Scivantage Maxit Clients Achieve On Time Delivery of 1099s to Investors

100% of Scivantage Maxit clients using the custom tax extract module are able to mail 1099s by IRS deadline

JERSEY CITY, NJ — March 12, 2012Scivantage®, an independent financial technology provider with proven expertise in online brokerage, tax and portfolio reporting, and wealth management applications, announced today that Scivantage Maxit® clients using the custom 1099 tax extract module had a 100% success rate in getting their IRS Form 1099s out to investors on time.

This year is the first time brokerages have to include adjusted cost basis on the 1099 forms, which had to be sent out to investors by Feb. 15, 2012, to meet the U.S. Internal Revenue Service (IRS) deadline. Scivantage Maxit’s retail and institutional clients using the custom tax extract module were able to send 1099 forms to all of their clients on time and using accurate data, avoiding an influx of client complaints and maintaining their high standard of customer service.

“Data accuracy is crucial when it comes to getting clients’ cost basis information on time for filing taxes,” said Cameron Routh, Senior Vice President and Managing Director of Strategic Products at Scivantage. “Clients who chose to use our customized tax extract module were able to avoid unnecessarily frustrating investors and causing potential errors in their tax filings by getting cost basis data to tax reporting vendors in a timely manner to comply with the Feb. 15 deadline.”

“Following the 2011 tax season, we will see a lot more corrections on 1099s as Phase 3 of the new cost basis reporting rules goes into effect,” said Isabella Fonseca, Research Director of Wealth Management at Celent. “Firms may have underestimated the complications around investors having to file 1099s. Brokerages will have to take extra due diligence to ensure accuracy, as well as continue to educate their investors and employees on the changing CBR regulatory landscape.”

“The IRS cost basis reporting regulations have ushered in a new reality for financial institutions,” continued Routh. “Even with timely delivery of 1099s, following the upcoming tax season, the industry should expect to see an influx of corrections that will need to be made. Having access to accurate data will make it easier for firms to issue these corrections to their clients.”

Scivantage Maxit® is the only fully automated, real-time solution to provide accurate, adjusted cost basis reporting through a highly configurable platform. Maxit enables broker-dealers, mutual funds, custodians and prime brokers to streamline tax and portfolio reporting and deliver a superior client experience, while reducing operational costs and meeting regulatory requirements.

About Scivantage

Leading financial institutions depend on Scivantage for essential front- and middle-office applications that deliver transaction-critical data, automate key business processes and drive operational efficiencies. Scivantage’s proven, back-office independent brokerage solutions offer a powerful suite of applications that span the workflow of financial professionals and support the complex investment needs of the retail investor. From online trading and event notification management to automated account opening, maintenance and funding, Scivantage enables financial institutions and financial professionals to dramatically reduce operational costs, strengthen customer relationships and improve productivity. For more information, please visit www.scivantage.com or contact us at +1.866.724.8268.

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Posted in Press Release.