Mutual fund fidelity bonds (Rule 17g-1 Fidelity Bond)

This bond was created to provide registered management investment companies and mutual funds with fidelity bond coverage that meets or exceeds the requirements outlined by the Securities and Exchange Commission in SEC Rule 17g-1 of the Investment Company Act of 1940 (17 Code of Federal Regulations § 270.17g-1).

The bond provides coverage that extends beyond that which is normally offered by the Surety Association of America’s Financial Institution Bond No. 14.

Some benefits of the bond are:

• Fax 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 and administrators

Learn More about Fidelity Bonds

Click here to download an Investment Company Bond application.

Click here to download Rule 17g-1.

Call us with your financial insurance questions.

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Contact us at 617.439.9595

Theodore Liftman Insurance, Inc.
CA #0E63480 DBA Liftman Insurance Agency
Liftman Insurance Agency (NY)
Liftman Ins Agency Co (NC)
175 Federal Street, Suite 1230 • Boston, MA • 02110

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