Recent developments about the New York State Department of Financial Services
(Not affiliated with NYDFS; just a blog.)
Matthew L. Levine 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
According to Bloomberg: “New York’s top financial industry regulator is trying to expand bank examiner staffing, but relatively low pay and federal agencies’ competition for skilled labor are posing stiff challenges. The New York Department of Financial Services has faced ‘internal staffing restraints’ that hinder adequate staffing of examination teams, the DFS said in an … Read more
FROM NYDFS SUPERINTENDENT HARRIS’ PREPARED TESTIMONY BEFORE US SENATE BANKING COMMITTEE ON DFS REFORMS FOLLOWING BANKING CRISIS: “DFS has been monitoring the liquidity of [high risk] institutions on a daily basis, which entails frequent engagements with these institutions, as well as close coordination with our federal counterparts. . . . I directed DFS’s Office of … Read more
NYDFS settled with several insurers that offer student health plans, alleging a number of violations. According to the DFS allegations across the four consent orders: • DFS found that four insurers – 4 Ever Life Insurance Co., Aetna Life Insurance Co., United Healthcare Insurance Co., and Wellfleet NY Insurance Co. — charged unapproved premium rates to … Read more
More from Fortune on the proposed legislation from the NYAG and an apparent rift with NYDFS. But what does this mean for passage/enactment? From the Forbes article: “Another point of contention has turned on the extent to which DFS was consulted in the drafting of the bill. Among the endorsements for the legislation in the … Read more
Advancing a key agenda item from the the last several administrations, DFS has published aggregate gender and racial/ethnic data of board members and senior management for regulated banks, non-depository institutions, and insurance companies. According to DFS, it collected the data from insurance companies with more than $100 million in 2019 New York premiums, regulated banks … Read more