SunGard is offering a Cost Basis Reporting Engine, a tax lot accounting solution to help financial services institutions using any back-office system or combination of systems to meet new cost basis reporting requirements as part of the Emergency Economic Stabilization Act passed on October 10, 2008.
The new legislation requires brokers and financial services providers to report cost basis for transactions involving publicly traded securities and fund investments phasing into effect from 2011 to 2013.
SunGard's Cost Basis Reporting Engine allows for integration with multiple systems of record to provide a consolidated view of client tax lot data. The Cost Basis Reporting Engine integrates with SunGard solutions, including WealthStation, an integrated wealth management platform, Phase3, a real-time, order-to-settlement securities processing system, and Asset Arena Transfer Agency, a Web-based system for streamlining the management of investor accounts and transactions. Because the Cost Basis Reporting Engine is back-office agnostic, it can also be integrated with non-SunGard wealth management, accounting and brokerage systems, to meet cost basis reporting requirements, thereby helping customers avoid the time and cost of remediating their existing systems.
The Cost Basis Reporting Engine is also integrated with Compliance Plus, SunGard's tax information reporting service, which provides tax reporting information for basis adjustments over time and also incorporates the Engine's basis calculation into 1099-B reporting.
In addition, SunGard's Global Plus, Charlotte, and AddVantage trust accounting solutions feature integrated cost basis reporting capabilities. When dealing with international accounts, SunGard's Global Plus asset management and custody solution supports tax cost accounting in both local and base currencies.
Kevin Rafferty, president of SunGard's wealth management business, said, "SunGard recognizes the need for a flexible and scalable cost basis reporting solution that will help firms comply with the Emergency Economic Stabilization Act. SunGard's Cost Basis Reporting Engine helps firms to avoid costly development efforts to meet these requirements and provides automatic processing of cost basis information to help make the process seamless and efficient, regardless of the back-office systems the firm may be using."
SunGard's Cost Basis Reporting Engine supports tax lot sales methods and provides automatic processing of cost basis calculations including corporate actions, option assignment and exercises and wash sales. The solution provides cost basis updates, recalculation of mutual fund reclassifications, support for Automated Customer Account Transfers (ACATS), a utility for automatic generation of realized/unrealized gains and losses, calculations on average mutual fund cost, and tax lot relief in FIFO and specified lot processing.