Charles Schwab Corp.
mentioned Friday it has been responding to an investigation by the Securities and Alternate Fee arising from a compliance examination. The corporate mentioned 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 workers within the investigation and is evaluating its choices,” it mentioned within the submitting. However the firm is anticipating to e book a cost of $200 million within the second quarter that it mentioned might be a legal responsibility and associated non-deductible cost. The corporate is planning to proceed cooperating with the regulator with the objective of resolving the matter. The Schwab Clever Portfolios division served nearly $64 billion in consumer belongings as of March 31, up 51% from the year-earlier interval, mentioned the submitting. Shares had been down 0.4% premarket, however have gained 49% within the yr up to now, whereas the S&P 500
has gained 15%.