Recent developments about the New York State Department of Financial Services
(Not affiliated with NYDFS; just a blog.)
Superintendent Harris has been busy on her way out the door: – In addition to issuing several pieces of guidance in the past few weeks, she announced Consent Orders with 8 insurance firms and brokers resolving an investigation involving attacks on agent and consumer portals that allegedly exposed consumer information. According to the DFS press … Read more
NYDFS issued guidance for regulated banking institutions concerning their approach to risks associated with cryptocurrency businesses that may be bank customers or that interact with bank customers · The guidance sensibly responds to the more permissive regulatory environment for cryptocurrency filtering down from the Trump Administration’s major policy shifts · The guidance principally relates to the use … Read more
NYDFS Superintendent Adrienne A. Harris participated in a fireside chat with the Institute of International Bankers and gave the following updates (summarized): • Impact of Change in Federal Administration: Superintendent Harris said that the change in administration at the CFPB and elsewhere would not alter DFS’ course; that there were gaps in consumer protection even before the … Read more
Superintendent Harris testified before NYS legislature and DFS issued its Regulatory Agenda. Per testimony: Looking Back: • “Since August 2021, DFS has adopted or amended 54 regulations, issued 98 pieces of regulatory guidance, and closed 117 enforcement actions resulting in more than $418 million in penalties.” •“We have addressed more than 157,000 consumer complaints and returned $$645 million to New York State consumers and health care providers, including over … Read more
• NYDFS issued an Industry Letter and consumer bulletin that warns licensees and consumers to exercise caution regarding meme coins. According to the Industry Letter: • “The New York State Department of Financial Services (“Department”) is closely monitoring the rapid proliferation of sentiment-based virtual currencies. The platforms that enable the creation of these coins are not licensed … Read more
• According to NYDFS, this is the second annual report, reviewing lending activity based on the New York Home Mortgage Disclosure Act (“HMDA”) data from 2023. • As in last year’s report, NYDFS analyzed mortgage lending in 23 different geographies, including New York State as a whole, all metropolitan statistical areas (“MSAs”) within the state, and a … Read more
Speaking this week at DACOM 2024, Superintendent Harris stated: • The Superintendent does not contemplate any amendments to the BitLicense, even though the regulatory regime will be in effect for 10 years coming June. • She said the BitLicense framework will continue to evolve instead through guidance, enforcement and other supervisory activity. She pointed to the agency’s … Read more
• According to the agency, “DFS has finalized the guidance with careful consideration of the valuable feedback received from regulated entities and other key stakeholders, including trade associations, advisory firms, universities, and the broader public.” • Superintendent Adrienne Harris has said recently, in several public settings (including the IIB Conference in March), that guidance for banks is … Read more
NYDFS has issued guidance concerning how Virtual Currency Entities handle customer complaints. According to the guidance: • The guidance applies to all “Virtual Currency Entities” (“VCEs”) • The guidance applies to individual customers – not institutions • The guidance requires VCEs to collect relevant data so DFS can assess whether they are resolving customer service requests and complaints … Read more
NYDFS took action against another insurance firm. According to the DFS allegations: • The benefits of blanket accident and health insurance policies issued to groups including institutions of higher education, day camps and childcare providers were found not bear a reasonable relationship to the premiums paid by these insureds. • The minimum loss ratios maintained by National … Read more