GainsKeeper in the News

Genworth Financial Trust Company Chooses GainsKeeper® from Wolters Kluwer Financial Services for Cost Basis Reporting Compliance

Implements Phase 3 Debt Functionality

WALTHAM, Mass. – Sep. 30, 2013 – Wolters Kluwer Financial Services today announced that Genworth Trust has implemented its GainsKeeper® solution to simplify the process investors use to complete their tax returns in compliance with all phases of cost basis reporting, including Phase 3 debt reporting.

The Emergency Economic Stabilization Act of 2008 mandates that brokerage firms and custodians provide increased reporting and transparency to investors for gains and losses. Phases 1 and 2, cost basis reporting on equities and mutual funds, have already been implemented. Complying with those regulations was a challenge for many securities operations across the country.

Phase 3 debt reporting requirements, which go into effect January 1, 2014, are widely recognized as the most challenging of the three phases. The rules require cost basis calculations for Original Issue Discount (OID), bond premium and market discount that must be integrated with corporate actions and wash sales.

“As a custodian servicing clients of independent financial advisors, implementing GainsKeeper not only makes it easier for our clients to prepare tax returns, but also it reduces the complexity of complying with the steady stream of regulatory changes,” said Gaurav Auditya, director of Custody & Trading at Genworth Trust. “As a result, we can invest more time and energy in building capabilities our customers want.”

“The unique challenge is not just achieving compliance with the cost basis reporting requirements, but mobilizing the organization to deliver operational changes with technology upgrades efficiently. We are very excited to work with Genworth Trust and help them stay ahead of the curve and the industry,” said Chuck Ross, general manager of Investment Compliance Solutions at Wolters Kluwer Financial Services.

“Together, we were able to implement a new technology quickly to solve a complex business and regulatory need within some very tight deadlines. We’re ahead of schedule complying with regulations,” said Raygar Khailany, director of Technology at Genworth Trust.

“There are significant complexities in the tax rules and calculations applicable for reporting of debt in particular,” notes Stevie D. Conlon, senior director and tax counsel, Wolters Kluwer Financial Services. “For example, corporate actions affecting debt and the tax rules applicable for calculating OID, market discount and bond premium for various specific types of bonds, including those subject to special rules such as convertible debt and derivative-like instruments, can be extremely complicated. These nuances present significant challenges for brokers in preparing for timely compliance with Phase 3.”

To help firms prepare to meet the Phase 3 requirements of this law, Wolters Kluwer Financial Services also published the Cost Basis Phase 3 Debt Reporting Readiness Checklist.

About Genworth Financial Trust Company

Genworth Financial Trust Company, an affiliate of Genworth Financial Wealth Management, Inc., is a custodian with over $14 billion in assets, serving over 4,000 independent advisors using the Genworth Financial Wealth Management platform.

About Genworth Financial Wealth Management, Inc.

Genworth Financial Wealth Management, a privately held company, strategically supports independent financial advisors in building great businesses by providing comprehensive solutions for their entire practices. GFWM offers a sophisticated investment management platform, robust client relationship tools and support, and innovative practice management programs that combine the latest industry research with practical expertise and experience. The firm has approximately $20 billion in assets on its platform and is dedicated to serving independent advisors who make a difference in the lives of their clients.

About Wolters Kluwer Financial Services

Whether complying with regulatory requirements, addressing a single key risk, or working toward a holistic risk management strategy, more than 15,000 customers worldwide count on Wolters Kluwer Financial Services for a comprehensive and dynamic view of risk management and compliance. Wolters Kluwer Financial Services provides audit, risk and compliance solutions that help financial organizations improve efficiency and effectiveness across their enterprise. With more than 30 offices in over 20 countries, the company’s prominent brands include: FRSGlobal, FinArch, ARC Logics for Financial Services, Bankers Systems, VMP® Mortgage Solutions, AppOne®, GainsKeeper®, Capital Changes, NILS, AuthenticWeb™ and Uniform Forms™. Wolters Kluwer Financial Services is part of Wolters Kluwer, a leading global information services and publishing company with annual revenues of (2012) €3.6 billion ($4.6 billion) and approximately 19,000 employees worldwide. Please visit our website for more information.

Wolters Kluwer Financial Services
130 Turner Street, Building 3, 4th Floor
Waltham, MA 02453
Phone: 800-472-1009 Option 2