Instead, NASD found, between May 2001 and October 2003, Ameriprise advised all of its customers to invest in the 529 plan of Wisconsin, which was the only 529 plan that Ameriprise carried and sold in that time period. About $200 million, or 32%, of these sales were to customers in five states that offer tax deductions: New Mexico, South Carolina, Illinois, Colorado and West Virginia.
Ameriprise neither confirmed nor denied the allegations. "We are pleased to have resolved this matter, and we have modified our procedures with respect to 529 plans," said David Kanihan, a spokesman for Ameriprise.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.