Shadow Financial Systems Addresses Cost-Basis Legislation with Increased Functionality
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PISCATAWAY, N.J. (October 25, 2011) – Shadow Financial Systems, developers of solutions for global securities processing, reconciliation, clearing, treasury and accounting, today announced details of new functionality that addresses requirements resulting from cost-basis legislation. Deployed as an enterprise or point solution, ShadowSuite is the industry’s first truly scalable, multi-currency, multi-asset, multi-entity, real-time clearing platform available via software-as-a-service or client-hosted software. Since August 2011, ShadowSuite has included this new functionality that handles cost-basis accounting, one of the most complicated tax reporting challenges.
New requirements were placed on financial intermediaries such as brokers, banks, custodians, transfer agents, mutual funds and issuers to report accurate, adjusted cost basis to investors and the IRS. As a result, brokers, custodians and banks have three years to implement system upgrades to track and capture the adjusted cost-basis information for securities transactions that occur for those securities acquired on or after January 1, 2011 or form 1099-B reporting. Penalties for failing to comply can be steep.
Donald Marino, CEO of Shadow Financial Systems, commented, “Helping our clients stay in compliance with regulatory related issues is a prime focus of our research and development team. Our customers know they can rely on Shadow Financial Systems to provide the automation that will streamline the labyrinth of tax reporting requirements. Our new cost-basis functionality is another great example of Shadow delivering on this commitment.”
The cost-basis functionality is included in on-premise and software-as-a-service versions of ShadowSuite.
About Shadow Financial Systems
Founded in 1997 by industry professionals, Shadow Financial’s technology provides comprehensive post-trade processing, treasury and accounting functionality on a cost-effective platform for trading organizations. Among the Company’s clients are NYSE Arca, National Financial Services LLC, a Fidelity Investments Company, Newedge USA, MF Global, and Raymond James & Associates. More information can be accessed at www.shadowfinancial.com.