This industry-first tax data service for the investment advisory marks the entry of SIX into the front-office of wealth management. With this, SIX continues to expand beyond its historical award-winning and primarily back-office focused corporate actions, reference and compliance data offering.
By assessing the financial data of individual securities and complex financial products, SIX Tax Score calculates a daily tax cost ratio for the asset in question. The primary advantage of the offering is the provision of a tax efficiency score in the form of a comparable mathematical value on an individual security level. This can serve as an indicator of the future tax-related charges of investing in that security. The calculation method of the new data tool was developed in partnership with a global Big Four tax partner.
SIX Tax Score will benefit various market participants who can now deliver important tax cost information to investment advisors or directly to individual investors. The tax efficiency score can also be used in the portfolio management investment process to find more suitable financial products from a tax-related cost perspective.
The product also supports further workflow automation of wealth managers and asset managers. The provision of the tax data on the financial instrument level helps clients meet cost transparency disclosure requirements while providing a framework for recommending more tax-efficient investment alternatives.
The new data offering currently covers tax-related charges on dividend and interest income, fund distributions and capital gains for equities, bonds, funds and structured products for individual investors under Swiss, UK and French tax jurisdictions. SIX is working on expanding the scope of SIX Tax Score to include other tax jurisdictions to service an increasingly global customer base.
Marion Leslie, Head Financial Information & member of Executive Board, SIX, highlighted: “We are very excited to unveil this new and innovative data offering that marks our entry into front-office data provision in wealth management. SIX Tax Score will allow banks, wealth managers and asset managers to not only fulfil their tax reporting duties in their back office but also anticipate tax costs when advising clients. With increasingly complex and ever-changing tax regimes, this will become crucial in investment decisions and client advisory."
"At SIX, we will continue to develop new data services and analytics for the whole securities value chain, including advisory and research, to ensure our clients have access to premier data solutions that help them meet their business objectives.”
Further information about SIX Tax Score is available here.