Interactive Data, a provider of financial market data, analytics and related solutions, has said that its Pricing and Reference Data business has worked with Scivantage, a provider of web-based front and middle-office technology solutions to the financial services industry, to develop tools to help mutual funds and brokerage firms meet industry cost basis reporting requirements.

Under the Energy Improvement and Extension Act of 2008, brokerage firms are required to report adjusted cost basis information to both their clients and the Internal Revenue Service (IRS), beginning with stock acquired on or after January 1, 2011.

Scivantage will utilize the Cost Basis Calculator, part of Interactive Data’s Cost Basis Service, as an integrated component of Maxit, Scivantage’s automated cost basis and portfolio tax reporting system.

Scivantage Maxit is an enterprise solution that integrates with back-office and clearing systems and offers a suite of tax-based investment decision support tools for financial advisers and individual investors.

The Cost Basis Calculator can automatically adjust original cost basis for corporate actions and dividend reinvestments. It can also assist clients in identifying the originally purchased security, following mergers, name changes or other corporate events.

Charles Price, senior director of entity data products at Interactive Data, said: Mutual funds and brokerage firms need sophisticated resources to process corporate actions, calculate cost basis, manage tax processes and streamline their reporting formats. Interactive Data’s service, combined with Scivantage Maxit, can help financial institutions more effectively prepare for and meet the requirements of cost basis reporting regulations.