Sharegain announced the launch of a fully paid lending solution for registered investment advisors (RIAs) aiming to tackle issues related to tax complexity.
In a world of high volatility and diminishing returns, FPL offers private investors a valuable source of passive income. However, tax implications, particularly around in-lieu-dividend payments, have historically hindered RIAs from fully adopting lending programs.
When a security is on loan during a dividend period, the investor may receive a payment-in-lieu, which for US individual residents, can be taxed differently from a standard dividend. Sharegain solution solves this by excluding specific securities from lending programs during dividend periods or recalling them before record dates.
Ben Smith, head of Product at Sharegain, said in a statement that the solution eliminates “the tax risk posed by in-lieu-dividend payments, empowering RIAs to provide their clients a new opportunity to earn passive income, with enhanced functionality and greater peace of mind.”
Reisa Asimovic, CEO of Sharegain US, said in a statement: “RIAs are constantly seeking ways to differentiate their offering and deliver more value to clients. But they also need flexibility and control, not one-size-fits-all solutions. Our offering does just that, enabling advisors to tailor their lending programs to each client’s individual needs.”