Bill > S03789

This bill amends the financial services law by modifying the language around 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 effectively lowers the legal standard for imposing penalties. This means that financial service providers can now be subject to civil penalties not just for deliberately misleading actions, but also for misrepresentations that occur through carelessness or lack of due diligence. By broadening the scope of what constitutes a punishable offense, the bill aims to increase accountability in the financial services sector and provide stronger consumer protections by making it easier to take legal action against companies that make misleading statements about their products or services, even if those statements were not made with explicit intent to deceive.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S3789