Attorneys as Third Party Vendors (2019)

NYS Department of Financial Services | Cybersecurity Procedures 

Government bank regulators can't regulate attorneys. Neither can the Appellate Division regulate banks. However, what is sauce for the goose is sauce for the gander. Just like the Appellate Division prohibits attorneys from keeping escrow accounts at banks that do not agree to its bounced check rule, the New York State Department of Financial Services indirectly regulates attorneys by prohibiting anyone with a license or charter from DFS from doing business with a third-party service provider who does not adopt appropriate cybersecurity procedures.

In this presentation, you will learn about the DFS rule that forces banks, insurance companies, mortgage bankers, insurance brokers, and anyone else with a DFS license or charter to only do business with third-party service providers that have procedures to protect against inadvertent or wrongful access to the regulated entity's protected information. If you or your firm do any work for clients in the insurance, banking or consumer lending industry, from closing or foreclosing residential mortgages to defending slip and fall cases for insured property owners, and anything in between, you need to know about these rules. You do not want to be caught short when your client engages in the regulatory required due diligence.

Speaker:

Jay L. Hack, Esq. | Gallet Dreyer & Berkey, LLP