As companies respond to increased regulatory pressure, Charles Schwab
today reported the number of corporate clients using its Compliance
Solutions services jumped approximately 62% over the last two years.
Total assets monitored rose 58% to approximately $60 billion. Compliance
Solutions helps financial services firms and industry providers meet
increasingly complex employee compliance and regulatory requirements.
“Compliance officers’ jobs have gotten much tougher in the past few
years as they are required to manage a number of different risks and
costs ranging from employee actions to threats to the integrity of their
firm’s data,” said Scott Rister, vice president, Compliance Solutions.
“The number of firms that are required to monitor employee securities
trading is growing rapidly. When managed effectively, a compliance
program can be an opportunity to position a company favorably in the
marketplace, build trust with clients, and enhance value and market
share for a firm.”
Compliance Solutions empowers firms with a comprehensive suite of
automated employee monitoring solutions, designated brokerage services,
and a wide range of financial products and services for employees.
Formed in 2012, Compliance Solutions is comprised of Schwab Designated
Brokerage Services and Schwab Compliance Technologies™ (formerly
Compliance11).
Schwab Designated Brokerage Services has provided employee trade
monitoring services to employers in regulated industries for more than
20 years and now serves 1,500 corporate clients covering 250,000
employee accounts. Schwab Compliance Technologies provides advanced,
web-based compliance tools and technology to more than 685 corporate
clients and 97,000 licensed system users.
Schwab Trade Check™
“A growing concern for our clients is improper securities trading as
employees may be prohibited from trading a specific security for a
variety of reasons, such as the firm possessing material non-public
information,” Rister continued. “The majority of the time, employees are
unaware that they are making a prohibited trade, and to avoid this
honest mistake we have created Schwab Trade Check™ to proactively
validate these trades.”
Schwab Trade Check automates the pre-clearance process and helps protect
against potential trading violations by automatically matching employee
trade attempts on the Schwab brokerage platform against a pre-set list
of rules and within seconds approves the transaction or denies it. When
a prohibited trade is attempted, the system alerts compliance
administrators so they can review the issue. Schwab Trade Check is
unique in the industry and prevents employees from executing a
prohibited trade in error, notifying them that the trade was denied due
to their company’s rules. With other systems available today, even if a
prohibited trade is detected, it is after the fact, which creates a poor
experience for the employee and the employer alike, often requiring the
trade to be canceled and unwound.
Comprehensive Employee Monitoring Tools, Technology and Resources
Compliance Solutions offers additional tools and technology to help
transform a company’s overall employee monitoring program from complex
and time-consuming to straightforward and efficient. Comprehensive
offerings include:
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Proactive enforcement of company trading policies
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Distribution and tracking of employee affirmations and disclosures
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Logging and reporting of gifts and entertainment
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A sophisticated, cloud-based software application, so no hardware is
required
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A scalable, flexible platform that can adapt and grow with an
organization and address changing regulatory requirements
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Easier maintenance of compliance policies and procedures
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Dedicated service and support teams that can customize solutions for
each client firm
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Bundled pricing for cost savings
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Employee access to a full suite of brokerage products and services
from Charles Schwab & Co., Inc.
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Employee access to a range of banking products and services from
Charles Schwab Bank
“Compliance and employee monitoring is critical to protecting a firm’s
reputation and its people. Done right, it helps firms make ethical best
practices and culture a foundation for their business rather than
viewing compliance as a check-the-box requirement. Each year companies
are being subjected to more and more regulation and it is crucial that
organizations evaluate their processes and look for ways to streamline
their efforts and protect their brand,” Rister said.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help
individuals create a better tomorrow. We have a history of challenging
the status quo in our industry, innovating in ways that benefit
investors and the advisors and employers who serve them, and championing
our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com.
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Disclosures
Compliance Solutions is comprised of Schwab Designated Brokerage
Services (DBS), a division of Charles Schwab & Co., Inc. ("Schwab"); and
Schwab Compliance Technologies, Inc. ("SchwabCT"), formerly
Compliance11, Inc. Schwab Designated Brokerage Services provides
brokerage solutions for corporate clients who monitor their employees’
securities activity. SchwabCT provides technology solutions for
corporate clients to help facilitate their compliance technology program
implementation. Schwab Compliance Technologies, Inc. and Charles Schwab
& Co., Inc. are separate but affiliated entities and each is a
subsidiary of The Charles Schwab Corporation.
Through its operating subsidiaries, The Charles Schwab Corporation
(NYSE: SCHW) provides a full range of securities brokerage, banking,
money management and financial advisory services to individual investors
and independent investment advisors. Its broker-dealer subsidiary,
Charles Schwab & Co., Inc. (member SIPC,
www.sipc.org),
and affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation
plan services; compliance and trade monitoring solutions; referrals to
independent fee-based investment advisors; and custodial, operational
and trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles Schwab
Bank (member FDIC and an Equal Housing Lender), provides banking and
lending services and products. More information is available at www.schwab.com
and www.aboutschwab.com.
(0315-1840)
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Copyright Business Wire 2015