SIX introduces data service to simplify assessment of tax-related costs for front-office

Maria Nikolova

SIX Tax Score analyses the tax consequences of financial products, available to banks, wealth managers and asset managers.

SIX today announced the launch of “SIX Tax Score”, a data service designed to analyse the tax consequences of financial products, available to banks, wealth managers and asset managers in the form of a benchmark covering Swiss, UK and French tax jurisdictions.

This service 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.

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