Charles Schwab discloses SEC investigation of digital adivisory business, expects to book $200 million charge in Q2

Charles Schwab Corp.
SCHW,
+1.04%
said Friday it has been responding to an investigation by the Securities and Exchange Commission arising from a compliance examination. The company said in a regulatory filing the probe largely relates to the Schwab Intelligent Portfolios digital advisory business, without offering further details. “The company has been cooperating with SEC staff in the investigation and is evaluating its options,” it said in the filing. But the company is expecting to book a charge of $200 million in the second quarter that it said will be a liability and related non-deductible charge. The company is planning to continue cooperating with the regulator with the goal of resolving the matter. The Schwab Intelligent Portfolios division served almost $64 billion in client assets as of March 31, up 51% from the year-earlier period, said the filing. Shares were down 0.4% premarket, but have gained 49% in…

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