Charles Schwab (SCHW) recently launched a Compliance Solutions group. This move represents a fulfillment of an initiative that was started in November 2011 when Schwab acquired Compliance11, Inc. and paired it with Schwab Designated Broker Services (DBS). Compliance 11 provides regulatory compliance software and DBS provides trade monitoring services. Since the acquisition, this combination has focused on creating a unique suite of tools and resources for clients. The unveiling of Schwab’s Compliance Solutions is another major step for the partnership.
Why did Charles Schwab decide to launch this group? Trish Cox, senior vice president for Corporate Brokerage Services at Schwab, said “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 at Schwab, said that Schwab is seeing growing concern among its client base of employers regarding compliance issues. He said, “The business risk for our clients is real, and our solutions are designed to tackle it head on.”
Schwab’s proactive trade blocking is an industry first, and that will be a major focus of this Compliance Solutions group. Proactive trade blocking prevents employees from executing a prohibited trade in error, notifying them that the prohibited trade was blocked according to their company’s rules. This should help avoid mistakes that are quite common in today’s marketplace.
Moving forward with compliance services should be a major plus for the entire industry. For more information on Schwab’s Compliance Solutions click here to view the full press release.