-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IGKaROgVDbrYN21KsUCNxnLXIuS6FFuDhMdG5MG8ly/dL120HbTPUTcf1Mai5dex qa0dUzikzm65stIY0Fimnw== 0000751448-07-000018.txt : 20070716 0000751448-07-000018.hdr.sgml : 20070716 20070716130021 ACCESSION NUMBER: 0000751448-07-000018 CONFORMED SUBMISSION TYPE: TA-1/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20070713 DATE AS OF CHANGE: 20070716 EFFECTIVENESS DATE: 20070723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHARLES SCHWAB & CO INC /TA CENTRAL INDEX KEY: 0000751448 IRS NUMBER: 941737782 STATE OF INCORPORATION: CA FILING VALUES: FORM TYPE: TA-1/A SEC ACT: 1934 Act SEC FILE NUMBER: 084-01256 FILM NUMBER: 07980875 BUSINESS ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 4156277000 MAIL ADDRESS: STREET 1: REGISTRATION DEPT SF120KNY-12-345 STREET 2: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 TA-1/A 1 primary_doc.xml X0302 TA-1/A LIVE 1.0.0 0000751448 084-01256 SEC Charles Schwab & Co., Inc. N/A 411233 101 Montgomery Street San Francisco CA CALIFORNIA 94104 false 415-636-7000 false false false false Not Applicable false false false false false false false true Charles Schwab & Co., Inc. 3-11648 2003-09-03 U.S. SECURITIES EXCHANGE COMMISSION SCHWAB ENGAGED IN A PRACTICE THAT ENABLED CERTAIN MUTUAL FUND SHAREHOLDERS TO PLACE MUTUAL FUND ORDERS AFTER THE TIME THE FUNDS CALCULATED THEIR NET ASSET VALUES ("NAV") FOR THAT DAY THE SEC IMPOSED ON SCHWAB THE FOLLOWING SANCTIONS: (1) THAT SCHWAB CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF RULE 22C-1(A) UNDER THE INVESTMENT COMPANY ACT; (2) CENSURE OF SCHWAB; AND (3) Fine OF $350,000 Charles Schwab & Co., Inc. PUBLIC ADMINISTRATIVE PROCEEDINGS 1980-10-01 SECURITIES AND EXCHANGE COMMISSION ADMINISTRATIVE LAW JUDGE OF THE SECURITIES AND EXCHANGE COMMISSION, IT WAS FOUND THAT APPLICANT HAD FAILED TO ADEQUATELY SUPERVISE THE REGISTERED REPRESENTATIVE IN ITS NEWPORT BEACH, CALIFORNIA BRANCH OFFICE APPLICANT DISCOVERED THAT ONE OF ITS EMPLOYEES WAS SOLICITING FUNDS FROM VARIOUS NON-CUSTOMERS AND CONVERTING THOSE FUNDS TO HIS OWN USE. WHEN THE EMPLOYEE'S ACTIONS WERE DISCOVERED, HE WAS IMMEDIATELY TERMINATED; ALL APPROPRIATE AUTHORITIES NOTIFIED. false true CYBERTRADER, INC. CO-01-6414-S 2001-05-01 STATE OF CONNECTICUT, DEPARTMENT OF BANKING CYBERTRADER VOLUNTARILY REPORTED THAT IT MAY HAVE TRANSACTED BUSINESS AS A BROKER DEALER PRIOR TO ITS NOVEMBER 1, 1999 REGISTRATION IN CONNECTICUT CYBERTRADER, INC. PAID $7500.00 AND AGREED TO CERTAIN REMEDIAL ACTIONS false true Charles Schwab & Co., Inc. CO-99-5303-S 1999-05-13 STATE OF CONNECTICUT DEPT. OF BANKING, SECURITIES AND BUS. DIV ALLEGES THAT SCHWAB'S WRITTEN SUPERVISORY PROCEDURES DID NOT ADEQUATELY DESIGNATE SUPERVISORY RESPONSIBILITY OR DESCRIBE ADEQUATELY THE SUPERVISORY STEPS TO BE TAKEN BY ITS EMPLOYEES IN CONNECTION WITH THE WITHDRAWAL OF FUNDS FROM CERTAIN CUSTOMER BROKERAGE ACCOUNTS