Transfer Agents

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.