industry, hosted a series of events to educate firms on the impact of cost basis legislation and what they can do to prepare now. Over 2,000 investment professionals took part in the events, which have included several live webcasts as well as panel discussions in New York, Boston, San Francisco and Las Vegas.
In response to the upcoming legislation, which will require financial custodians to report adjusted cost basis information to the IRS via Form 1099, Advent conducted market, client and partner research to determine requirements for helping firms that report cost basis to their clients adjust to the new cost basis reporting paradigm. In addition to hosting a series of events, the Company has also provided its clients with ongoing education on the topic, including white papers and third-party research, as well as specific plans around product and data solution enhancements that Advent is currently implementing to help clients manage the changes.
To determine the potential impacts of the new cost basis legislation to investment management firms, Advent conducted a survey of its clients. According to the results:
Almost 75% of firms think the new rules will impact their workflowsincluding reconciliation and reporting; 25% of these respondents expect a significant impact on workflow Potential client service issues are especially worrisome to a majority of firms 94% expressed a need for a method to easily access and reconcile historical cost basis with custodial records
Cost basis legislation is top of mind for our clients, and it is critical for firms to identify the potential impacts of cost basis legislation and start making plans now to prevent breakdowns in efficiency and client service, said Chris Flynn, Vice President of Product Management for Advents Investment Management Group. In addition to making product and workflow updates, we will continue to create and enhance resources for our clients and partners related to cost basis legislation. Advent is pleased to serve as a trusted partner to our clients by providing them with valuable insights and expertise on the topic.
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