Cost Basis Reporting - Fund Checklist developed by TAAC

 

[25299]

June 23, 2011

TO: OPERATIONS COMMITTEE No. 23-11
TRANSFER AGENT ADVISORY COMMITTEE No. 51-11
BANK, TRUST AND RECORDKEEPER ADVISORY COMMITTEE No. 38-11
BROKER/DEALER ADVISORY COMMITTEE No. 40-11
BDAC COST BASIS REPORTING TASK FORCE No. 17-11
TAX COMMITTEE No. 39-11 RE: COST BASIS REPORTING - FUND CHECKLIST DEVELOPED BY TAAC

 

The ICI Transfer Agent Advisory Committee (“TAAC”) formed a Cost Basis Reporting (“CBR”) Task Force in 2008 to provide ICI member input on the evolving cost basis reporting regulations and to serve as a forum to discuss operational challenges faced by funds as they work to implement mandatory cost basis reporting by January 1, 2012. The TAAC CBR Task Force recently finalized the attached document, Fund Checklist for Mandatory Cost Basis Reporting Implementation.”

The Fund Checklist document provides a list of implementation steps for mutual funds to consider as they prepare for mandatory cost basis reporting. The areas covered in the document are fund policies, vendor oversight, intermediary support, shareholder support, shareholder communications and employee training. The document is also available online on the Cost Basis Reporting Member Resource page that can be accessed from the Committee pages of the ICI website or by using this link http://www.ici.org/policy/tax/cost_basis_reporting.

The Fund Checklist for Cost Basis Reporting document is intended to serve as a resource for ICI members but is not a list of requirements or rules. This document may not include all topics that an individual fund should consider when implementing mandatory cost basis reporting. Further, this document does not provide any legal advice regarding the requirements or proper interpretation of the cost basis reporting rules. Each fund should make its own business decisions regarding implementation and communication strategies, and funds may wish to consult their counsel as part of such strategies.

I’m sure you will join me in thanking the TAAC CBR Task Force for developing this wonderful resource for ICI members. Questions or comments on the Fund Checklist for Cost Basis Reporting document may be directed to me at butler@ici.org or 202-326-5850.

 

Diane M. Butler
Director – Transfer Agency
International Operations

Attachment