Sharegain launches RIA lending solution
29 May 2025 US
Image: WrightStudio/stock.adobe.com
Sharegain has launched its intelligent fully paid lending (iFPL) solution for registered investment advisors (RIAs), in a move that it says will help eliminate tax complexity.
The solution excludes specific securities from lending programmes during dividend periods or recalls them before record dates, helping to avoid the tax implications surrounding in-lieu dividend payments.
For US individual residents, these payments are taxed differently than a standard dividend, and these tax complications, suggests Sharegain, have historically hindered RIAs from fully adopting lending programmes.
Ben Smith, head of Product at Sharegain, said: “FPL can be a powerful income opportunity for private investors, but tax implications have historically been a roadblock for RIAs.
“iFPL changes the game by eliminating 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.”
The solution excludes specific securities from lending programmes during dividend periods or recalls them before record dates, helping to avoid the tax implications surrounding in-lieu dividend payments.
For US individual residents, these payments are taxed differently than a standard dividend, and these tax complications, suggests Sharegain, have historically hindered RIAs from fully adopting lending programmes.
Ben Smith, head of Product at Sharegain, said: “FPL can be a powerful income opportunity for private investors, but tax implications have historically been a roadblock for RIAs.
“iFPL changes the game by eliminating 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.”
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