Civil Plaintiff
Charles Schwab Agreed to Pay a $187 Million Settlement Over SEC Charges
Charles Schwab agreed to pay $187 million to settle an SEC investigation into alleged hidden fees charged by the firm’s robo-advisor, Schwab Intelligent Portfolios, according to an agency announcement on Monday.
“Robo-advisor” is shorthand for a digital investment service that uses algorithms to judge how to allocate individuals’ money among asset classes such as stocks, bonds and cash.
From March 2015 through November 2018, Schwab didn’t disclose to clients that its robo-advisor allocated funds “in a manner that their own internal analyses showed would be less profitable for their clients under most market conditions,” the SEC claimed.
