Cost-Effective
Compliance for Transfer Agents
NetBasis provides transfer agents with a cost-effective solution for
complying with
new cost basis reporting legislation.
It helps minimize the system upgrades needed to gain the capabilities required
by the new rules.
| Among its most
important benefits, NetBasis enables transfer agents to capture and track share
lots acquired under virtually any circumstance, including: |
| • |
Gifts |
| • |
Reinvestment |
| • |
ESOP and other stock plans |
| • |
Voluntary cash purchases |
| • |
Transfer of ownership |
| • |
Cash or stock dividends, splits and other
corporate actions |
Efficient,
Comprehensive Compliance
NetBasis facilitates efficient regulatory compliance by providing transfer
agents with a host of other essential capabilities, including: |
| • |
Support for FIFO, specific lot
and average cost (for mutual fund and DRiP shares) lot relief methods |
| • |
Characterization 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 |
| • |
The ability to calculate cost basis
quickly, to comply with the 15-day window for providing cost basis information
to counterparties when a shareholder account is transferred |
Client
Service Benefits
Transfer agents wishing to offer the highest level of service to their
clients can use NetBasis to: |
| • |
Provide current cost basis
information for all positions in a shareholder’s portfolio, including
those acquired before the legislation’s effective date |
| • |
Verify, correct and – if necessary
– calculate cost basis information of older (i.e., pre-legislation) share
lots received from counterparties |
| • |
Put powerful portfolio management
capabilities into the hands of shareholders, 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) |
| • |
Enhance call center service quality by
giving agents desktop access to NetBasis |
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 issuer
clients and shareholders via the Internet.
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