Navigating NY DFS Part 500: Covered Entities and Exemptions

The first step in determining if NY DFS Part 500 applies to a given organization is determining if it is a covered entity under 23 NYCRR § 500.01(c). A covered entity is (1) any person, meaning any individual or any non-governmental entity, including but not limited to partnerships, corporations, branches, agencies, associations, etc., (2) operating under, or required to operate under, a license, registration, charter, certificate, permit, accreditation, or similar authorization, under the Banking Law, Insurance Law, or Financial Services Law. See 23 NYCRR §§ 500.01(c), (i). More simply, if an organization (broadly defined) operates, or should operate, under Banking, Insurance, or Financial Services Law, that organization is a covered entity for the purposes of 23 NYCRR §§ 500.01(c).

Navigating NY DFS Part 500

The requirements set forth by NY DFS 500 have varying dates by which they are required to be complied with by covered entities (a discussion of covered entities and exemptions can be found here). This information can be found in 23 NYCRR § 500.22, where it is referred to as Transitional Periods. These dates can also be found on the New York Department of Financial Services’ website, found here. Finally, there is a published list of frequently asked questions by the Department, found here…