FOR THE PURPOSE OF PAYING INVESTMENT ADVISORY FEES TO AN INDEPENDENT INVESTMENT ADVISOR IN VIOLATION OF SECTION 36B-15(A)(2)(K) OF THE CONNECTICUT UNIFORM SECURITIES ACT $100,000 FINE LEVIED AGAINST SCHWAB; FINE PAID ON MAY 13, 1999. SCHWAB TO PREPARE ITS OWN REVIEW AND REPORT OF ITS INTERNAL SUPERVISORY THIRD PARTY INVESTMENT MANAGEMENT FEE PAYMENT PRACTICES AND TO SUBMIT SUCH REPORT TO THE DIVISION DIRECTOR. CYBERTRADER, INC. CO-01-6414-S 2001-05-01 STATE OF CONNECTICUT, DEPARTMENT OF BANKING CYBERTRADER VOLUNTARILY REPORTED THAT IT MAY HAVE TRANSACTED BUSINESS AS A BROKER DEALER PRIOR TO ITS NOVEMBER 1, 1999 REGISTRATION IN CONNECTICUT THE FIRM PAID A FINE OF $7500.00 false false true Charles Schwab & Co., Inc X-2044 (L) - Stipulation and Consent 1985-09-17 WISCONSIN TRANSACTION OF BUSINESS THROUGH AT LEAST 38 AGENTS NOT LICENSED IN WISCONSIN ON 9/17/85 THE WISCONSIN SECURITIES COMMISSION ISSUED AN ORDER RESTRICTING CHARLES SCHWAB & CO., INC. FOR 10 DAYS FROM OPENING NEW WISCONSIN ACCOUNTS. false false true Charles Schwab & CO., Inc. 05-0042 - Decision & Order of Offer of Settlement 2005-09-19 CHICAGO BOARD OPTIONS EXCHANGE ALLEGED VIOLATION OF EXCHANGE RULE 9.21(A)(I) AND INTERPRETATIONS AND POLICIES .01 AND .02 IN THAT SCHWAB DISSEMINATED COMMUNICATIONS THAT WERE IN CONTRAVENTION OF THE REQUIREMENTS OF EXCHANGE RULE 9.21(A)(I) AND INTERPRETATIONS AND POLICIES .01 AND .02; VIOLATION OF EXCHANGE RULES 4.2, 9.8 AND 9.21(C) EDUCATIONAL UNDERTAKING FOR APPROPRIATE SCHWAB EMPLOYEES TO REVIEW WITH EXCHANGE STAFF THE REQUIREMENTS OF EXCHANGE RULE 9.21. Charles Schwab & CO., Inc. HPD #05-156 2005-09-28 NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT SUBMISSIONS OF INACCURATE ELECTRONIC BLUE SHEETS IN VIOLATION OF EXCHANGE RULES 410A & 401 AND THE FAILURE TO PROPERLY SUPERVISE THE PREPARATION OF ITS BLUE SHEET SUBMISSIONS IN VIOLATION OF EXCHANGE RULE 342. CENSURE, FINE AND THE FIRM IS TO CONDUCT A VALIDATION OF ALL REQUIRED BLUE SHEET DATA ELEMENTS AND NOTIFY THE NYSE IN WRITING THAT THAT FIRM HAS COMPLETED THE VALIDATION Charles Schwab & Co., INc. Stipulation and Consent - HPD#05-110 2005-08-05 NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT THE FIRM, WITHOUT ADMITTING OR DENYING GUILT, VIOLATED EXCHANGE RULES 342(A) AND (B) IN THAT THE FIRM FAILED TO ESTABLISH AND MAINTAIN APPROPRIATE PROCEDURES FOR SUPERVISION AND CONTROL THE FIRM HAS CONSENTED TO A CENSURE, A FINE OF $1 MILLION AND AN UNDERTAKING TO HIRE AN OUTSIDE CONSULTANT TO REVIEW ITS POLICIES AND PROCEDURES WITH RESPECT TO THE FOREGOING. Charles Schwab & Co., Inc. AWC CLG050002 2004-12-16 NASD DURING 2002 AND 2003, SCHWAB FAILED TO CORRECT AND REPAIR 9,637 OATS REPORTS THAT WERE REJECTED BY THE OATS SYSTEMS IN VIOLATION OF NASD MARKETPLACE RULE 6955(A) AND CONDUCT RULE 2110. REVISE THE FIRM'S WRITTEN SUPERVISORY PROCEDURES WITH RESPECT TO OATS AND MUNICIPAL TRADE REPORTING Charles