Cost Basis Solutions For Custodians

Helping Custodians Meet Client Compliance and Service Needs

Netbasis provides custodians with the functionality needed to ensure compliance with new cost basis reporting legislation, and to deliver the high-quality service their clients expect.
From a service standpoint, Netbasis enables custodians to add value and meet client expectations by:

  • 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)
  • Deploying Netbasis throughout a call center, so that agents can provide superior service to callers

Essential Compliance Capabilities

Netbasis provides custodians with a wide range of capabilities vital for regulatory compliance, including:

  • Support for FIFO, specific lot and average cost (for mutual fund and DRiP shares) lot relief methods
  • Designation of realized gains/losses as short-term/long-term
  • Tracking of all corporate actions affecting a security
  • Correct accounting for the conversion of mutual fund shares from B to A class
  • Compliance with all applicable IRS rules on wash sales, short sales, gift shares and date of death valuation
  • Verification/correction of cost basis information of older share lots received from other financial intermediaries
  • Delivery of cost basis-related information to counterparties within 15 days of a customer account transfer

Implementation Options

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 call center agents, or be offered directly to clients via the Internet. Contact a Netbasis sales professional to discuss the implementation options available to custodians.

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