InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
California DBO issues guidance on securities and franchise filings
On March 22, the California Department of Business Oversight issued notice urging securities and franchise filers to submit filings electronically and request waivers of automatic effectiveness for paper filings. The notice also provides that effective immediately the DBO will accept use of e-signature software in lieu of notarization and will waive the additional filing fee for renewals filed after franchise registration has lapsed through June 30.
Arizona Governor exempts essential businesses from shelter-in-place orders
On March 23, the Arizona Governor ordered that local jurisdictions may not prohibit essential functions and must coordinate any orders restricting movement outside the home with the state health department. The order identifies financial institutions as an essential business and operation.
Alaska requires entrants to self-quarantine unless they support critical infrastructure
On March 23, the Alaska Governor ordered all people arriving in Alaska, including residents, workers, and visitors, to self-quarantine for 14 days unless they support critical infrastructure. The “financial services sector” is identified as a critical industry not subject to the quarantine requirement. The order took effect on March 25.
Alabama Securities Commission will conduct exams remotely
On March 23, the Alabama Securities Commission released information about changes to its work practices to respond to Covid-19. Among other things, it noted that audit field examiners are conducting streamlined, remote examinations by phone and email, and its staff will be responsive and receptive to requests for extensions and other regulatory relief.
NYDFS suspends license expiration for individual insurance producers for 60 days
On March 25, the NYDFS suspended the license expiration of all individuals who are licensed insurance producers – brokers, agents, intermediaries and other persons required to be licensed in order to sell, solicit or negotiate insurance in New York – for 60 days. The NYDFS issued the temporary suspension in light of the hardship that individuals may face obtaining the continuing education credits required for license renewals. At the end of this 60-day period, all licenses that would have expired without the extension will automatically expire unless the producer has submitted a license renewal application and completed all necessary continuing education credits.
Connecticut governor extends administrative deadlines during Covid-19 pandemic
On March 25, the governor of Connecticut issued an executive order suspending or extending numerous state administrative deadlines. The order authorized the head of each administrative department, agency board or commission to suspend any statutory or regulatory time requirements or deadlines as they deem necessary to respond to the Covid-19 outbreak.
California governor extends tax, licensing deadlines
On March 25, the governor of California issued an executive order intended to provide relief to small businesses. The order provides businesses filing a return of less than $1 million in taxes with a 90-day extension to file first quarter returns and make tax payments. The order also extended by 60 days deadlines for submitting applications, paying fees, and submitting audited financial reports for a number of business licensees, including card rooms and online payer services. The order also suspends the requirements to request and receive the consent of shareholders for shareholder meetings to be held by electronic transmission or by electronic video screen communication.
West Virginia amends mortgage loan originator definition; adjusts allowable final installment payment on mortgage loans
On March 25, the West Virginia governor signed SB 651, which amends the definition of a mortgage loan originator “with respect to retailers of manufactured or modular homes and their employees” under the West Virginia Safe Mortgage Licensing Act. Among other things, SB 651 states that retailers of manufactured or modular homes (or the retailers’ employees) do not qualify as a mortgage loan originators provided they meet certain criteria, including that they (i) provide written disclosures to consumers of “any corporate affiliation with any mortgage lender” (including “at least one unaffiliated mortgage lender,” if they do have a corporate affiliation); (ii) do not directly negotiate loan terms with consumers or mortgage lenders; and (iii) do not represent that they can perform the activities of a mortgage loan originator. The amendments take effect June 2.
Also on March 25, the governor signed HB 4411, which adjusts the allowable final installment payment on a mortgage loan to be “a lesser amount or no more than $5 greater than any previous payment installment.” This adjustment does not apply to “any mortgage modification or refinancing loan made in participation with and in compliance with the federal Making Homes Affordable program, or any other mortgage modification or refinancing loan eligible under any government sponsored enterprise requirements or funded through any federal or state program or litigation settlement.” The adjustment takes effect May 27.
West Virginia issues stay at home order
On March 23, the West Virginia governor issued a stay at home order requiring non-essential businesses and operations to temporarily cease operations. Essential businesses and operations include financial and insurance institutions, including banks and banking services such as ATM services, currency exchanges, consumer lenders, credit unions, appraisers, title companies, financial markets, trading and futures exchanges, payday lenders, affiliates of financial institutions, professional debt collectors and related creditor service workers, workers engaged in payment clearing and settlement, wholesale funding, and capital markets activities, entities that issue bonds, related financial institutions, institutions selling financial products, insurance companies, underwriters, agents, brokers, and related insurance claims and agency services. Additionally, essential businesses and operations include those businesses that sell, manufacture, or supply other essential businesses and operations with the support of materials necessary to operate. The order becomes effective at 8:00 PM on March 24, 2020, and remains in effect until terminated by subsequent executive order.
Pennsylvania governor and health secretary issue stay at home orders
On March 23, the Pennsylvania Governor and Secretary of Health issued stay at home orders to certain counties. The orders direct residents of certain Pennsylvania counties to stay at home except as needed to access, support, or provide life-sustaining business, emergency, or government services. The governor issued additional guidance indicating that certain businesses engaging in financial activities may continue physical operations. For example, credit intermediation and related activities, insurance carriers and related activities, and certain funds, trusts, and other activities may continue physical operations. However, securities and commodity exchanges and other financial investment activities may not continue physical operations, unless they are considered financial services under the Cybersecurity and Infrastructure Security Agency advisory. The orders took effect at 8:00 PM on March 23, 2020, and will remain effective until April 6, 2020.