{"id":5842,"date":"2015-09-05T00:00:00","date_gmt":"2015-09-05T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/09\/finra_fines_charles_schwab_2m"},"modified":"2022-05-06T16:00:13","modified_gmt":"2022-05-06T21:00:13","slug":"finra-fines-charles-schwab-2m","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-fines-charles-schwab-2m\/","title":{"rendered":"FINRA Fines Charles Schwab $2M for Supervisory Failures, Capital Deficiencies"},"content":{"rendered":"

The Financial Industry Regulatory Authority is fining Charles Schwab & Co. (SCHW) $2 million. The self-regulatory organization said that between 5\/15\/14 and 7\/1\/14, Schwab was capital deficient by up to $775M because of cash inflows that went beyond what it could invest with existing facilities on three occasions. Because of this, said FINRA, the firm moved $1 billion to its parent company for overnight investment. Under a revolving loan agreement, Schwab\u2019s Treasury group approved the funds as an unsecured loan.<\/p>\n

The SRO claims that Schwab lacked the procedures that would have mandated that its Treasury group consult with the company\u2019s regulatory reporting group. It also contends that the firm\u2019s supervisory systems were not designed in a manner reasonable enough to stop the Treasury group from going into unsecured transfers with affiliates that could lead to a net capital deficiency.<\/p>\n

Schwab is not denying or admitting to the FINRA alelagtions. A firm representative did issue a statement expressing regret over the failure to note the overnight cash transfers. <\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Financial Industry Regulatory Authority is fining Charles Schwab & Co. (SCHW) $2 million. The self-regulatory organization said that between 5\/15\/14 and 7\/1\/14, Schwab was capital deficient by up to $775M because of cash inflows that went beyond what it could invest with existing facilities on three occasions. Because of this, said FINRA, the firm […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3739],"tags":[3259],"class_list":["post-5842","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-finra","tag-charles-schwab"],"yoast_head":"\nFINRA Fines Charles Schwab $2M for Supervisory Failures, Capital Deficiencies — Investor Lawyers Blog — September 5, 2015<\/title>\n<meta name=\"description\" content=\"The Financial Industry Regulatory Authority is fining Charles Schwab & Co. (SCHW) $2 million. 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