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: |
| • |
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 |
| • |
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 |
Offering a variety of implementation options, NetBasis can provide high-volume batch processing for one-time, periodic or ongoing cost basis 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.
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) |
|
