Bill > A01222

This bill enhances the Department of Financial Services' oversight of banks and insurance companies that operate without proper state licensing, addressing a current legal gap where unlicensed entities faced limited penalties. Specifically, the bill introduces a new section defining "prohibited unlicensed acts" as either conducting financial activities without required state licensing or performing actions that would constitute violations if the entity were licensed. The legislation establishes a comprehensive penalty framework for such unlicensed activities, with penalties varying based on the specific type of financial service and law violated. Penalties can range from standard fines to potentially doubled amounts if the unlicensed activity results in consumer harm. The bill also empowers the superintendent to not only impose financial penalties but also issue restitution orders for unlicensed acts. Additionally, the bill modifies existing legal provisions to ensure that the superintendent can investigate potential violations, conduct hearings, and report serious infractions to appropriate authorities like district attorneys and the attorney general. The underlying intent is to protect consumers by creating stronger deterrents and oversight mechanisms for financial entities operating outside of proper regulatory frameworks.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A1222