Charles Schwab Corp. said it settled a lawsuit with the Securities and Exchange Commission over claims the company failed to file reports on suspicious transactions by independent investment advisors that Schwab terminated from its platform.
The lawsuit, filed Monday in San Francisco federal court, claims Schwab failed to file suspicious activity reports, or SARs, in 2012 and 2013 on the advisors, who weren’t employees of Schwab or affiliated with the financial-services firm.
Mayura Hooper, a spokeswoman for San Francisco-based Schwab, said the company settled with the SEC without providing terms.
“We appreciate the SEC completing its review of this matter and look forward to putting it behind us,” Hooper said in an emailed statement.
Chris Carofine, a spokesman for the SEC, couldn’t immediately comment.