According to the DFS allegations in the Four Consent Orders (found here): • Following a market conduct investigation in 2018, DFS has continued to penalize insurance companies for failing to timely report certain insured vehicle information to the NY DMV • DFS fined Allstate Insurance group $796,000; Farmers Insurance Group $764,000; Tokio Marine Insurance Group $720,000; and … Read more
According to the strategy released by New York governor Kathy Hochul: “Financial Sector[:] In 2017, the New York State Department of Financial Services (DFS) became the first banking or insurance regulator in the nation to establish a cybersecurity division to protect consumers and industries from cyber threats. DFS also created first-in-the-nation requirements for DFS-regulated banks, … Read more
Harriet Pearson has been appointed Executive Deputy Superintendent for Cybersecurity by Superintendent Adrienne A. Harris, following the departure of Justin Herring. Announcement here.
NYDFS entered into a Consent Order for alleged cybersecurity violations against wealth management firm SA Stone, which sells insurance products to customers. According to DFS allegations: • SA Stone is an independent broker/dealer focusing on wealth management, holding licenses to sell insurance to its customers in New York. • SA Stone experienced several reportable cybersecurity breaches arising … Read more
NYDFS has published in the State Register its revised proposed second amendment to Part 500, the Cybersecurity Regulation. Some changes have been made based on comments received on the prior draft. It is a dense document, as is the Assessment of Comments. More to come.
According to the Consent Order’s allegations, and takeaways: • NYS DMV’s Insurance Information & Enforcement System (“IIES”) enables law enforcement to know whether vehicles on the road lack insurance. • As a public safety matter, injured motorists rely on the benefit of statutorily-required auto insurance. • Insured vehicle information provided by insurers to DMV is used to identify, … Read more
The New York State Senate passed legislation that will enhance NYDFS enforcement powers against unlicensed activity in the State. Takeaways: • While there has been some argument over the powers of NYDFS to go after unlicensed financial services activity in the state, new legislation passed by the Senate and pending in the Assembly clarifies that it … Read more
NYDFS Superintendent Adrienne A. Harris testified today before the New York State Senate standing committee on Banks concerning DFS supervision and other issues. The testimony may be found here.
NYDFS continues to roll out enforcement actions for cybersecurity lapses. The latest is with lender OneMain. According to NYDFS allegations in its Consent Order: • This is the second cybersecurity enforcement action to arise from a routine examination, instead of a Cybersecurity Event. • Meaning, as noted before, these enforcement actions are now routine. • Third Party Risk … Read more
The New York Attorney General entered into a settlement with BitCoin seller and NYDFS licensee Coin Cafe over allegations of failure to register with the NYAG’s Investor Protection Bureau and charging excessive fees. According to NYAG allegations in its Assurance of Discontinuance: • Coin Café — apparently only a seller of only Bitcoin – nonetheless failed … Read more