Schwab Compliance Technologies® Completes Distinguished SOC2 Type II Report

Independent Examination Helps Assure Clients that Security Measures and Processes are in Place to Protect Non-Public Information

Thursday, September 10, 2015 6:00 am PDT



Public Company Information:

"The SOC2 Type II report reflects our ongoing and continuous efforts to meet the highest security standards to assure we are helping client firms meet ever-changing regulatory requirements."

SAN FRANCISCO--(BUSINESS WIRE)--Schwab Compliance Technologies, Inc., a leading provider of advanced employee monitoring services, announced today that it issued a Service Organization Control (SOC) 2 Type II report for Security.

“Schwab Compliance Technologies is responsible for monitoring the trading activity of hundreds of thousands of employees who work for the client firms we serve. Every day we receive approximately 20,000 data feeds from more than 2,000 broker-dealers all over the country, and our clients want assurance that their employee information is secure with us,” said Scott Rister, vice president and general manager, Compliance Solutions. “Our report helps assure the integrity of the services we provide to client firms while making it easier for them to receive the due diligence information they need.”

The need for firms to protect non-public information is at an all-time high and failure to do so can impact a firm’s reputation and growth potential. Schwab Compliance Technologies made a significant investment in attaining this report and underwent an examination conducted by Deloitte & Touche, LLP. The SOC2 Type II report is based on standards established by the American Institute of Certified Public Accountants (AICPA) and is the result of an examination of a service organization's standards and controls around the following seven Security Principles:

  • Organization and management – How the organization is structured and the processes the organization has implemented to manage and support people within its operating units. This includes criteria addressing accountability, integrity, ethical values and qualifications of personnel, and the environment in which they function.
  • Communications – How the organization communicates its policies, processes, procedures, commitments, and requirements to authorized users and other parties of the system.
  • Risk management and design and implementation of controls – How the organization (i) identifies potential risks that would affect the entity’s ability to achieve its objectives, (ii) analyzes those risks, (iii) develops responses to those risks including the design and implementation of controls and other risk mitigating actions, and (iv) conducts ongoing monitoring of risks and the risk management process.
  • Monitoring of controls – How the organization monitors the system, including the suitability and design and operating effectiveness of the controls, and takes action to address deficiencies identified.
  • Logical and physical access controls – How the organization restricts logical and physical access to the system, provides and removes that access, and prevents unauthorized access.
  • System operations – How the organization manages the execution of system procedures and detects and mitigates processing deviations, including logical and physical security deviations.
  • Change management – How the organization identifies the need for changes to the system, makes the changes following a controlled change management process, and prevents unauthorized changes from occurring.

“The past few years have brought about a number of regulatory changes that require firms to be extra diligent in making sure that they remain compliant and their data remains protected. As a result, compliance officers need to be sure that both their own and their vendors’ operations and processes are up to date,” continued Rister. “The SOC2 Type II report reflects our ongoing and continuous efforts to meet the highest security standards to assure we are helping client firms meet ever-changing regulatory requirements.”

About Compliance Solutions

Compliance Solutions empowers firms with a comprehensive suite of automated employee monitoring solutions, designated brokerage services, and a wide range of financial products and services for employees. Formed in 2012, Compliance Solutions monitors approximately $60 billion in total assets and consists of Schwab Designated Brokerage Services and Schwab Compliance Technologies, Inc. (formerly Compliance11, Inc.).

Schwab Designated Brokerage Services has provided employee trade monitoring services to employers in regulated industries for more than 20 years and now serves 1,600 corporate clients covering 250,000 employee accounts. Schwab Compliance Technologies provides advanced, web-based compliance tools and technology to more than 685 corporate clients and 97,000 licensed system users.

About Charles Schwab

At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at Follow us on Twitter, Facebook, YouTube and LinkedIn.


Compliance Solutions consists of Schwab Designated Brokerage Services (DBS), a division of Charles Schwab & Co., Inc. ("Schwab"), and Schwab Compliance Technologies, Inc. ("SchwabCT"), formerly Compliance11, Inc. Schwab Designated Brokerage Services provides brokerage solutions for corporate clients who monitor their employees’ securities activity. SchwabCT provides technology solutions for corporate clients to help facilitate their compliance technology program implementation. Schwab Compliance Technologies, Inc. and Charles Schwab & Co., Inc. are separate but affiliated entities and each is a subsidiary of The Charles Schwab Corporation.

Through its operating subsidiaries, The Charles Schwab Corporation (NYSE: SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at and (0915-5588)

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value.


Charles Schwab
Mike Peterson, 330-908-4334
Intermarket Communications
Mike Gelormino, 212-909-4780

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