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New York city is home to numerous trading brokerages, stock exchanges, and a massive number of investment firms and financial services. Therefore, the State of New York is the financial hub of the United States. With the sheer number of financial services here, the State requires their own financial regulation in addition to federal regulation and other regulatory entities. The regulatory authority governing a wide variety of financial related services in the State of New York is the New York State Department of Financial Services (DFS or NYSDFS).
show moreThe NYDFS was established in 2011 and was created by transferring the duties of the New York State Banking Department and the New York State Insurance Department into one single department now known as the State of New York is the New York State Department of Financial Services (DFS or NYSDFS). The mission of this regulatory agency is to reform the regulations surrounding financial services in New York to stay relevant with the evolution of this ever changing industry. As well, in reforming regulations, the NYDFS will protect consumers from a financial crisis and fraudulent actors operating in the markets.
This regulatory agency has numerous important responsibilities set in place to protect the financial integrity of the markets and the traders and consumers involved. See the NYDFS’s main responsibilities laid out in the points below.
Help the financial industry in New York grow and prosper by imposing regulations and supervising entities operating in the financial industry.
Ensure a safe, fair, and transparent financial environment.
Protect the public from insolvent firms and incompetent practices.
Eliminate financial fraud and malpractices, including criminal activity and unethical conduct in the financial industry.
Educate and inform people on various financial products and services so that they can make responsible decisions.
The NYDFS does everything in their power to protect consumers against fraudulent practices in the financial industry. As well, they provide extensive amounts of educational resources and warnings of fraudulent brokers and things to look out for, to consumers. They also protect consumers by taking complaints and conducting investigations on suspicious financial practices. As well, the NYDFS monitors and supervises the activities of the businesses and services under their regulation.
The trading brokers governed by the NYDFS must follow a strict set of guidelines to competently offer their financial services under NYDFS regulation. Also, financial services operating in the State of New York are required by law to be governed by the NYDFS and thus must adhere to the guidelines imposed by them. The most important guidelines are standard among other regulatory guidelines and include periodic reporting of financial services, holding client funds in segregated accounts, and third party audits of the companies finances.
