ToplineCharles Schwab will pay nearly $200 million after a Securities and Exchange Commission probe found its “robo-advisory” services advised clients to invest sub-optimally and didn’t adequately warn clients of hidden fees, the SEC announced Monday. Charles Schwab will pay nearly $200 million following an SEC probe into its robo-advisory services. Schwab in turn took the extra cash and made extra profit by loaning it through its affiliate bank, the SEC alleged. The company will pay $186.5 million—$135 million civil fine and $52 million in disgorgement and prejudgment interest payments—to harmed clients. Further ReadingSchwab’s $200 Million Charge Puts Scrutiny on Robo-Advising (Bloomberg)

Source: Forbes June 14, 2022 12:41 UTC