Charles Schwab 2014 Annual Report Download - page 23

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THE CHARLES SCHWAB CORPORATION
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their clients that provide multi-year archiving of online statements, trade confirms and tax reports, along with document
search capabilities.
To help IAs grow and manage their practices, the Company offers a variety of services, including access to insights on
practice marketing and business development, business strategy and planning, and transition support. The Company
maintains a website that provides interactive tools, educational content, and research reports to assist advisors thinking about
establishing and managing their own independent practices.
The Company offers an array of services to help advisors establish their own independent practices through the Business
Start-up Solutions package. For some IAs this includes access to dedicated service teams and outsourcing of back-office
operations, as well as third-party firms who provide assistance with real estate, errors and omissions insurance, and company
benefits.
The Company offers a variety of educational materials, programs, and events to IAs seeking to expand their knowledge of
industry issues and trends, as well as sharpen their individual expertise and practice management skills. The Company
updates and shares market research on an ongoing basis, and it holds a series of events and conferences every year to discuss
topics of interest to IAs, including business strategies and best practices. The Company sponsors the annual IMPACT®
conference, which provides a national forum for the Company, IAs, and other industry participants to gather and share
information and insights.
IAs and their clients have access to a broad range of the Company’s products and services, including individual securities,
mutual funds, ETFs, managed accounts, and cash products.
The Advisor Services segment also includes the Retirement Business Services business unit. Retirement Business Services
provides trust, custody, and retirement business services to independent retirement plan advisors and independent
recordkeepers. Plan assets are held at the Business Trust division of Schwab Bank. The Company and independent retirement
plan providers work together to serve plan sponsors, combining the consulting and administrative expertise of the
administrator with the Company’s investment, technology, trust, and custodial services. Retirement Business Services also
offers the Schwab Personal Choice Retirement Account® for retirement plans.
Regulation
CSC is a savings and loan holding company and Schwab Bank, CSC’s depository institution subsidiary, is a federal savings
bank. CSC is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the Federal
Reserve). Schwab Bank is subject to supervision and regulation by the Office of the Comptroller of the Currency (the OCC),
as its primary regulator, the Federal Deposit Insurance Corporation (FDIC), as its deposit insurer, and the Consumer
Financial Protection Bureau (CFPB). Collectively, the rules and regulations of these regulators cover safety and soundness
and consumer protection. CSC and Schwab Bank are also subject to regulation and to various requirements and restrictions
under state and other federal laws. For additional information on the regulations applicable to CSC, Schwab, Schwab Bank,
and optionsXpress, Inc., see “Item 8 – Financial Statements and Supplementary Data – Notes to Consolidated Financial
Statements – 22. Regulatory Requirements.”
CSC is required to serve as a source of strength for Schwab Bank. Prior to January 1, 2015, CSC, as a savings and loan
holding company, was not subject to specific statutory capital requirements. Beginning on January 1, 2015, CSC is subject to
new capital requirements set by the Federal Reserve. For further information, see “Item 7 – Management’s Discussion and
Analysis of Financial Condition and Results of Operations – Current Market and Regulatory Environment and Other
Developments.”
The securities industry in the United States is subject to extensive regulation under both federal and state laws. CSC’s
principal U.S. broker-dealers are Schwab and optionsXpress, Inc. Schwab is registered as a broker-dealer with the United
States Securities and Exchange Commission (SEC), the fifty states, and the District of Columbia and Puerto Rico.
optionsXpress, Inc. is registered as a broker-dealer with the SEC, the fifty states, the District of Columbia, Puerto Rico, and
the Virgin Islands. Schwab and CSIM are registered as investment advisors with the SEC. Additionally, Schwab and
optionsXpress, Inc. are regulated by the Commodities Futures Trading Commission (CFTC) with respect to the commodity