Schwab & Co., Inc. 3-11648 2003-09-03 U.S. SECURITIES EXCHANGE COMMISSION THE SEC FOUND THAT FROM AT LEAST JANUARY 2001 THROUGH OCTOBER 2003, SCHWAB ENGAGED IN A PRACTICE THAT ENABLED CERTAIN MUTUAL FUND SHAREHOLDERS TO PLACE MUTUAL FUND ORDERS AFTER THE TIME THE FUNDS CALCULATED THEIR NET ASSET VALUES ("NAV") FOR THAT DAY (1) THAT SCHWAB CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF RULE 22C-1(A) UNDER THE INVESTMENT COMPANY ACT; (2) CENSURE OF SCHWAB; AND (3) IMPOSITION A CIVIL MONEY PENALTY IN THE AMOUNT OF $350,000. Charles Schwab & Co., Inc. C05040042 2004-06-28 NASD APPLICANT VIOLATED MSRB RULES G-17, G-30(A) WHEN IT RELIED SOLELY ON THE BIDS PROVIDED BY A BROKER'S BROKER TO DETERMINE THE FAIR MARKET VALUE IN THE LIQUIDATION OF SIX MUNICIPAL SECURITY POSITIONS FOR CUSTOMERS FINE OF $30,000 AND RESTITUTION OF $$30,869.25, PLUS INTEREST TO THE CUSTOMERS Charles Schwab & Co., Inc. HPD#: 04-114 2004-06-14 NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT VIOLATED EXCHANGE RULE 346(F) BY EMPLOYING PERSONS WITH STATUTORY DISQUALIFICATIONS; VIOLATED EXCHANGE RULE 351(A)(5) BY FAILING TO PROMPTLY REPORT CRIMINAL MATTERS CONCERNING EMPLOYEES TO THE EXCHANGE CONSENT TO CENSURE, $250,000 FINE, AND REQUIREMENT TO REFORM PROCEDURES CONCERNING HIRING OF INDIVIDUALS SUBJECT TO STATUTORY DISQUALIFICATION Charles Schwab & Co., Inc 02-28 2003-03-26 AMERICAN STOCK EXCHANGE VIOLATED EXCHANGE RULE 208 IN THAT THE FIRM ACCEPTED MULTIPLE ODD-LOT ORDERS FOR EXECUTION THROUGH ITS LAYOFF SYSTEM, WHEN SUCH ORDERS SHOULD HAVE BEEN CONSOLIDATED INTO ROUND LOTS SCHWAB WAS CENSURED AND FINED $20,000.00. THE FINE WAS PAID BY SCHWAB ON JUNE 18, 2003 Charles Schwab & Co., INc. CMS030003 AWC 2002-12-13 NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC VIOLATIONS OF SEC RULE 17A-3 AND NASD CONDUCT RULE 3110 CHARLES SCHWAB & CO INC PAID A FINE OF $5000. Charles Schwab & Co., INc. CMS010149 AWC 2001-05-23 NASD REGULATION, INC THE ALLEGEDLY VIOLATED NASD MARKETPLACE RULE 4632(A) AND NASD CONDUCT RULE 2110 CHARLES SCHWAB & CO., INC. PAID A FINE OF $2500. Charles Schwab & Co. Inc. HPD# 00-135 2000-07-20 NEW YORK STOCK EXCHANGE, INC. THE FIRM VIOLATED: (1)EXCHANGE RULE 402(A) AND REGULATION 240.15C3-3(E), PROMULGATED PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934, IN THAT IT: (A) FAILED TO MAINTAIN ITS SPECIAL RESERVE BANK ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS AT THE LEVELS REQUIRED BY THE REGULATION PENALTY IMPOSED OF A CENSURE, $300,000 FINE AND AN UNDERTAKING. Charles Schwab & Co., Inc. #501172 1999-12-20 NEW YORK STOCK EXCHANGE, INC. VIOLATED EXCHANGE RULE 342 BY: A)FAILING TO ESTABLISH ADEQUATE PROCEDURES TO SUPERVISE THE OPENING OF AND TRADING IN NEW CUSTOMER ACCOUNTS OPENED BY PHONE PRIOR TO TIMELY RECEIPT OF SIGNED CUSTOMER DOCUMENTS THE STIPULATION, APPLICANT AGREED TO A CENSURE AND A FINE OF $250,000. Charles Schwab & Co., Inc. CAF900032 1999-12-16 NASD REGULATION, INC APPLICANT VIOLATED MSRB RULES G-12 AND G14 DURING THE FIRST HALF OF 1999 BY FAILING TO PROVIDE ACCURATE AND TIMELY INFORMATION REGARDING MUNICIPAL SECURITIES TRADES TO THE NSCC. