To help the companies it serves tackle their ongoing compliance challenges, Charles Schwab on Monday launched Compliance Solutions, which combines the capabilities of Schwab Designated Brokerage Services (DBS) and Compliance 11, Inc.
Schwab says its Compliance Solutions program fulfills an initiative it launched last November after acquiring Compliance 11 and pairing it with Schwab Designated Brokerage Services. Compliance 11 provides regulatory compliance software and DBS provides trade monitoring services. Since the acquisition, Schwab says it has focused on creating a unique suite of tools and resources for clients.
“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, in a statement. “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.”
Scott Rister, vice president of Compliance Solutions, said Schwab is also 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,” Rister said in the same statement. “The business risk for our clients is real, and our solutions are designed to tackle it head on.”
Rister added that one of the chief concerns faced by regulated firms is improper securities trading, and the number and types of firms that are required to monitor employee securities trading is growing rapidly. Employees, he said, may be prohibited from trading a specific security for a variety of reasons, such as the firm possessing material non-public information.