PF Circular 53: Fidelity Guarantee Insurance Requirements for Pension Funds

FIYANCIAL I~~STII'TTTiOYSOFPIC?
Prlvate Bag X23b

PEETOBIP.

0001

3 Aeotember 1982

CIRCULAR P,F. >?

(To ali self-admxnistered pension' fund,? )

FIDELITY GTJARILNT.3T IhTSTJRP.NC%

1. This Office advised pension funds in CircularsNos. P.F.3
   and P.F. 5 datsd December 1961 an3 July 1?62, respectively, that fidelity gua.ra.rtee insurance cover equal to 5$of a pension fund's total assets, with a maximum of R100 000, should be sufficient for the purposes set forth in the circulars.
2. Inquiries have now revealed that in the case of certain
   . . pension funds a msxinum insurance cover of R130 030 could be

inadequate. The purpose of this circular is to request

every pension fund to revise the FundPs fidelity guarantee

insurance cover in consultation with its auditor and to

furnish this Offlce as soon as possible with a statement

by the auditor indicating whether the Fund's fidelity

guzrantee insurance.cover is in his opinion adequate. Such

a statement should please in future be submitted to this

Office every year together with every pension fund's annual

financial statements.

3. A copy of this circular is enclosed - for the Fund's . .
   auditor.' ~indly have the attached acknor~ledgement form signed also by .the auditor before returning it to this Office. ' . REGISTRAR OF PENSION FUNDS

/LTS