This document is about an evaluation by the Advisory Council on Employee Welfare and Pension Benefit Plans on the effectiveness of the Department of Labor's regulations and sub-regulatory guidance under Section 412 of ERISA, which requires employee benefit plans to purchase a fidelity bond to protect against losses due to acts of fraud or dishonesty. The Council developed recommendations for updating the regulatory and sub-regulatory guidance to improve compliance with the fidelity bond requirements and enhance the safeguarding of plan funds and property.