DTCC is helping customers comply with US cost basis reporting regulations for mutual fund assets with a secure and automated standard for transferring data between financial intermediaries.
The enhancements to its Cost Basis Reporting Service (CBRS) are designed to help the industry meet specific regulations outlined in the US Emergency Economic Stabilisation Act, enacted in October 2008, which mandates firms to pass cost basis information among financial intermediaries when assets move from one institution to another. Federal regulations for mutual fund assets take effect in January 2012.
Ahead of this new requirement, the CBRS platform provides a secure, automated and centralised communications hub for passing cost basis information from one participant to another on all asset transfers among broker/dealers, transfer agents, issuers, mutual funds and custodian banks.
"SunGard has been diligently preparing for and is ready to comply with the complex regulatory requirements surrounding mandatory cost basis reporting for mutual funds," said Jeff Naylor, vice president, Product Management at SunGard's Asset Arena Transfer Agency business unit. "Asset Arena Transfer Agency is fully integrated with DTCC's CBRS service which will help our customers meet this critical regulatory requirement in an efficient and cost-effective manner."
Next in the pipeline for CBRS are additional enhancements to help firms comply with future reporting mandates for fixed income and options, expected to take effect in 2013.
