NYDFS DRAMATICALLY TRIMS GREENLISTED COINS AND ISSUES PROPOSED GUIDANCE ON REVISED COIN LISTING POLICY

In conjunction with its proposed guidance, DFS has significantly trimmed “Greenlisted” coins. It has cut the list to Bitcoin, Ethereum, and several stablecoins. Until recently it had Greenlisted approximately two dozen coins. These changes are part of the Department’s initiative seeking to strengthen DFS oversight of virtual currencies, which include new guidance coin listing and … Read more

NYDFS FINES FOUR MORE INSURANCE COMPANIES IN ONGOING MARKET SWEEP INVESTIGATION

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

NYDFS INTEGRAL TO NY STATE NEW CYBERSECURITY STRATEGY

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

NYDFS $1.35 MILLION CYBERSECURITY ENFORCEMENT ACTION AGAINST WEALTH MANAGER SA STONE

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 FINES GEICO $910,000 FOR FAILING TO REPORT UNINSURED MOTORIST INFORMATION

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

SENATE PASSES BILL TO ENHANCE NYDFS ENFORCEMENT POWERS AGAINST UNLICENSED ACTIVITY

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

NYAG ISSUES $4.25 MILLION FINE IN CYBERSECURITY ACTION AGAINST LENDER ONEMAIN

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