Charles Schwab Launches Compliance Solutions to Help Companies Better Meet Regulatory Requirements,


Charles Schwab Launches Compliance Solutions to Help Companies Better Meet Regulatory Requirements, Manage Risk and Protect Their Reputations

Offering combines capabilities of Schwab Designated Brokerage Services and Compliance11, Inc.

SAN FRANCISCO--(BUSINESS WIRE)-- Charles Schwab has launched Compliance Solutions to help financial services firms and industry providers meet increasingly complex employee compliance and regulatory requirements.

Compliance Solutions represents the fulfillment of an initiative started in November 2011 when The Charles Schwab Corporation acquired Compliance11, Inc. and paired it with Schwab Designated Brokerage Services (DBS). Compliance11 provides regulatory compliance software and DBS provides trade monitoring services. Since the acquisition, the firm has focused on creating a unique suite of tools and resources for clients.

Compliance: An Opportunity and a Challenge

"Companies understand that they need to meet regulatory requirements, but at Schwab we believe compliance can and should mean more than a check-the-box approach," said Trish Cox, senior vice president for Corporate Brokerage Services at Schwab. "Consumers value open and transparent business practices, and positive perception in this area may benefit a company's bottom line. 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."

Schwab is seeing growing concern among its own client base of employers regarding compliance issues. "Our clients are coming to us for help as they face an increasingly complex regulatory environment that often outpaces their ability to manage compliance processes," said Scott Rister, vice president of Compliance Solutions at Schwab. "The business risk for our clients is real, and our solutions are designed to tackle it head on."

Proactive Trade Blocking: An Industry First

Among the chief concerns faced by regulated firms is improper securities trading. The number and types of firms that are required to monitor employee securities trading is growing rapidly. Employees may be prohibited from trading a specific security for a variety of reasons, such as the firm possessing material non-public information.

Schwab has introduced proactive trade blocking to address this challenge. Proactive trade blocking is unique in the industry and prevents employees from executing a prohibited trade in error, notifying them that the prohibited trade was blocked according 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.

"Proactive trade blocking offers a much more streamlined approach and a much better experience, saving time and minimizing hassles. These trading errors are typically honest mistakes made by honest people. Now we offer a unique solution that helps them avoid these mistakes in the first place," said Rister.

Comprehensive Tool Set for Employers

Compliance Solutions offers additional tools and technology resources to help transform a company's overall compliance process from complex and time-consuming to simple and efficient. Comprehensive offerings include:

  • Proactive enforcement of company trading policies

  • Distribution and tracking of employee affirmations and disclosures

  • Logging and reporting of gifts and entertainment

  • A sophisticated, cloud-based software application

  • A scalable, flexible platform

  • Easier maintenance of compliance policies and procedures

  • Dedicated service and support teams

  • Bundled pricing for cost savings

  • Employee access to a full suite of brokerage products and services from Charles Schwab & Co., Inc.

  • Employee access to a range of banking products and services from Charles Schwab Bank

"Thinking bigger about compliance can benefit businesses beyond just fulfilling regulatory requirements," summarized Cox. "Building on a foundation that includes both advanced technology solutions and ethical best practices can help protect a firm's biggest assets: its people and its reputation."

About Compliance Solutions

Compliance Solutions is comprised of Schwab Designated Brokerage Services and Compliance11, Inc. Schwab Designated Brokerage Services has provided employee trade monitoring services to employers in regulated industries for more than 15 years and serves 950 corporate clients that monitor $38 billion in assets across 193,000 employee accounts. Compliance11 provides advanced, web-based compliance tools and technology to more than 400 corporate clients and 97,000 licensed system users.* More information is available at or by calling 1-877-589-4276.

About Charles Schwab

The Charles Schwab Corporation (NYS: SCHW) is a leading provider of financial services, with more than 300 offices and 8.7 million client brokerage accounts, 1.6 million corporate retirement plan participants, 851,000 banking accounts, and $1.9 trillion in client assets as of October 31, 2012. The company was ranked 'Highest in Investor Satisfaction with Self-Directed Services' in the 2012 US Self-Directed Investor Satisfaction StudySM from J.D Power and Associates. Through its operating subsidiaries, the company 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. ("Schwab") (member SIPC,, 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 its Advisor Services division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides trust and custody services, banking and lending services and products. More information is available at and (1012-6910)

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Schwab and its affiliates do not provide specific individualized legal or tax advice. Where such advice is necessary or appropriate, please consult a qualified legal or tax advisor.

Schwab Designated Brokerages Services, a segment of Charles Schwab & Co., Inc. ("Schwab"), provides technology solutions for corporate clients with regulatory requirements to monitor employee security transactions. Charles Schwab & Co., Inc. and Compliance11, Inc. are subsidiaries of The Charles Schwab Corporation.

*Schwab Designated Brokerage Services and Compliance11 data as of 9/30/12.

Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value

Charles Schwab
Mike Peterson, 330-908-4334
Intermarket Communications
Eric Hazard, 212-754-5610

KEYWORDS: United States North America California


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