Monday, March 5, 2018

Do you have licensed insurance agents in New York?

Failure to File Certification of Compliance

On March 3rd, 2018, a notification was sent to those individuals who are licensed with the New York State Department of Financial Services ("DFS"). The DFS is the regulatory body that supervises banks, mortgage originators, and insurance companies/agents, among others. However, the DFS does not supervise registered investment advisors or broker-dealers.

Therefore, if you received the notification of “Failure to File Certification of Compliance”, it is most likely because you or a member of your firm are insurance licensed in New York.

The vast majority of the recipients of the Failure to File Certification of Compliance are licensed insurance agents. As a licensed insurance agent in New York, you are subject to the regulations of the DFS. The notification was a reminder to complete the online DFS certification of compliance to their cybersecurity regulations.

We suggest that you review the implemented cybersecurity rules provided by DFS (LINK). This rule does provide a number of exemptions, where you would not be subject to the full scope of the rule (See Section 500.19 Exemptions). However, you will still be required to certify to the state of New York whether you are in full adherence to the rule or you rely on the exemption, by filing through the DFS portal (LINK).

Lastly, we suggest that you reach out to your insurance affiliates and their compliance departments to discuss the details of the DFS cybersecurity rules. They may be able to provide further assistance and guidance to this rule and how it applies to your insurance business.

AdvisorAssist Team


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