Financial Services Spotlight

Whistleblower Policies

Posted by Roy Andersen on Jan 25, 2019 10:56:17 AM

On January 7, 2019, the New York State Department of Financial Services (the "DFS") issued new guidance on whistleblowing programs ("WP") to all entities regulated by the DFS regardless of industry, size or number of employees—hello representative offices, bit licensees and money services companies.

The DFS defines whistleblowing as:

reporting of information reasonably believed to constitute illegality, fraud, unfair or unethical conduct, mismanagement, abuse of power, unsafe or dangerous activity or other wrongful conduct including conduct that might affect safety, soundness or reputation

Anybody can be a whistleblower including employees (and ex-employees), vendors, outside counsel (!) and customers.

While the DFS recognized that a whistleblower program has to be tailored to the characteristics of the regulated entity; nevertheless, all regulated entities should design and have a WP as an "essential" part of a compliance program. 

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Topics: Whistleblowers, New York State Department of Financial Services, DFS, whistleblowing programs

August 2016 Second Half Developments

Posted by Roy Andersen on Sep 8, 2016 12:00:00 PM


The OCC published a proposed rule dealing with qualified financial contracts and their effect on the U.S. financial system.   The proposal is similar to a rule proposed by the Federal Reserve earlier this year.  In essence, QFCs will be required to contain provisions that restrict acceleration and contain contractual stay provisions.  FinCEN is proposing to expand its requirements for AML programs to banks that are not currently subject to federal supervision.

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Topics: Whistleblowers, OCC, CFTC, Federal Housing Finance Agency, AML Program

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About the Spotlight

The Financial Services Spotlight examines the regulatory and technology developments impacting banks, asset managers and other financial services providers—where challenges meet opportunities.

The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.

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