Another Year, Another Deadline for the Fund Industry

Brokers had a busy 2010 preparing for the new cost-bases reporting rules that took effect in January of this year. Mutual Funds are next up with the IRS and cost-bases reporting slated to hit them square in the compliance expense pocket for 2012.

As Chris Kentouris explains in his article from Securities Technology Monitor, "Buying new software to calculate the correct number for the original cost of a tax lot of shares is just the tip of the iceberg in preparations." Adding, "Mutual funds, which have always relied on average cost accounting, will now be required to give investors the option of deciding which tax lot accounting methodology to use."

Confused? Read the rest of Chris' article here and a follow on article from Tom Steiner-Threlkeld and look for more information and solutions to help through the new regulations over the coming months.

You can read the final regulations brokers are currently working under here.