SEC completes distribution of $42M fair fund for improper mutual fund practice

The SEC continued its recent string of Fair Funds distributions on Thursday, announcing the completion of a nearly $32 million Fair Fund distribution to current and former customers of Ameriprise Financial Services, Inc. (formerly known as American Express Financial Advisors Inc.) The SEC stated that approximately 575,000 investors were affected by what it alleged were improper mutual fund practices. On April 9, 2008, the SEC approved a distribution plan, and appointed Nelson S. Kibler as the fund administrator responsible for distributing the Fair Fund.

Since June 2008, the SEC has announced Fair Funds distributions in seven other settlements: Franklin-Templeton Investments ($49 million); Banc of America Capital Management ($103 million); Banc of America Securities ($26 million); Spear & Jackson ($5.6 million); Vivendi Universal ($48 million); Janus Capital Management ($18 million); and Putnam Investment Management ($40 million).