Cost Basis Solution For Brokers And Dealers
A Valuable Compliance – and Service – Resource for Broker/Dealers
Netbasis gives broker/dealers the functionality necessary for immediate compliance with new cost basis reporting legislation. It also lays the foundation for value-added client services.
Netbasis enables broker/dealers to:
- Ensure accurate cost basis calculations for their clients on securities dating back to 1925
- Support multiple lot relief methods, including FIFO, specific lot and average cost (for mutual fund and DRiP shares)
- Determine whether a realized gain/loss is short-term/long-term
- Track all corporate actions affecting a security, no matter how complicated
- Correctly account for the conversion of mutual fund shares from B to A class
- Comply with all applicable IRS rules on wash sales, short sales, gift shares and date of death valuation
- Verify and correct cost basis information of older share lots received from counterparties
- Provide cost basis-related information to counterparties within 15 days of transferring a customer’s account
Enhanced Client Service
Depending on a firm’s implementation preferences, Netbasis can enable broker/dealers to provide numerous value-added client services that can serve as a valuable competitive differentiator. These services include:
- Providing current cost basis information for all positions in a client’s portfolio, including those acquired before the legislation’s effective date
- Putting powerful portfolio management capabilities into the hands of customers, including a tax optimization tool for running “what if” and tax lot relief scenarios around the various lot accounting methods (e.g., LIFO, FIFO, specific lot)
Offering a variety of implementation options, Netbasis can provide high-volume batch processing for one-time, periodic or ongoing cost basis calculation, reconstruction/verification and feeding of tax systems or Form 1099 preparation applications. Netbasis can also host data, serve as a desktop resource for brokers or call center agents, or be offered directly to clients via the Internet.
Contact a Netbasis sales professional to discuss the implementation options available to brokers/dealers.