Schwab Statement on Settlement with SEC Regarding 2015-2018 Disclosures for Schwab Intelligent Portfolios® – InsuranceNewsNet


The Charles Schwab Company announced today that it has reached an agreement with the US Securities and Exchange Commission to resolve an investigation into historical disclosures related to the Schwab Intelligent Portfolios (SIP) consulting solution. The company released the following statement:

“Schwab has fixed an issue with the SECOND regarding certain historical disclosures and advertisements related to Schwab smart wallets between 2015 and 2018, and we are happy to put that behind us. The SEC order acknowledges that Schwab addressed these issues years ago.

“In entering into the settlement, Schwab neither admits nor denies the allegations contained in the SEC order. We believe that resolving the issue in this manner is in the best interests of our customers, our company and our shareholders, as it keeps us focused on helping our clients invest in the future.As always, we are committed to earning the trust of our clients every day and working diligently to maintain the highest standards of professional conduct. high throughout our organization.

“SIP is a key part of our portfolio of advisory services and an important way to help clients invest for the future in a diversified way. The SIP was designed to provide clients with competitive returns in different market environments and the ability to help overcome volatility or difficult market conditions over time. The service recommends a diversified portfolio based on a client’s goals, time horizon and risk profile, and keeps allocation consistent through automated rebalancing as markets fluctuate to help a client stay focused about their long-term financial goals. We are proud to have created a product that allows investors to choose not to pay an advisory fee in exchange for the ability to hold a portion of the proceeds in cash, and we make no secret of the fact that our company generates income for the services we provide. We believe that liquidity is a key part of any solid investment strategy through different market cycles.

“Schwab has been democratizing investing for nearly half a century, and the SIP is a direct reflection of that direction. With its innovative approach and focus on individual client needs, SIP has transformed the investment advisory space, making it easier for more investors to access the benefits of professional management. money. Since SIP’s launch in 2015, it has delivered strong performance aligned with each portfolio’s risk profile and asset allocation. Hundreds of thousands of Americans have benefited from SIP’s automated and diverse portfolios, which deliver value, sophistication, tailored solutions and 24/7 support.

The settlement with the SECOND involved Schwab Wealth Investment Advisory, Inc., Charles Schwab Investment Advisory, Inc. and Charles Schwab & Co., Inc. Under the terms of the settlement, Schwab will pay $186.5 million to resolve the case, which will be filed in a Fair Fund account for distribution to relevant investors. Schwab will also engage an independent compliance consultant to review CS&Co’s current supervisory, compliance and other policies and procedures. and CSIA regarding CS&Co’s disclosures, advertising and marketing communications. and CSIA related to SIP with customers or potential customers.

As previously disclosed in a Form 8-K filed dated July 1, 2021Schwab’s financial results for the second quarter of 2021 included a liability and related non-deductible charge of $200 million in connection with the regulations.

About Charles Schwab

The Charles Schwab Company (NYSE: SCHW) is a leading provider of financial services, with 33.8 million active brokerage accounts, 2.3 million corporate pension plan participants, 1.7 million bank accounts and about $7.28 billion in customer assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custodial and financial advisory services to individual investors and investment advisors. independent investment. Its brokerage-trader subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc.and TD Ameritrade Clearing, Inc.(members SIPC, and their affiliates offer a full range of investment services and products, including a wide selection of mutual funds; financial planning and investment advice; pension plan and equity compensation plan services; referrals to paid independent investment advisers; and custody, operations and trading support for fee-based independent investment advisors through Schwab Advisor Services. Its main banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products.

TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Company. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

More information is available at


We encourage you to read the Schwab Intelligent Portfolios Solutions™ disclosure brochures for important information, pricing and disclosures. Before signing up, it is important that you understand all costs, including the role of cash and how Schwab derives income from the cash allocation of your portfolio, which results in a decline in the overall performance of the portfolio under certain market conditions, such as when other riskier assets outperform cash and how Schwab and its subsidiaries work together.

Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ are available through Charles Schwab & Cie Inc. (“Schwab”), a dual-listed investment advisor and broker-dealer. Portfolio management services are provided by Charles Schwab Investment Advisory, Inc. (“AMSC”). Schwab and CSIA are subsidiaries of The Charles Schwab Company.

Cash allocation in Schwab Intelligent Portfolios Solutions™ will be achieved through enrollment in the Schwab Intelligent Portfolios Sweep Program (Sweep Program), a program sponsored by Charles Schwab & Co, Inc. By enrolling in Schwab Intelligent Portfolios Solutions, clients consent to free credit balances in their Schwab Intelligent Portfolios Solutions brokerage accounts being transferred to FDIC– deposit accounts insured at Charles Schwab Bank through the scanning program. Funds deposited at Charles Schwab Bank are insured, in total, up to $250,000 per depositor, for each category of account holder, by the Federal Deposit Insurance Corporation (FDIC). Charles Schwab Bank is affiliated with Charles Schwab & Co., Inc. and Charles Schwab Investment Advisory, Inc. Diversification does not guarantee a profit or protect against losses in a declining market.

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Alison Wertheim
Charles Schwab

[email protected]

Jeff Edwards
Charles Schwab

[email protected]

Source: The Charles Schwab Company


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