Find an arbitrage rebate calculation firm that doesn’t make mistakes.
Arbitrage rebate calculation is a process by which a business or individual must figure out what their arbitrage was for the year so that they can claim it on their taxes and remain compliant. Most people don’t know much about arbitrage, and since it’s a complicated process they generally choose to hire an outside firm to handle it for them. In case you’re curious, arbitrage is the money that a firm or individual makes by taking the profits from tax-advantaged and low-yielding bonds, and then turning around and investing that money into securities for an even greater profit. The reason the government regulates arbitrage so heavily is because the securities that people are investing in are higher-risk. Thus, people are taking money from bonds that are tax-advantaged and then putting that money at higher risk of being lost by investing it into securities. Therefore, the federal government looks to create arbitrage compliance rules and regulations that try to dissuade people from making this kind of investment or engaging in this kind of financial activity because they don’t want people gaming the system.
If you happen to earn some money off of arbitrage, then you have to make sure that you’re compliant with all of the laws and regulations surrounding that money. If you’re not then you put yourself and/or your firm at risk of legal action by the federal government, which could result in you having to pay hefty fines on that profit. Due to the complexity surrounding arbitrage calculation and the severity of the regulations in terms of its compliance, most individuals and firms look to hire an outside firm that specializes in the issue.
There are lots of things that you should be looking for in such a firm, such as professionalism, a commitment and attention to details, a strong track record of success, and a vast amount of experience. All of these things are important. However, nothing is more important than finding a firm that doesn’t make mistakes. Why is this so critical? It all has to do with the severity of not being compliant. If you turn over the details of the money you’ve made from arbitrage to the federal government and your filings aren’t accurate or correct, then the size of fines you’ll be paying are substantial. It will also likely trigger further audits from the federal government, complicating your ability to remain compliant down the road. Thus, you need to make sure that the firm you hire is going to get everything right on their first try. You simply can’t afford to have errors when it comes to your arbitrage rebate calculation.
Arbitrage Compliance Specialists, a firm that’s been practicing since 1986, is one example of a firm that simply doesn’t make mistakes. Ever. Since their inception they’ve worked with thousands of clients, and during that time they’ve never made a mistake in terms of arbitrage compliance. If you want your arbitrage calculated right on the first try, then they’re the firm that you want to hire.