SEC Censures Schwab on Late Trading

Charles Schwab (SCH Quote) joined the list of financial firms settling with the Securities and Exchange Commission over their role in the mutual fund scandal.

The San Francisco-based broker-dealer agreed Tuesday to pay a fine of $350,000 to settle a so-called late trading case. The company, which neither admitted nor denied wrongdoing in the case, also consented to an SEC censure.

The SEC charged that Schwab allowed its investment adviser customers to change mutual fund orders after the 4 p.m. Eastern time market close. Late trading enables certain customers to unfairly capitalize on late-breaking news at the expense of long-term mutual fund investors. ...