Chasing Alpha: Tax Alpha May Be the Most Reliable Alpha

Capturing alpha – investment outperformance against its relevant benchmark – is immensely challenging. In fact, some studies show 9 out of 10 managers underperform their benchmarks[1]. Yet, everyone from the largest asset managers to individual investors spend immense effort to find an edge that will yield even a tiny sliver of performance over a benchmark. […]

Cost Basis is Sexy

Cost basis is a funny thing. Every investor knows a little something about it. Since 1913 it’s been the foundation for taxes on capital gains (I’m not absolutely certain about that date; but, really, who’s going to check?). It has appeared on statements and brokerage websites for years. It was almost always incorrect. The basic […]

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Cost Basis Reporting Takeaway – Disallowed Carryover: Tracking and Reporting

With 2015 now underway, cost basis reporting is top-of-mind for brokers and investors as they comply with the complex mandates, and look to maintain operational efficiency. Bob Linville, Director of Product Management, Scivantage, helps to clarify the meaning of disallowed carryover offset in his most recent video – Reporting and Tracking Disallowed Carryover Offset – […]

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Cost Basis Reporting Takeaway: Identifying Debt

The operational challenges of cost basis reporting compliance have not yet fully abated. “There will likely be a tsunami of calls from confused investors who don’t understand their tax reports and some incorrect reporting by financial firms which will need to redo their work,” describes cost basis expert Bob Linville, Scivantage Director of Product Management, […]

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Cost Basis Reporting Takeaway: FinOps Reports on the “Final Lap” of Regulations

While Phase III Cost Basis Reporting regulations were implemented in January 1, 2014, firms are still grappling with the operational toll of compliance, particularly as it relates to simple debt instruments. In this in-depth FinOps Report piece, industry expert Bob Linville, Director of Product Management at Scivantage, takes a focused look at the final phase […]

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Scivantage to Participate in Cost Basis Workshop Panel at SIFMA Operations Conference

Bob Linville, Scivantage Director of Product Management will be participating in a workshop panel at the SIFMA Operations Conference and Exhibition 2014 (SIFMA Ops 2014) on Tuesday, April 29, 2014. Moderated by Justin Hopkins, Strategic Project Manager, Broadridge Financial Solutions, the panel joins industry thought leaders for a discussion on “Phase III of Cost Basis […]

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Cost Basis Reporting: The Real Driver Behind Cost Basis Reporting Spending

By Isabella Fonseca, Research Director, Wealth Management at Celent Bio: Isabella Fonseca is a research director within Celent’s Wealth Management group. Mrs. Fonseca’s current research focuses on wealth management technology in both Europe and North America. Mrs. Fonseca has extensively covered topics on wealth management trends, retail brokerage, financial planning, advisor platforms, and cost basis reporting.  […]

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Financial Information Forum Responds to IRS Cost Basis Reporting Regulations

Further to our recent blog post, IRPAC Commentary Evaluates IRS Cost Basis Reporting Regulations, various industry organizations are raising their concerns to the Internal Revenue Service (IRS) following the release of the Final Regulations for Basis Reporting by Securities Brokers and Basis Determination for Debt Instruments and Options. These mandates have added another layer of complexity into the cost basis landscape and institutions have taken advantage of the opportunity to outline the critical issues they foresee with the rules as they currently stand during the open comment period.

In an August 22 letter, The Financial Information Forum (FIF), in which Scivantage is an active member, referenced that there are many issues to be addressed in regards to cost basis reporting regulations and focused on the rules that will become effective January 1, 2014. The organization has identified several requirements it believes will “either inflict hardship on taxpayers or place an undue burden on brokers that must be addressed immediately” and highlights that the requirements for transfer statements is unworkable in its current form…

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IRPAC Commentary Evaluates IRS Cost Basis Reporting Regulations

The evolving tax reporting laws continue to create significant challenges for financial institutions. When the Internal Revenue Service (IRS) releases new rules, many organizations, during the open comment period, carefully review the proposed mandates and provide both analysis and recommendations on the complex reporting requirements. On May 13, 2013, the IRS announced it was issuing the proposed and temporary regulations, 1.6049-9T. These guidelines relate to the reporting of bond premium and acquisition premium, subject to reporting for a debt instrument acquired on or after January 1, 2014.

Responding to the IRS’ request for comments on the regulations, the Information Reporting Program Advisory Committee (IRPAC) opined and made suggestions on several of the IRS proposed adoptions. In its comment letter to the IRS, IRPAC addresses a variety of issues, including reporting for market discount, premiums and the handling of tax exempt original issue discount, as well as final regulations regarding Basis Reporting by Securities Brokers and Basis Determination for Debt Instruments and Options….

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Institutional Insights: Mobilizing for Fixed Income and Options Requirements

Phase III of the U.S. Internal Revenue Service (IRS) cost basis reporting (CBR) regulations, which were announced in April 2013, have several staggered effective dates that will have varying levels of impact on brokers. In order to encourage open discussion about what the rules really mean and how we can help our clients decipher them, Scivantage recently held an interactive panel event for the CBR community to provide clarity on the fixed income and options regulations ahead of the effective date of Jan. 1, 2014.

Event participants got a chance to hear from distinguished industry experts. Led by Dan Mayo, Principal of KPMG, the panel also included Paul Dumas, Manager of Tax Operations at Scotiabank; Arthur Wolk, Senior Vice President of Product Strategy at SunGard Wall Street Concepts; and Phillip Varghese, Vice President of Investment Reporting at Scivantage. Cameron Routh, Executive Vice President of Corporate Development at Scivantage moderated the discussion, which covered …