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New York State Department of Financial Services ("NYDFS") Superintendent Linda A. Lacewell proposed regulation designed to streamline the disclosure processes of confidential supervisory information to legal counsel and independent auditors.
Under the proposal, regulated entities would no longer be required to obtain written approval from the NYDFS before sharing confidential supervisory information with either their legal counsels or their auditing service providers. However, in place of obtaining written NYDFS approval, a counselor or auditor would have to agree in writing to:
- keep the information confidential;
- use the disclosed information only as it relates to a regulated entity's legal representation or auditing services; and
- disclose information only to its employees, directors or officers who "need to know," and on the condition that they maintain the confidentiality of the information.
Regulated entities would be required to keep (i) a written record of all the disclosed confidential supervisory information and (ii) a copy of each written agreement.
Comments on the proposal must be submitted by January 26, 2020.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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