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Charles Schwab Weaker After Disclosing SEC Probe

Published 07/02/2021, 08:12 AM
Updated 07/02/2021, 08:13 AM
© Reuters.

By Dhirendra Tripathi

Investing.com – Charles Schwab (NYSE:SCHW) stock was down a fraction during Friday’s premarket trading after the brokerage said its digital advisory solution, Schwab Intelligent Portfolios, was being investigated by the U.S. Securities and Exchanges Commission.

The company warned its second-quarter financial results would include a liability and a charge of $200 million, but the final liability could differ, depending on the outcome of the probe.

"The company intends to continue cooperating with the SEC with the goal of resolving this matter," Schwab said.

Schwab's robo adviser or automated investment product distributes cash among exchange-traded funds based on formulae derived from client questionnaires.

The brokerage said it served almost $64 billion in client assets as of March 31, up 51% on a year-over-year basis.

 

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