Regulatory Alerts2018-03-31
PF Circular 5: Fidelity Guarantee Insurance Requirements
The Financial Institutions Office temporarily waives the mandatory fidelity guarantee insurance requirement against negligence for privately administered pension funds due to prohibitively high premium rates. Funds must instead obtain commercial risk policies, proactively arrange coverage reinstatement after claims, and may temporarily accept employer guarantees for dishonesty losses while setting their own coverage limits. The regulator further mandates that all funds submit an auditor-countersigned statement by 30 June 1963 quantifying losses from negligence and dishonesty or fraud incurred over the previous five years.
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