New York’s DFS Stresses the Need For Diversity In Corporate Governance

July 30, 2021 at 9:10 am Leave a comment

New York’s Department of Financial Services released an Industry Letter yesterday stressing that the Department expects both depository and non-depository institutions to take concrete steps to increase diversity within their governance structures.  The guidance applies to state chartered banks and to state-licensed institutions, which include CUSOs formed by federally-chartered institutions. 

“While the public statements from Regulated Banking Institutions and Regulated Non-Depository Financial Institutions in support of DEI (Diversity, Equity and Inclusion) initiatives are significant and necessary, it is time to act on those words and make good on good intentions to begin to achieve real change. This industry letter is aimed at supporting existing DEI efforts while outlining DFS’s expectation that New York-regulated financial institutions make the diversity of their leadership a business priority and a fundamental component of their corporate governance.”

Although the letter does not include specific mandates, the Superintendent points out that under Section 37 of the New York Banking Law, she has the authority to mandate that regulated institutions report to the Department on steps taken to address DEI.

On that note, enjoy your weekend!

Entry filed under: New York State, Regulatory. Tags: , , , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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