Charles Schwab 2014 Annual Report Download - page 22

THE CHARLES SCHWAB CORPORATION
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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 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 Chinese-, 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, Corporate Brokerage Services, Stock Plan
Services, and Compliance Solutions 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. In 2012, the Company
launched Schwab Index Advantage®, a unique 401(k) plan offer designed to lower costs, simplify investing and help workers
better prepare for retirement. Services also include support for Roth 401(k) accounts and 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.
Corporate Brokerage Services provides specialty brokerage-related services to corporate clients through its Corporate
Brokerage Retirement Services business and mutual fund clearing services to banks, brokerage firms and trust companies,
and also offers proprietary mutual funds, ETFs, collective trust funds, and investment management outside the Company to
institutional channels. Corporate Brokerage Retirement Services serves independent recordkeepers seeking a custodian for
retirement plan assets. Schwab provides custody services tailored for retirement plans seeking a low-cost solution. Plans held
at Schwab are either self-trusteed or trusteed by a separate, independent trustee. Corporate Brokerage Retirement Services
also offers the Schwab Personal Choice Retirement Account®, a self-directed brokerage offering for retirement plans and the
Company Retirement Account, a brokerage account designed to hold the assets of an individually designed business
retirement plan.
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.
Advisor Services
Through the Advisor Services segment, the Company provides custodial, trading, and support services to IAs.
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 submitting and retrieving client account information and viewing news and
market information. This platform provides IAs with a comprehensive suite of electronic and paper-based reporting
capabilities. The Company offers online cashiering services, as well as internet-based eDocuments sites for both IAs and