The law firm Schriffrin & Barroway of Bala Cnwyd, Pa., filed an administrative complaint Friday against Charles Schwab for allowing preferred customers to engage in illegal and improper trading practices.

The complaint alleges that Schwab allowed a number of its institutional clients to rapidly trade in and out of its Excelsior family of funds to the detriment of individual shareholders, thereby breaking its fiduciary duty.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.