Schwab paid $187 million after SEC found robo-adviser clients were misled about hidden cash drag
Company: Charles Schwab Corporation
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