AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of C+ (Marginal) and the Long-Term Issuer Credit .
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On April 14, 2021, the New York Department of Financial Services
(DFS) announced it settled an enforcement action
against National Securities Corporation ( National
Securities ) related to claims under the Cybersecurity
Regulation, 23 NYCRR Part 500. The Consent Order imposes a $3 million penalty,
various remediation measures and represents a flurry of
cybersecurity activity by the regulator in the first quarter of
2021. Over the last two months DFS settled two enforcement actions
and issued amended charges against First American, the first charges under the Cybersecurity
Regulation, originally announced less than a year ago.
To: All New York Domestic and Foreign Insurance Companies
Re: Diversity and Corporate Governance
As Superintendent of the New York State Department of Financial Services (DFS), I have consistently stressed the critical importance of diverse perspectives to problem-solving. Research shows that diverse teams perform better, innovate more, and are more effective at managing risks….DFS expects New York-regulated insurers to make the diversity of their leadership a business priority and a key element of their corporate governance….
DFS has evaluated different regulatory approaches to promote DEI in the insurance industry, including the imposition of quotas and the collection and disclosure of diversity data….Based on our research and outreach, we have determined that the best way for DFS to support the insurance industry s DEI efforts is by collecting and publishing data relating to the diversity of corporate boards and management. Data collection is essential to identify a
State Notifications Deemed to Trigger DFS Reporting of Non-material Breaches
Two successive Consent Orders have demonstrated the seriousness of non-compliance with New York’s Department of Financial Services financial regulations. While not surprising given the relatively egregious facts of the two cases, DFS’s unprecedented interpretation of the ‘other’ reporting prong of DFS Part 500.17(a) – any notice to another regulatory authority even if the incident is not material – creates a potential hidden standard for the timing of reporting such incidents.
In March 2021, the New York State Department of Financial Services (“DFS”) entered into a consent order with Residential Mortgage Services (“Residential”), a mortgage loan service company based in Maine, which required Residential to pay a $1.5 million penalty for violating DFS’s cybersecurity regulation, as well as undertake certain remedial measures.
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OCC Greenlights Crypto Co. Paxos Federal Banking Charter
Law360 (April 23, 2021, 8:33 PM EDT) Federal regulators said Friday that Paxos, the first cryptocurrency company to receive a New York banking license, has been preliminarily approved for a national license, positioning the company to make history again as the first in the digital asset space to have dual federal and state banks.
Paxos Trust Company LLC has had a trust charter from New York s Department of Financial Services since 2015, but the company applied with the Office of the Comptroller of the Currency late last year to launch a new national trust bank, Paxos National Trust, based in New York.