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, APPLICANT CONSENTED TO A $1,000 FINE. Charles Schwab & Co., Inc. Regulatory Action 1980-06-01 PHILADELPHIA STOCK EXCHANGE, INC. BOOKS AND RECORDS VIOLATIONS AND CAPITAL COMPUTATION VIOLATIONS IN THE FIRST CALENDAR QUARTER OF 1980. $30,000 FINE LEVIED AGAINST SCHWAB. Charles R. Schwab Regulatory Action 1975-06-01 PHILADELPHIA STOCK EXCHANGE, INC. CHARLES R. SCHWAB WAS CENSURED BY THE PHILADELPHIA STOCK EXCHANGE CHARLES R. SCHWAB WAS CENSURED BY THE PHILADELPHIA STOCK EXCHANGE Charles Schwab & Co., Inc. C01970023 1996-11-01 NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. DURING THE PERIOD FROM JULY THROUGH SEPTEMBER 1996, IN CONJUNCTION WITH SALES OF NEW ISSUES OF MUNICIPAL SECURITIES, SCHWAB FAILED TO PROVIDE OFFICIAL STATEMENTS TO CERTAIN CUSTOMERS ON A TIMELY BASIS IN VIOLATION OF MSRB RULE G-32 $4500 FINE LEVIED AGAINST SCHWAB Charles Schwab & Co., Inc. Regulatory Action 1974-11-24 NASDAQ NASDAQ COMPLAINT N-V8-83 FILED 11-22-74 ACCEPTED 12-16-74, PAID $100.00 FINAL 1-30-75 $100 FINE LEVIED AGAINST SCHWAB; FINE PAID ON DECEMBER 16, 1974. Charles Schwab & Co., INc. Regulatory Action 1974-10-31 NASDAQ NASDAQ COMPLAINT N-VS-75 FILED 10-31-74 ACCEPTED 11-15-74, PAID $25.00 FINAL 12-30-74 PAID $25.00 FINE ON 11/15/1974 Charles Schwab & Co., Inc. Acceptance, Waiver & Consent(AWC) 2007-05-15 NASD THE ALLEGATIONS WERE THAT THE FIRM FAILED TO REPORT INFORMATION ABOUT PURCHASE AND SALES TRANSACTIONS IN MUNICIPAL SECURITIES TO THE RTRS IN THE MANNER PRESCRIBED BY RULE G-14 (B)(I). CENSURE AND FINE ($10,000) false false false false true Charles Schwab & Co., Inc. Bond 1983-06-01 NOT KNOWN - NOT DISCLOSED ON SCHEDULE D OF OLD FORM BD AMOUNT RECOVERED FROM INSURANCE: 100% LESS $50,000 DEDUCTIBLE. TYPE OF LOSS WAS FIDELITY. LOCATION OF LOSS: PORTLAND, OREGON BRANCH OFFICE. NO OTHER DETAILS PROVIDED ON SCHEDULE D OF OLD FORM BD. AMOUNT RECOVERED FROM INSURANCE: 100% LESS $50,000 DEDUCTIBLE. TYPE OF LOSS WAS FIDELITY. LOCATION OF LOSS: PORTLAND, OREGON BRANCH OFFICE. NO OTHER DETAILS PROVIDED ON SCHEDULE D OF OLD FORM BD. Charles Schwab & Co., Inc. Bond 1980-10-01 NOT AVAILABLE - NAME NOT DISCLOSED ON SCHEDULE D OF OLD FORM BD AMOUNT RECOVERED FROM INSURANCE WAS 100% LESS $25,000 DEDUCTIBLE. TYPE OF LOSS: FIDELITY. LOCATION OF LOSS: NEWPORT BEACH, CALIFORNIA. NO OTHER INFORMATION PROVIDED ON SCHEDULE D OF OLD FORM BD AMOUNT RECOVERED FROM INSURANCE WAS 100% LESS $25,000 DEDUCTIBLE. TYPE OF LOSS: FIDELITY. LOCATION OF LOSS: NEWPORT BEACH, CALIFORNIA. NO OTHER INFORMATION PROVIDED ON SCHEDULE D OF OLD FORM BD false Beverly Neilson Director 415-636-3686 2007-07-13 -----END PRIVACY-ENHANCED MESSAGE-----