This bond was created in order to provide Registered Management Investment Companies/Mutual Funds with Fidelity Bond coverage which meets or exceeds the requirements outlined by the Securities and Exchange Commission in S.E.C. Rule 17g-1 of the Investment Company Act of 1940 (17 Code of Federal Regulations § 270.17g-1).
The bond provides coverage which extends beyond that which is normally offered by the Surety Association of America's Financial Institution Bond No. 14. Some benefits of the bond which are not found in the Form 14 are:
- Telefacsimile Transmission Coverage
- Uncollectible Items of Deposit Coverage
- Unauthorized Signatures Coverage
- Automated Phone Systems Coverage
- 90 day cancellation
- Stop Payment Legal Liability Coverage
- Audit Expense
- Computer Systems Coverage with Voice Initiated Transfer
- Optional 12 month discovery period in the event of termination or cancellation
- Each and Every Loss Limit of Liability(as opposed to aggregate)
- Definition of employee is extended to include Outside Servicers such as:
Investment Advisors, Underwriter (Distributor), Stock Transfer Agents, Administrators
Click here to download an Investment Company Bond Application.
Click here to download Rule 17g-1.