SunGard, the US-based financial services technology firm, has launched its Cost Basis Reporting Engine, a product designed to assist financial institutions with new tax lot reporting requirements.

As a result of the 2008 Emergency Economic Stabilisation Act, as of the start of 2011 financial intermediaries will be obliged to report cost basis for transactions involving publicly traded securities and fund investments to the Internal Revenue Service. As such, firms such as broker-dealers and fund custodians must update their systems to comply with the new requirement.

Cost Basis Reporting Engine automates cost basis calculations, including corporate actions, and can recalculate to take account of mutual fund reclassifications along with supporting customer account transfers. It can also automatically generate realised and unrealised gains and losses, and calculate mutual fund costs and tax lot relief.

Cost Basis Reporting Engine integrates with SunGard’s wealth management platform WealthStation, along with other packages from the firm’s range. The cost basis engine also integrates with non-SunGard wealth management, accounting and brokerage systems, the firm said in a statement.