Charles Schwab Corp.
stated Friday it has been responding to an investigation by the Securities and Trade Fee arising from a compliance examination. The corporate stated in a regulatory submitting the probe largely pertains to the Schwab Clever Portfolios digital advisory enterprise, with out providing additional particulars. “The corporate has been cooperating with SEC employees within the investigation and is evaluating its choices,” it stated within the submitting. However the firm is anticipating to e-book a cost of $200 million within the second quarter that it stated might be a legal responsibility and associated non-deductible cost. The corporate is planning to proceed cooperating with the regulator with the purpose of resolving the matter. The Schwab Clever Portfolios division served nearly $64 billion in shopper belongings as of March 31, up 51% from the year-earlier interval, stated the submitting. Shares have been down 0.4% premarket, however have gained 49% within the yr so far, whereas the S&P 500
has gained 15%.