This week, the New York State Department of Financial Services (DFS) celebrated the agency’s 15th anniversary. On October 3, 2011, the New York State Banking Department and the New York State Insurance Department merged to become a comprehensive financial regulator and consumer protection agency designed to build equitable, transparent, and resilient financial system that benefits individuals and supports business.
“I am so proud of the incredible work DFS does every day to protect New Yorkers and our financial markets,” said Department of Financial Services Acting Superintendent Kaitlin Asrow. “Today is not a celebration of a state agency; it is a celebration of the thousands of current and former public servants who have worked tirelessly to improve the lives of their fellow New Yorkers.”
DFS oversees more than 3,100 banking, insurance, and other financial institutions with assets totaling nearly $10 trillion. In addition to regulating and supervising financial institutions, DFS works to protect consumers through its consumer assistance and enforcement tools. In just the past five years, DFS has returned more than $765 million to New Yorkers and collected $575 million in penalties.
Among the many achievements since the establishment of DFS, the Department has:
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Implemented the nation’s first cybersecurity regulation for financial services companies, establishing critical protections for businesses and consumers against new and evolving cybersecurity threats and ensuring a stronger, more resilient New York.
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Enacted behavioral health treatment regulations to improve access to mental health and substance use disorder treatment for New Yorkers.
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Adopted new regulations to protect New Yorkers’ access to life-saving prescription drugs, prevent business practices that increase drug costs, and support patients’ choice of pharmacies through licensure and regulation of Pharmacy Benefit Managers operating in the state.
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Created the nation’s first comprehensive regulatory framework for virtual currency to protect consumers, safeguard financial markets, and ensure the safety and soundness of the financial system.
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Launched 60 Banking Development Districts to expand financial access to underserved communities and provide affordable and accessible banking products and services.
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Supported the establishment of the most comprehensive Paid Family Leave program in the nation to ensure that working families do not have to risk economic security to care for their loved ones.
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Adopted small business lending disclosure rules to increase transparency and help business owners better understand and compare the terms of commercial financing offers.
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Enacted comprehensive regulations to reform the practices of mortgage servicers to address abuses that contributed to the 2008 financial crisis.
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Implemented the State’s auto insurance reforms to fight fraud and lower the cost of auto insurance for New Yorkers. The Department also launched an online hub to guide New Yorkers to insurance discounts and savings.
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Protected New York college students by licensing and regulating student loan servicers as part of the borrower protection framework.
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Adopted regulations addressing conflicts of interest for sellers of insurance and annuity products to ensure that recommendations are in customers’ best interest.
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Brought enforcement actions to stop payday lenders from offering illegal, usurious loans in New York.
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Staffed disaster recovery centers and enforced expedited claims processing to protect consumers and cut red tape to assist Hurricane Sandy victims and New Yorkers impacted by natural disasters across the state.
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Became the first state financial regulator to establish a division dedicated to climate change to address risks to the financial system and enhance communities’ resilience.
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Developed AI guidance to set clear expectations of how regulated entities should adapt their frameworks to address AI in cybersecurity, insurance, and virtual currency.
As the Department reflects on these and many other achievements, DFS is focused on the future, continuing to advance groundbreaking initiatives that prioritize affordability, innovation, and stability to protect consumers, strengthen markets, and advance a fairer and forward-looking financial system for all New Yorkers.
