Charles Schwab 2015 Annual Report Download - page 24

THE CHARLES SCHWAB CORPORATION
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Company also refers investors who want to utilize a specific third-party money manager to direct a portion of their
investment assets to the Schwab Managed Account program. In addition, clients who want the assistance of an independent
professional in managing their financial affairs may be referred to IAs in the Schwab Advisor Network®. These IAs provide
personalized portfolio management, financial planning, and wealth management solutions.
To meet the specific needs of clients who trade actively, Schwab and optionsXpress, Inc. both offer integrated web- and
software-based trading platforms, which incorporate intelligent order routing technology, real-time market data, options
trading, premium stock or futures research, and multi-channel access, as well as sophisticated account and trade management
features, risk management tools, decision support tools, and dedicated personal support.
For U.S. clients wishing to invest in foreign equities, the Company offers a suite of global investing capabilities, including
online access to certain foreign equity markets with the ability to trade in their local currencies. In addition, the Company
serves both foreign investors and non-English-speaking U.S. clients who wish to trade or invest in U.S. dollar-based
securities. In the U.S., the Company serves Mandarin-, Cantonese-, Spanish-, and Vietnamese-speaking clients through a
combination of its branch offices and Web-based and telephonic services.
The Investor Services segment also includes the Retirement Plan Services, Stock Plan Services, Compliance Solutions,
Mutual Fund Clearing Services and Off-Platform Sales business units.
Retirement Plan Services offers a bundled 401(k) retirement plan product that provides plan sponsors a wide array of
investment options, trustee or custodial services, and participant-level recordkeeping. Plan design features, which increase
plan efficiency and achieve employer goals, are also offered, such as automatic enrollment, automatic fund mapping at
conversion, and automatic contribution increases. The Company offers Schwab Index Advantage®, a unique 401(k) plan
utilizing low cost index mutual funds and ETFs, combined with a managed investing service to help participants reach their
retirement goals. Services also include support for Roth 401(k) accounts, profit sharing and defined benefit plans. The
Company provides a robust suite of tools to plan sponsors to manage their plans, including plan-specific reports, studies and
research, access to legislative updates and benchmarking reports that provide perspective on their plan’s features compared
with overall industry and segment-specific plans. Participants in bundled plans serviced by the Company receive targeted
education materials, have access to electronic tools and resources, may attend onsite and virtual seminars, and can receive
third-party advice delivered by Schwab. This third-party advice service is delivered online, by phone, or in person, including
recommendations based on the core investment fund choices in their retirement plan and specific recommended savings rates.
Stock Plan Services offers equity compensation plan sponsors full-service recordkeeping for stock plans, stock options,
restricted stock, performance shares and stock appreciation rights. Specialized services for executive transactions and
reporting, grant acceptance tracking, and other services are offered to employers to meet the needs of administering the
reporting and compliance aspects of an equity compensation plan.
Compliance Solutions provides solutions for compliance departments of regulated companies and firms with special
requirements to monitor employee personal trading, including trade surveillance technology.
Mutual Fund Clearing Services provides mutual fund clearing services and recordkeeping to banks, brokerage firms and trust
companies.
Off-Platform Sales offers proprietary mutual funds, ETFs, and collective trust funds outside the Company.
Advisor Services
Through the Advisor Services segment, the Company provides custodial, trading, and support services as well as retirement
business services.
To attract and serve IAs, the Company has a dedicated sales force and service teams assigned to meet their needs. IAs who
custody client accounts at Schwab may use proprietary software that provides them with up-to-date client account
information, as well as trading capabilities. The Advisor Services website is the core platform for IAs to conduct daily
business activities online with Schwab, including viewing and managing client account information and accessing news and
market information. The website provides account servicing capabilities for IAs, including account opening, money
movement, transfer of assets, trading, checking status and communicating with the Schwab service team. The site provides
multi-year archiving of statements, trade confirms, and tax reports, along with document search capabilities.