US-based FolioDynamix, which provides web-based wealth management technology, has released FDx SingleSight Version 6.2, an automated tax lot reconciliation process designed to handle heavy turnover in modern financial markets.

The offering automatically synchronises tax lots to back-office custodians, eliminating 99.8 per cent of manual labour for tax lot reconciliation, hopefully slashing the associated costs and potential errors. (“Tax lot” accounting relates to techniques that traces the dates of purchase and sale, cost basis, and transaction size for each security in a portfolio, regardless of whether a person makes more than trade in the same security.)

"With fluctuating financial markets, uncertain and evolving tax laws and increased expectations from clients, wealth management firms and advisors are challenged with trying to optimise the tax consequences of trades to favour clients, and coordinating with multiple custodians and ensuring alignment for 1099 reporting compliance adds even more complexity," said Aaron Schumm, senior vice president of products for FolioDynamix.

Besides the tax function, FDx SingleSight 6.2 also includes enhancements for reporting, performance management and business activity monitoring.