Charles Schwab Corporation
Approved Evidence
Added to Rotten Company: 8/26/2026
Conduct/Event period: March 2015–November 2018
Ongoing: No
Resolution status: Resolved
Resolution date: June 13, 2022
Schwab paid $187 million after SEC found robo-adviser clients were misled about hidden cash drag
Summary
SEC charged three Charles Schwab investment-adviser subsidiaries with misleading robo-adviser clients by failing to disclose that required cash allocations could reduce client returns while generating revenue for Schwab. The subsidiaries agreed to pay approximately $52 million in disgorgement and interest plus a $135 million civil penalty. Source: https://www.sec.gov/newsroom/press-releases/2022-104
Evidence Weight
100.00
Severity:
Recency Weight: 99.99983084960996
File Weight: 1