Employee financial advisors and associate financial advisors receive a salary from Ameriprise Financial Services or the independent contractor franchisee advisor, respectively.
A portion of the fees you pay on our products and services go to your financial advisor in the form of commissions. The amount depends on the qualification rate of your financial advisor and the amount of fees you pay.
Of the advisory fees and product commissions ("advisor payout rate") you pay, independent contractor franchisees generally receive 72-91%. Employee financial advisors receive roughly 37-60%.
Your financial advisor may also receive referral fees when you purchase certain banking products and services or Ameriprise® Auto and Home insurance products.
Ameriprise Financial has promotional agreements with certain product companies. These companies may pay for training and education events, such as seminars for employees, financial advisors, clients and prospective clients, or due diligence meetings.
For employees and financial advisors, these events may be held at off-site locations and the travel, meals and accommodations may be paid for by the product company. Additionally, these companies may occasionally provide business or recreational entertainment or gifts of nominal value to employees and financial advisors.
Ameriprise Financial may, from time to time, offer contests, incentive programs, premiums or promotions to individual financial advisors or groups of financial advisors in particular areas. These programs may provide cash and/or non-cash compensation to financial advisors for sales of particular products or services.
These incentive programs and cash and/or non-cash compensation are strictly regulated by SEC and FINRA regulations, as well as Ameriprise Financial Services' internal compliance policies.
We encourage all our employees and financial advisors to take an ownership stake in our future by holding stock in our parent company, Ameriprise Financial, Inc. To make this possible for financial advisors, we created three equity programs for them.
In December 2005, eligible financial advisors qualified for a one-time future interest in Ameriprise Financial stock. In addition, independent contractor franchisee advisors may be eligible to defer a certain percentage of their compensation each year in exchange for a future interest in Ameriprise Financial stock, determined by product sales, including a minimum level of revenue generated from financial advisory fees.
Some employee financial advisors receive restricted equity grants.
Ameriprise Financial participates in a mortgage loan program with EverBank®, an unaffiliated financial institution. Pending receipt of all required regulatory approvals to organize, Ameriprise Bank, FSB, which will be an affiliate of Ameriprise Financial Services, may also be a participant in this loan program.
Financial advisors may be authorized to provide loan origination services as part-time employees of EverBank. While acting in their capacity as mortgage originators, financial advisors are not acting on behalf of Ameriprise Financial.
EverBank will compensate the financial advisors for services in connection with originating and processing loans. Ameriprise Bank may also compensate financial advisors for services in connection with originating and processing loans.
Ameriprise Financial Services, Inc. Member FINRA and SIPC.
© Ameriprise Financial, Inc. 2006. All rights reserved.
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