Ameriprise Financial is ending its relationship with Securities America, home to some 1,800 independent contracting brokers.  The La Vista, NB-based broker-dealer sub of Ameriprise just this month avoided a class-action lawsuit by investors who claim they lost $400 million on private placements sold by the firm - by agreeing to pay investors $180 million - $150mn of which will be paid by Ameriprise.

Ameriprise said in a statement:  a sale would allow Securities America “to focus on growth opportunities in the independent channel and would allow Ameriprise to devote its resources to the Ameriprise branded-adviser business.”   “The sale process will not affect management’s commitment to completion of the settlement on its current terms.”

Securities America was founded in 1984 and according to its Web site has almost 500,000 customers across the country.  The settlement, which is for investors who bought notes in Medical Capital and Provident Royalties, was a black eye for both Ameriprise and Securities America.  Securities America's apparently failed to provide adequate due diligence in those deals. 

Securities America said in a statement:  "We appreciate the many years Ameriprise has committed to our independent business model.”   “Their willingness to provide the financial means for the Medical Capital and Provident Royalties settlement leaves Securities America in a strong financial position to continue operations with no disruptions. We believe there are many options that will afford enhanced opportunities and benefits to our advisers and employees. Our record first-quarter results make this an opportune time for an ownership change.”

        Ameriprise Earnings.   The company announced that Q1 profits in 2011 were 13% higher than those for 2010 - $241 million vs. $214 million.  Revenues also climbed 16%, to $2.67 billion from $2.29 billion largely on asset-based fee growth from the acquisition of Columbia Management, market appreciation and retail clients.  Total assets under management and administration were $693 billion at 3/31/11, up 50% from a year ago.   [Minneapolis / St. Paul Business Journal, 4/26; BusinessWeek, 11/25, et al]