Broadridge Partners with Apex Silver on Integrated Tax Reporting

Broadridge Financial Solutions has partnered with Apex Silver to launch a new product that it believes can help financial services companies cut costs associated with the tax season.

Broadridge has a long history of providing tax data and reporting by creating forms that are sent out annually to customers, account holders and regulators. Providing cost-based reporting from Apex Silver, which was the Silver Management Group of Cos. before Apex Fintech Solutions acquired it in 2021, is a common search and data management model for banks, broker-dealers, custodians and large registered investment advisors.

Instead of relying on multiple vendors for various aspects of tax reporting, outsourcing the integrated Broadridge and Apex Silver system can help companies cut costs while staying on top of changing tax rules, increasing transaction volumes and new asset classes, according to Thomas Burke, President. such as cryptocurrencies. Broadridge Revenue Service.

“Combining those two things solves a couple of problems,” Burke said. “This certainly reduces the costs associated with managing multiple systems, but it also improves the efficiency of dealing with issues related to the tax season.”

Broadridge and Apex Silver have been collaborating for several years, have common clients and have already created an integration. He added that bringing them together in a more formal capacity would allow them to expand further.

“You don’t often think of tax reporting as an innovative industry. I think it’s really ripe for destruction, Burke said.

Legislation following the global financial crisis requires brokers to report costs to clients. According to Blake Henry, CEO of Apex Silver, companies at the time had to struggle to put together their own solution to meet deadlines, but more than a decade later, they are finding systems struggling to keep up with changing regulations.

“Solutions that worked ten years ago, some of them no longer work. Others are just tense and on edge,” Henry said. “Firms can either invest another $10 million and try to raise [existing systems] up [to date]or outsource it much cheaper.”

At the same time, trading volume for brokerages skyrocketed after the elimination of fees and the use of automatic rebalancing, which made it more difficult to calculate the cost basis, he added.

“As more and more firms look for ways to compete on tax loss collection and tax alpha in decision making, the capabilities we are bringing together will help make it easier to get that timely information,” Henry said.

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