Charles Schwab (SCHW) has been responding to an investigation by the U.S. SEC arising from compliance examination

Charles Schwab (NYSE: SCHW) disclosed:

The company has been responding to an investigation by the U.S. Securities and Exchange Commission (SEC) arising from a compliance examination. The investigation largely concerns historic disclosures related to the Schwab Intelligent Portfolios® (SIP) digital advisory solution.

The company has been cooperating with SEC staff in the investigation and is evaluating its options. Given the investigation’s status, Schwab’s second quarter 2021 financial results will include a liability and related non-deductible charge of $200 million. The company’s ultimate liability may differ, depending on the outcome of the matter.

The company intends to continue cooperating with the SEC with the goal of resolving this matter and remains focused on its core purpose of helping investors achieve their financial goals. SIP is well established as a key component of our digital advisory lineup, which served almost $64 billion in client assets as of March 31, 2021 – up 51% on a year-over-year basis.

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