WikiFX report: eToro selects Regnology for tax solution

Regnology has announced a new partnership with online broker eToro. The former RegTech wing of BearingPoint struck out as an independent brand over the last 18 months.

Initially developed as a portfolio of RegTech businesses within consulting firm BearingPoint, a management buyout backed by Nordic Capital enabled saw the company that would become Regnology go it alone in November 2020. One year on, the firm already served more than 7,000 financial services firms with reporting solutions. It had a total workforce of over 770 employees at 17 office locations in 12 countries.

Now, as Regnology looks to build on this early momentum, it has partnered with investment platform eToro. The global social investing network, has chosen Regnology‘s tax reporting solution EasyTax to produce tax reports for its clients. During the implementation phase, teams from Regnology and eToro worked closely together to embed EasyTax into eToro’s infrastructure.

“We are very pleased to work together with an innovative fintech like eToro. With the introduction of EasyTax, eToro makes it easier for its clients to file their taxes. Due to the broad coverage of assets, EasyTax can provide tax reporting for traditional investors, and for investors that focus on newer asset classes such as crypto. We expect that other fintechs and online brokers will follow the same direction and include client tax reporting in their service offering”, states Mathias Wegner, Product Director at Regnology.

The rise of digital brokers like eToro has led to rising demand for tax services previously few people needed. As investing is no longer confined to the professionals or the very wealthy, even more people need help with their tax reporting – something RegTech can play a role in facilitating.

EasyTax is Regnologys standard software solution for producing country-specific tax reports and enables financial institutions to provide clients with a service to ease the burden of their tax filing duties. Based on a development history of 20 years, more than 30 country-specific modules have been built on tax concepts provided by Big Four tax advisors. More than 80 financial institutions worldwide have already selected EasyTax for their client tax reporting. After the successful go-live with UK and Germany in 2021, tax reporting will be deployed for eToro across further countries in 2022.

Tom Spigland, Product Manager at eToro, “At eToro, we constantly try to improve the services we offer to our clients. The collaboration with Regnology and the use of their EasyTax solution allows us to produce high quality and country-specific tax reports for our clients. It was important for us to deploy EasyTax as a cloud solution and to highly automate the processes. In this way, we can efficiently produce high volumes of tax reports on request.”