Regulatory Alerts2018-03-31
PF Circular 8: Judgment Regarding Fidelity Cover
The Registrar of Pension Funds issued this circular to require privately administered pension funds to consult their insurers regarding fidelity coverage following a critical court judgment. The ruling establishes that a principal entity remains liable and its insurance contract voidable if an agent fraudulently conceals material facts, regardless of the principal's direct knowledge. Funds must therefore verify that their fidelity policies remain enforceable and are not subject to voidability on these grounds.
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