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Description of problem:
Likely this is a selinux issue, but first filing against fence-virt in case I
missed something obvious. This is my /etc/fence_virt.conf:
ence_virtd {
        listener = "multicast";
        backend = "libvirt";
}

listeners {
        multicast {
                key_file = "/etc/cluster/fence_xvm.key";
                address = "225.0.0.12";
                interface = "br-ctlplane";
        }
}

backends {
        libvirt { 
                uri = "qemu+ssh://root.122.1/system";
        }
}

Even with the following selinux booleans set to on:
setsebool -P fenced_can_ssh=on fenced_can_network_connect=on

I get the following AVC:
type=AVC msg=audit(1443550953.402:47395): avc:  denied  { setcap } for  pid=31310 comm=fence_virtd" scontext=system_u:system_r:fenced_t:s0 tcontext=system_u:system_r:fenced_t:s0 tclass=process

If I start fence_virtd via root or if I disable selinux it works correctly.

Version-Release number of selected component (if applicable):
fence-virt-0.3.2-1.el7.src.rpm
selinux-policy-targeted-3.13.1-23.el7_1.18.noarch

Feel free to reassign to selinux-policy if you agree with the analysis

How reproducible:
100%

Re-assigning this to selinux-policy since we're getting an avc denial when we're attempting to do normal fencing operations.

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory, and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

https://rhn.redhat.com/errata/RHBA-2016-2283.html