Practice - Technology
Schwab Launches Compliance Tech Tool
by: Irene Park
Tuesday, November 20, 2012
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Charles Schwab has announced yet another new product for companies to improve their business operations.

The San Francisco firm launched its latest compliance service to help mutual fund firms meet new employee compliance and regulatory requirements, which demand more transparency and disclosure from fund managers and industry providers.

Compliance Solutions is the product of the pairing between Schwab Designed Brokerage Services(DBS), which provides trade-monitoring services, and Compliance11, a regulatory compliance software provider that Schwab acquired in November 2011.

One of the key features offered by Compliance Solutions is proactive trade blocking, which prevents employees from executing improper securities trades such as those transacted based on material non-public information. The system blocks the trade before it can be fulfilled, as opposed to other systems, which only detect prohibited trades after the fact.

Other tools and resources provided by Compliance Solutions include cloud-based software application, distribution and tracking of employee affirmations and disclosures, and logging and reporting of gifts and entertainment costs, as well as employee access to Schwab's brokerage and banking products and services.

Trish Cox, senior vice president for corporate brokerage services, said compliance poses an opportunity for firms to build clients' trust in them and improve their brand perception and value. “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,” Cox said. “Consumers value open and transparent business practices, and positive perception in this area may benefit a company’s bottom line."

As of Oct. 31, The Charles Schwab Corporation handles 8.7 million client brokerage accounts, 1.6 million corporate retirement plan participants and 851,000 banking accounts. It manages $1.9 trillion in client assets.

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