Some 94 per cent of firms attending the events said they needed a method to easily access and reconcile historical cost basis with custodial records, Advent said.

The adjusted cost basis information that custodians must report to the Internal Revenue Service is among a number of changed reporting requirements from the IRS that is affecting financial services, including wealth management.

In response to 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 approach.

“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 Advent’s Investment Management Group.