Charles Schwab is facing a $200 million charge relating to a Securities and Exchange Commission (SEC) investigation into the firm's robo advisor.
In a regulatory filing, the company says it has been responding to an SEC investigation that "largely concerns historic disclosures related to the Schwab Intelligent Portfolios (SIP) digital advisory solution".
This is set to result in a $200 million charge in the second quarter, although the ultimate liability may differ.
The filing does not provide details on the investigation into the SIP product, which automatically distributes client cash among ETFs based on questionnaire feedback and is part of a digital advisory lineup which serves almost $64 billion in client assets.