BY FAX
February 6, 1991
TO: TRANSFER AGENT ADVISORY COMMITTEE NO. 4-91
RE: POSSIBLE LEGISLATION ON SHAREHOLDER BASIS REPORTING
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As you may know, a "simplification" proposal was advanced
last year to require investment companies to provide cost basis
information to shareholders. The Institute studied the proposal
and concluded that substantial problems would exist if such
information was to be provided with respect to outstanding
shares. However, fewer problems would arise if such a proposal
were applied only to those accounts opened after a future date.
The Institute intends to meet with Congressional staff to
discuss their plans for the possible inclusion of a shareholder
basis proposal in any tax bill addressing "simplification"
issues. So that we may accurately assess the industry’s ability
to comply with any shareholder basis reporting proposal, we would
appreciate your fax response to the attached survey by Friday,
February 8th to Don O’Connor (Fax 202-293-1058).
Keith D. Lawson
Associate General Counsel
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