Defendant Name:
Schwab Wealth Investment Advisory, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Charles Schwab Corporation
SIC Code:
6211
CUSIP:
80851310
Document Reference:
34-95087
Document Details
Legal Case Name
In the Matter of Charles Schwab & Co., Inc., Charles Schwab Investment Advisory, Inc., and Schwab Wealth Investment Advisory, Inc.
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 and Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date
13-Jun-2022
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On June 13, 2022, the SEC instituted settled administrative and cease-and-desist proceedings against Charles Schwab & Co., Inc., Charles Schwab Investment Advisory, Inc. and Schwab Wealth Investment Advisory, Inc., stating: "From March 2015 through November 2018, certain investment adviser subsidiaries of The Charles Schwab Corporation made false and misleading statements in their Form ADV filings about the cash component of their robo-adviser service, Schwab Intelligent Portfolios (“SIP”)."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Various undertakings: cooperation with the SEC; notice to investors whose assets were invested in SIP; certification of compliance with the undertakings
Fair Funds
Monetary Penalties:
Disgorgement
Individual:
Shared:
$45,907,541.00
Shared with: Charles Schwab & Co., Charles Schwab Investment Advisory, Inc.
Civil Penalty
Individual:
Shared:
$135,000,000.00
Shared with: Charles Schwab & Co., Charles Schwab Investment Advisory, Inc.
Pre-Judgment Interest
Individual:
Shared:
$5,629,320.00
Shared with: Charles Schwab & Co., Charles Schwab Investment Advisory, Inc.
Total Penalty
Individual:
Shared:
$186,536,861.00
Shared with: Charles Schwab & Co., Charles Schwab Investment Advisory, Inc.
Other Defendants in Action:
