.
|
7/30/2004
|
Unlike Alliance, Amex isn't willing to admit that investors may be paying too much.
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
Announce it may be charged by the SEC for failing to give breakpoint discounts.
|
1/15/2004
|
Unlike Alliance, Amex isn't willing to admit that investors may be paying too much.
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
Announce it may be charged by the SEC for failing to give breakpoint discounts.
|
11/17/2003
|
Unlike Alliance, Amex isn't willing to admit that investors may be paying too much.
|
Red Light
|
|
American Express (changed name to Ameriprise)
|
Failed to give appropriate discounts on mutual fund purchases.
|
11/12/2003
|
Below average performance for many years. Beware of financial salespeople disguised as unbiased financial planners.
|
Red Light
|
|
American Funds
|
Preferred by A.G. Edwards, American was paying kickbacks to brokers to sell their funds.
|
4/14/2005
|
Bite the hand that feeds you if the food is bad!
|
Red Light
|
|
American Funds
|
The manager for American Funds, Capital Research and Management, may have improperly paid extra commissions to brokers for selling their funds.
|
4/1/2005
|
Commission-based brokers are making even more money off of you than you think. Visit www.napfa.com for FEE-ONLY advisors who won't rip you off.
|
Red Light
|
|
American Funds
|
California's Attorney General is counter-filing a suit against American for inadequately informing investors about shelf-space payments made to brokerage companies to sell their funds.
|
3/28/2005
|
The AG is looking out for YOU. American is not.
|
Red Light
|
|
American Funds
|
American Funds violated the NASD's "AntiReciprocal Rule" when they directed $100 million in brokerage commissions over a three year period to companies that were top sellers of their funds.
|
3/1/2005
|
Unbiased advice only comes from Fee-only advisors. Visit www.napfa.com for more info.
|
Red Light
|
|
American Funds
|
American Funds paid $100 million to brokers in commissions who sold their funds between 2001 and 2003.
|
2/17/2005
|
Like the saying goes, if it sounds too good to be true, it probably is. American Funds performace appears to have been inflated by their directed brokerage. We are moving their status from Yellow to Red.
|
Red Light
|
|
American Funds
|
American Funds made payments to Edward Jones brokers to favor their funds when selling to clients.
|
12/23/2004
|
American has started to take on some negative publicity. ED Jones was already falling fast.
|
Red Light
|
|
American Funds
|
American Funds were found to be steering business to Morgan Stanley in exchange for favoring their funds. American Funds had disclosed to investors this type of practice, but regulators are concerned that companies were improperly using stock trading to reward brokers.
|
11/15/2004
|
This fund group had skated by untouched prior to this. Asset bloat may become an issue.
|
Red Light
|
|
American Funds
|
Due to the mutual funds scandal, funds that remained above the scandal, like American, are seeing a large increase in asset size and inflows.
|
9/27/2004
|
There has seldom been a case where asset bloat has not eventually caused performance to trial off. While American is a great family, with no scandal issues, you could look back in 10 years and wish you had invested with funds that were smaller in size that produced better results. Example: look what happened when Fidelity Magellan got so big.
|
Red Light
|
|
American Funds
|
Due to Mutual Fund Scandals, American Funds have seen a large increase in investments. Potential for problem with bulging assets under management.
|
8/5/2004
|
Great long term track record and low expenses. Most investors are sold 5.75% commission front end load "A" shares. FundPolice is worried that huge influx of new money may decrease future performance advantage.
|
Red Light
|
|
American Funds
|
Parent company, Capital Research and Management is under investigation for directed brokerage practices.
|
8/1/2004
|
Great long term track record and low expenses. Most investors are sold 5.75% commission front end load "A" shares. FundPolice is worried that huge influx of new money may decrease future performance advantage.
|
Red Light
|
|
Ameriprise (Formerly American Express)
|
The company was fined a total of $59.3 million by the SEC, the NASD, and the state of Minnesota to settle charges of illegal mutual fund share trading and brokerage misconduct.
|
12/2/2005
|
Ameriprise, formerly American Express, is awarded another plaque on the "Wall of Shame"!
|
Red Light
|
|
Ameriprise (Formerly American Express)
|
The company was fined a total of $1.25 M for not properly supervising the sale of 529 college savings plans.
|
10/31/2005
|
Ameriprise, a spin-off of American Express, continues to be consistently in the news for conflicts of interest. Throw the bums out!!
|
Red Light
|
|
Ameriprise (Formerly American Express)
|
The company must pay $22 milion to Exxon Mobil retirees who accused the unit and a broker of fraud.
|
5/17/2006
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner.
|
Red Light
|
|
Aon
|
Aon is being investigated for their practice of steering business to insurance companies in exchange for business for Aon.
|
10/19/2004
|
Spitzer has implied that AON was part of the "Cartel" designed by M & M to skim money from customers. FP says STAY AWAY. "Not aware", more like looking the other way while AON cashed the extra checks.
|
Red Light
|
|
Aon
|
Investigators are looking into whether or not Aon Corp. was invovled in bid-rigging following the Marsh and McLennan investigation. Also may have been involved in directing business to insurers who would in turn use Aon's services.
|
10/18/2004
|
Spitzer has implied that AON was part of the "Cartel" designed by M & M to skim money from customers. FP says STAY AWAY.
|
Red Light
|
|
AXA
|
Involved in connection with receiving directed brokerage in exchange for preferential treatment from a number of mutual fund companies.
|
6/8/2005
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
AXA
|
The company failed to report information about their brokers to customers. The information included customer complaints, regulatory actions, criminal charges and convictions.
|
12/2/2004
|
Hiding information from your clients does not make the problem disappear. FP wonders what else are they hiding? FP warns you to steer clear of companies who have “baggage” and are unwilling to come clean.
|
Red Light
|
|
Banc One
|
Banc One was charged with late-trading. The company failed to supervise their trading.
|
1/13/2005
|
Throw the bums out! FP does not endorse companies that have not shown they are reliable with investors' money.
|
Red Light
|
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