ALBANY, N.Y.—The New York State Department of Financial Services (DFS) announced 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, according to Mondo Visione, a company that provides news, data and intelligence about the exchanges sector.
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.”
Two Forms of Relief
Mondo Visione reported 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
- Extending the timing requirement for annual stockholder meetings applicable to certain institutions – rather than a meeting being required to be held within four months of the beginning of an institutions’ fiscal year end, the institution will have seven months if the prior deadline for the stockholder meeting occurs during the disaster emergency
The DFS said it will continue to consider regulatory relief, as appropriate and needed, for regulated institutions impacted by COVID-19. The Department encouraged regulated institutions to communicate and pose questions to their designated or regular DFS points of contact, noting the order remains in effect until suspended or terminated by the DFS.