Charles Schwab Says SEC Conducting Investigation Following Compliance Examination

By Sarah Coffey

Charles Schwab Corp. said the U.S. Securities and Exchange Commission is conducting an investigation following a compliance examination.

The publicly traded e-broker said the investigation largely concerns historic disclosures related to the Schwab Intelligent Portfolios digital advisory solution.

Schwab said it would take a $200 million liability and related non-deductible charge in its second quarter related to the investigation, with ultimate liability possibly differing depending on the matter's outcome.

Schwab said it has been cooperating with SEC staff in the investigation and is evaluating its options.

SIP is part of Schwab's digital advisory lineup, with almost $64 billion in client assets as of March 31, up 51% on a year-over-year basis.

Write to Sarah Coffey at sarah.coffey@wsj.com

(END) Dow Jones Newswires

July 02, 2021 06:42 ET (10:42 GMT)

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