American Express Financial Corporation
On December 1, 2005, the SEC instituted settled administrative and
cease-and-desist proceedings against American Express Financial
Corporation (now known as Ameriprise Financial, Inc.). The SEC alleged,
among other things, that AEFC did not adequately disclose to shareholders
in the funds it advised, the American Express Funds, certain market timing
activities that were inconsistent with the disclosures in the funds'
prospectuses. As part of the settlement, AEFC has agreed to pay a total of
$15 million in disgorgement and civil penalties to be distributed to
benefit investors in the American Express Funds for market timing activity
that took place between January 1, 2002, and September 30, 2003. For more
information on the SEC's action, you can read In the Matter of American
Express Financial Corporation (now known as Ameriprise Financial, Inc.),
Rel. No. IA-2451 (Dec. 1,
2005).
Under the terms of the SEC's Order, AEFC, through an independent
distribution consultant, must submit a distribution plan to the SEC to
distribute the total amount of the $15 million. Once the distribution plan
is submitted for SEC approval, it will be published for public comment.
http://www.sec.gov/divisions/enforce/claims/aefc.htm