DFS Announces Temporary Regulatory Relief for New York-Chartered Financial Institutions During Covid-19 Pandemic
April 16, 2020
DFS ANNOUNCES TEMPORARY REGULATORY RELIEF FOR NEW YORK-CHARTERED FINANCIAL INSTITUTIONS DURING COVID-19 PANDEMIC
The New York State Department of Financial Services (DFS) today announced that it has published an Order to provide temporary regulatory relief for New York-chartered financial institutions. This action represents the continuation of DFS’ efforts to provide relief from statutory and administrative regulatory requirements as the COVID-19 pandemic presents unforeseen challenges in complying with certain obligations under New York Banking Law and New York Financial Services Law.
The order facilitates the ability of New York’s financial institutions to conduct meetings virtually and extends the timing requirement for annual stockholder meetings.
“A majority of regulated entities have transitioned to teleworking and virtual meetings during this pandemic to flatten the curve,” said Superintendent Linda A. Lacewell. “Today’s Order is part of a continued effort to provide relief to our regulated institutions so they can continue their operations with minimal disruption.”
The Department Order provides two forms of temporary relief in light of the pandemic:
- During the disaster emergency and for 60 days thereafter, New York-chartered financial institutions may conduct required meetings virtually -- conference call, video conference, or similar electronic means -- provided that all individuals can hear each other at the same time; and
- Extending the timing requirement for annual stockholder meetings applicable to certain institutions -- rather than a meeting being required to be held within 4 months of the beginning of an institutions’ fiscal year end, the institution will have 7 months if the prior deadline for the stockholder meeting occurs during the disaster emergency.
DFS will continue to consider regulatory relief, as appropriate and needed, for regulated institutions impacted by COVID-19. The Department encourages regulated institutions to communicate and pose questions to their designated or regular DFS points of contact.
The Order shall remain in effect until suspended or terminated by DFS.
Read a copy of the Department Order.