Civil Plaintiff

Charles Schwab & Co. Agrees to a $187 Million Settlement With the SEC

Charles Schwab & Co. is paying the Securities and Exchange Commission (SEC) $187 million — if not officially in penance– for alleged transgressions that put its own interests ahead of its robo clients.

But the trade-off paid off in the sense that Schwab began the practice in 2015 to catch Betterment and Wealthfront and keep pace with Vanguard ‘s discount RIA. Today, it is, by far, the largest retail investing robo-advisor.

It all happened amid Schwab’s effort to field a robo-advisor with make-a-splash, zero-fee pricing. At the same time, it made up revenues with careful financial engineering on the back end, according to SEC filings.  

Read the source article at RIABiz

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