Topline
Charles Schwab will pay nearly $200 million after a Securities and Exchange Commission probe found its “robo-advisory” services advised clients to invest sub-optimally and didn’t adequately warn clients of hidden fees, the SEC ປະກາດ ວັນຈັນ.
Charles Schwab will pay nearly $200 million following an SEC probe into its robo-advisory services.
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ຂໍ້ເທັດຈິງສໍາຄັນ
ກ ກ່າວວ່າ three Schwab investment subsidiaries, using the company’s Schwab Intelligent Portfolios robo-advisor, allocated client assets to cash investments in a way the company knew “would cause clients to make less money even while taking on the same amount of risk” between March 2015 and November 2018.
Schwab in turn took the extra cash and made extra profit by loaning it through its affiliate bank, the SEC alleged.
Schwab “neither admits nor denies the allegations,” the company said in a ຄໍາຖະແຫຼງທີ່ Monday defending its robo-advisor products.
The company will pay $186.5 million—$135 million civil fine and $52 million in disgorgement and prejudgment interest payments—to harmed clients.
ຄຳ ເວົ້າທີ່ ສຳ ຄັນ
“Schwab’s conduct was egregious and today’s action sends a clear message to advisers that they need to be transparent with clients about hidden fees and how such fees affect clients’ returns,” Gurbir Grewal, director of the SEC’s Division of Enforcement, said in a ຄໍາຖະແຫຼງທີ່.
ກະທັດຮັດ
Shares of Schwab fell 2.7% in Monday trading, closely following a broader market selloff and likely unaffected by the payout, as the firm ລາຍງານ a nearly $200 million charge in the second quarter of 2021 related to the SEC investigation.
ໝາຍ ເລກໃຫຍ່
33.6 million. That’s how many active brokerage accounts Charles Schwab managed as of the end of the 2022 first quarter, according to the company’s most recent SEC ເອກະສານ in April, with a total of $7.86 trillion in client assets.
ອ່ານເພີ່ມເຕີມ
Schwab’s $200 Million Charge Puts Scrutiny on Robo-Advising (Bloomberg)
Source: https://www.forbes.com/sites/dereksaul/2022/06/13/schwab-will-pay-187-million-to-settle-claims-it-misled-clients/