Economic Stabilization Act of 2008 - Cost Basis Reporting

As part of the Emergency Economic Stabilization Act that was signed on October 3, 2008, there will be more stringent requirements on financial intermediaries such as issuers, transfer agents, brokers, banks and mutual funds, to report customers’ basis in securities transactions. Legislation will be implemented in three stages:

• Equity stock acquired on or after January 1, 2011
• Mutual funds and dividend reinvestment plans (DRiP) shares acquired on or after January 1, 2012
• Other security types, such as debt issues, options, private placements acquired on or after January 1, 2013

The industry will face several challenges to implement compliant solutions. Properly allocating basis for corporate actions events, ensuring wash sale rule logic is in place, providing clients’ open tax lot and cost basis information when accounts are transferred, and accurate IRS reporting are some examples. Davidsohn Global Technologies has experienced consultants and proven technology solutions that can assist clients in gaining compliance and meeting these mandatory objectives. For detailed information refer to the ATTLAS product information page.

---

For Additional Information: TEL: 212.208.0100 Please contact us here.