Charles Schwab & Co., Inc has agreed to pay a fine of $175,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

Between January 2018 and May 2025, Schwab failed to report or timely report approximately 2.8 million fractional share transactions to the FINRA/Nasdaq Trade Reporting Facility (TRF) or the Over-the-Counter Reporting Facility (ORF), in violation of FINRA Rules 6380A, 6622, and 2010.

Additionally, from July 2022 to July 2023 Schwab inaccurately reported approximately 690,000 fractional share transactions to the TRF and ORF, in violation of FINRA Rules 6380A, 6622, 7230A, 7330, and 2010.

Finally, from January 2018 through May 2025, the firm failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures, reasonably designed to comply with its trade reporting obligations, in violation of FINRA Rules 3110(a) and (b) and 2010.

The firm agreed to a censure in addition to the $175,000 fine. It is also required to pay the regulatory transaction fees owed for the unreported fractional share trades pursuant to Section 3 of Schedule A to FINRA’s By-Laws.

Schwab has been a FINRA member since 1970. The firm conducts a general securities business. It has more than 17,000 registered persons and nearly 450 branches, including its headquarters in Westlake, Texas.