Bill > A03459

This bill amends the financial services law by modifying the language related to civil penalties for fraud or misrepresentation in financial products or services. Specifically, the bill removes the word "intentional" before "fraud" and "misrepresentation" and replaces it with "negligent," which broadens the scope of potential penalties. This change means that financial service providers can now be subject to civil penalties not just for deliberate fraudulent actions, but also for misrepresentations that occur through negligence or carelessness. By lowering the standard from intentional fraud to negligent misrepresentation, the bill makes it easier to hold financial service providers accountable for misleading or inaccurate information about financial products or services. The amendment suggests a more stringent approach to protecting consumers by expanding the circumstances under which a financial service provider can be penalized for misrepresentation.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A3459