Swiss stock exchange, or SIX, has announced today that it had launched (SIX Tax Score), which stands as a data service designed to analyze the various tax consequences of financial products. This service will be available to wealth managers, banks, and asset managers. All of these parties can access it by a form of a benchmark, which covers UK, Swiss, and French tax jurisdictions.
Pushing Into Front-Office Services
With the launch of this service, it marks SIX’s first entry into the front-office of the wealth management sector. Through doing so, SIX has continued to expand beyond that of the historical and primarily back-office focus of its reference, corporate actions, and compliance data offerings, which are all award-winning.
Through the process of assessing the financial data of complex financial products and individual securities, the SIX Tax Score is capable of calculating a daily tax cost ratio for the asset itself. One of the biggest advantages this offering can give, is it provides a tax efficiency score, doing so by way of a comparable mathematical value on the level of an individual security.
This value can serve as a measuring stick regarding the future charges of investing in that security, when it comes to tax. This new data tool’s calculation methods was developed thanks to the partnership of a Big Four global tax partner.
Helping Everyone Involved
The SIX Tax Score will stand to benefit an array of market participants. These participants can now deliver important tax cost information to either individual investors, or to investment advisors. The tax efficiency score can also be leveraged in the investment process of portfolio management, which can be used to find financial products more suitable when it comes from a tax-related cost perspective.
The product itself allows for further workflow automation, as well, particularly asset managers and wealth managers. With this tax data provided on a financial instrument level, clients are better able to meet their requirements for transparency disclosure, all the while providing a framework that recommends investment alternatives that are more tax-efficient.
Plans Of Expansion
As it stands now, this new data offering covers tax-related charges regarding interest and dividend income, capital gains for bonds, equities, structured products, as well as fund distributions. These are all provided under the UK, Swiss, and French tax jurisdictions. Alongside this, SIX is hard at work to expand the scope of tax jurisdictions that SIX Tax Score can provide, aiming for an increasingly global customer base.