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)

Implementation Options

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.