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
Should S08408 be enacted, it will amend existing financial services laws to hold unlicensed individuals accountable, subjecting them to substantial civil penalties for specific violations. The bill aims to equalize the consequences faced by licensed versus unlicensed service providers, thereby reinforcing the importance of adhering to regulatory standards in the financial industry. This change is anticipated to safeguard consumers from engaging with unscrupulous businesses that may operate outside the bounds of the law.
Summary
Bill S08408 aims to enhance consumer protection within the financial services sector by imposing civil penalties for unlicensed activities. The legislation defines 'prohibited unlicensed acts' as engaging in financial services activities that require a license or authorization but are performed without such approval. This initiative seeks to deter individuals and organizations from operating illegally, thereby ensuring a more compliant financial marketplace.
Contention
Notably, there may be contention surrounding the implementation of this bill regarding the balance between regulation and business operations. Critics may argue that imposing strict penalties could unintentionally hinder small businesses and entrepreneurs who operate in a gray area of licensing due to the complexity of financial regulations. Supporters, on the other hand, contend that the heightened accountability will protect consumers and foster a healthier financial services environment.
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.