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October 19, 2010
TO: OPERATIONS COMMITTEE No. 31-10TRANSFER AGENT ADVISORY COMMITTEE No. 64-10
BROKER/DEALER ADVISORY COMMITTEE No. 45-10
BANK, TRUST AND RECORDKEEPER ADVISORY COMMITTEE No. 38-10 RE: TAAC COST BASIS REPORTING SURVEY RESULTS
The Transfer Agent Advisory Committee established a task force, chaired by Charles Hawkins of BNY Mellon to focus on operations and shareholder servicing challenges faced by mutual fund organizations as they work to implement mandatory cost basis reporting (“CBR”). The task force developed a survey to gather information from fund companies’ on certain aspects of their preparations for implementing cost basis reporting for mutual fund shareholders effective January 1, 2012.
Forty one fund company members of the TAAC responded to the survey in July 2010, prior to the issuance of final CBR rules. The survey included questions on fund default methodologies for cost basis reporting, voluntary cost basis reporting for noncovered shares, employee training for cost basis reporting, and shareholder communications on cost basis reporting. The survey results are attached for your review.
The ICI solicited data from member complexes for informational purposes only. All survey responses were aggregated and no individual complex data are presented or discussed in the report. The aggregate survey results will be discussed at future ICI Committee meetings. Institute members should act independently in making any decisions based on the results of the survey.
The CBR Survey report is the proprietary and confidential property of the Investment Company Institute (“ICI”). The report may be shared with your firm’s employees and agents (if the agent is under a nondisclosure agreement), so long as the survey results are not disclosed, published, or otherwise shared with any other person without the prior written authorization of the ICI.
We would like to extend our thanks to Charles Hawkins and the other TAAC members who continue to participate on the CBR Task Force. We would also like to thank those fund company representatives that completed the survey.
If you have any questions or comments, please contact the undersigned at 202-326-5850 or at butler@ici.org.
Diane M. Butler
Director - Transfer Agency & International Operations