Xcitek LLC, a leader in the delivery of market data and securities information to the financial community, today announced the availability of a new product that brings significant new opportunities for savings to financial institutions. The new product, Xcitek Client Cost Basis, directly addresses the problem brokers and advisors have in responding to client requests for cost basis information. While these requests are a year-round burden, they are especially heavy during the tax season, causing some firms to increase staff at call centers and branch offices in order to handle the inquiry volume.
The new Client Cost Basis service enables investors to calculate their own cost basis using Xcitek's proprietary Cost Basis Calculator located as a customized tool on the broker or advisor's website. The investor enters minimal information to get a bottom-line calculation in seconds that factors-in all splits, spin-offs, distributions, mergers and other cost basis affecting corporate actions. This user-friendly calculator can handle equity positions initiated as far back as 1900 as well as the effects of Dividend Reinvestment Plans.
Xcitek Client Cost Basis evolved out of Xcitek's fast-growing Cost Basis Service (XCB), introduced in 2000. XCB supplies hundreds of financial institutions with value-added data, such as allocation factors and tax opinion, stemming from corporate actions that have cost allocation and tax status consequences. The Cost Basis Calculator, already available to XCB clients, automatically computes the adjusted cost basis of any position taking into account all splits, spin-offs, distributions and other cost basis-affecting corporate actions.
"No institution maintains cost basis on 100% of the positions in client accounts. Even where the effort has been made, positions transferred-in or pre-dating the cost basis effort, rarely have the required information," said Joseph M. Carvalhido, Managing Partner at Xcitek LLC. "And that's a 'best-case' scenario. Far more typical is the institution that only tracks cost basis for the top tier of its clients through the use of portfolio accounting software. That leaves the vast majority of clients without access to this critical information, and the task of researching the position falls to the broker or advisor. Not only does this product make the research easy, but it goes to the next step of enabling the client to do it themselves."