Breaking with its longtime strategy,
Ameriprise Financial Inc. soon will open its brokerage platform to allow its 12,000 representatives and advisers to sell variable annuities from outside providers. Until now, Ameriprise has confined its reps to selling the firm's own proprietary VA investments.
While no timetable for the expansion has been set, a number of sources familiar with the plan said it's likely to occur by the end of the second quarter. Most Ameriprise advisers now are limited to selling variable annuities created by RiverSource Investments LLC, the company's proprietary mutual funds, annuities and other investment products.
Expanding its brokerage platform to include other variable annuities could give Ameriprise a substantial boost to its ability to recruit independent contractor registered reps and advisers, sources inside and outside the firm said. Such advisers are also often big sellers of variable annuities, they said, and may be more willing to move Ameriprise because of the broader menu of investment options.
The Ameriprise platform is expanding to include three outside brands of variable annuities: Axa Equitable Life Insurance Co., Lincoln National Corp. and
MetLife Inc. Advisers will also be able to sell and maintain variable annuities from a number of other companies.
Ameriprise has been dogged in the retail securities business by a platform that is either limited or closed in terms of products and scope.
Formally American Express Financial Advisors Inc., the firm first opened its mutual fund platform in the late 1980s, adding a couple of fund families. In the 1990s, it added more options. It was spun off in 2005 by parent American Express Co.
“The market doubts Ameriprise's ability to change,” said one Ameriprise adviser, who asked not to be identified. “It took years to expand mutual funds. But, if Ameriprise makes changes [to its variable annuities choices], it could be a really powerful player in the market.”
This is the latest move the firm has made to strengthen its position to boost recruiting efforts. In November, it gutted and rebuilt its recruiting staff as part of an effort to bring in more independent reps.
The company has three networks of brokers under its umbrella: employees, owners of franchises who are essentially independent contractors, and reps and advisers with Securities America Inc., an independent broker-dealer. The change to the platform affects the employees and owners of franchises.
Ameriprise completed its acquisition of H&R Block Financial Advisors in 2008, and those brokers already have access to more than one variable annuity.
Chris Reese, an Ameriprise spokesman, declined to comment.
