Cost Basis

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Nov 10, 2009 10:55 pm

Dear Forum Members,

  When your processing an ACAT transfer from one clearing firm to another, are you finding that most of the firms are sending over the cost-basis information along with the account correctly?   Any clearing firms to watch out for that might not do such a good job of transferring cost-basis?   It can completely screw up performance reporting and other items as you know.    Thanks for sharing your feedback on this subject.
Nov 11, 2009 8:51 am

In my experience, most of the majors transfer cost basis info.  But that’s assuming that they had it to begin with.  If the stocks have been held for a long time, and were purchased at another firm, chances are they won’t have the cost basis, so they can’t transfer it.

Nov 12, 2009 5:36 am

Thanks B24 for the post.  Just based on experiences from what Advisors have told me, it appears cost-basis issues are at times difficult with Pershing, LLC., and TDAmeritrade.  I’m not sure why on the TD side but at Pershing, depending on the B/D – I remember the days when either the client or the advisor had to pay Pershing something like $2/account per month in order to maintain cost-basis.  Again, it depends on the B/D contract with Pershing.  NFS/Fidelity I recall does maintain cost-basis but one experience I remember working at a B/D if the Advisor wanted the cost-basis printed on the statement, they had to pay something like 70 cents per account per month to have it printed.  I agree, it seems everyone can maintain it but its more important on what the contract between the B/D and the clearing firm allow or support.