Provides that persons engaged in activity for which a license or other authorization from the superintendent of financial services is required under the banking law or financial services law will be subject to a civil penalty.
Impact
The bill will have significant implications for state laws as it enforces stricter regulations around unlicensed financial activities. Previously, individuals who engaged in such activities without the necessary licenses faced no civil monetary penalties, even if the acts would have been subject to penalties if licensed. A08804 aims to eliminate this loophole, thus reinforcing the legal framework that governs financial services in New York. This legal adjustment is expected to enhance the state's consumer protection measures against fraud and unregulated business practices in the financial sector.
Summary
Bill A08804 aims to amend the financial services law concerning prohibited unlicensed activities. The primary objective is to impose civil penalties on individuals engaged in activities that require licensing or authorization from the superintendent of financial services, regardless of their actual licensing status. This change emphasizes the importance of ensuring compliance with state financial regulations, primarily to protect consumers from potential harm resulting from unlicensed financial activities. The essence of the bill is to deter irresponsible practices in the financial marketplace, which could endanger users of financial products and services.
Contention
There may be points of contention regarding the bill, particularly about the enforcement of penalties on individuals who may find themselves unintentionally engaging in unlicensed activities. Critics may argue this could disproportionately affect small businesses or individuals who lack access to legal resources to navigate the licensing requirements. On the other hand, proponents of the bill emphasize the necessity of protecting consumers while ensuring that all entities involved in financial services adhere to proper regulations without exception. The debate may center on finding a balance between regulatory enforcement and support for legitimate small businesses.
Same As
Provides that persons engaged in activity for which a license or other authorization from the superintendent of financial services is required under the banking law or financial services law will be subject to a civil penalty.
Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
Relates to the reporting of suspected financial exploitation; requires the superintendent of the department of financial services to develop guidelines relating to reporting suspected financial exploitation; provides that a third party who reports suspected financial abuse shall have immunity from any civil or criminal liability as a result.
Relates to the reporting of suspected financial exploitation; requires the superintendent of the department of financial services to develop guidelines relating to reporting suspected financial exploitation; provides that a third party who reports suspected financial abuse shall have immunity from any civil or criminal liability as a result.
Grants the department of financial services jurisdiction over the financing of motor vehicles; requires motor vehicle dealer finance managers to be licensed by the department of financial services.
Grants the department of financial services jurisdiction over the financing of motor vehicles; requires motor vehicle dealer finance managers to be licensed by the department of financial services.
Requires all motor vehicle insurers to file annual detailed financial and claim data statements with the superintendent of financial services; provides that all such statements shall be made available to the public.
Authorizes the superintendent of financial services to hire a consultant to assist with reviewing any rate or form filing submitted to the superintendent.
Authorizes the superintendent of financial services to hire a consultant to assist with reviewing any rate or form filing submitted to the superintendent.
Exempts minority depository institutions which are subject to the Community Reinvestment Act of 1977 from report and document filing requirements with the superintendent of financial services for a period of ten years from commencement of business.
Allows the department of financial services to have additional oversight of banks and insurance companies that are not currently licensed in this state; provides penalties for violations.
Provides that persons engaged in activity for which a license or other authorization from the superintendent of financial services is required under the banking law or financial services law will be subject to a civil penalty.