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Can I collect financial information from participants in New York? What are the requirements?

To collect financial information from participants in New York, you must comply with applicable laws and regulations. The requirements depend on the type of financial information you are seeking to collect and the nature of your business. Here are some general guidelines:

Collection of Financial Information

If you are a financial institution, you may collect financial information from participants in New York as part of your normal business operations. However, you must comply with the Gramm-Leach-Bliley Act (GLBA) and its implementing regulations, including the New York State Department of Financial Services (NYDFS) Cybersecurity Regulation [3.1]. Under the GLBA, financial institutions must provide initial and annual privacy notices to customers, and allow customers to opt-out of certain information sharing practices [3.1]. The NYDFS Cybersecurity Regulation requires financial institutions to implement and maintain a cybersecurity program to protect nonpublic information [3.1].

If you are not a financial institution, you may still collect financial information from participants in New York, but you must comply with other applicable laws and regulations. For example, if you are a debt collector, you must comply with the Fair Debt Collection Practices Act (FDCPA) and the New York State Department of Financial Services Debt Collection Regulation [2.1]. Under the FDCPA, debt collectors must provide certain disclosures to consumers and may not engage in certain abusive or deceptive practices [2.1]. The New York State Debt Collection Regulation imposes additional requirements on debt collectors, including licensing and bonding requirements [2.1].

Requirements for Submitting Financial Information

If you are a charitable organization, professional fund raiser, fund raising counsel, or investment adviser, there are specific requirements for submitting financial information to the New York City Office of the Attorney General’s Charities Bureau [1.1][2.2][4.1]. Charitable organizations that have one or more affiliates may file a combined annual financial report for itself and its affiliates with prior written authorization by the Attorney General [1.1]. Professional fund raisers, fund raising counsel, and professional solicitors must register with the Attorney General prior to engaging in any fund raising activities in the State of New York and/or solicitation of persons in New York State [4.1]. Investment advisers must submit audited financial statements if they charge certain fees six months or more in advance [2.2].

Conclusion

To summarize, you may collect financial information from participants in New York if you comply with applicable laws and regulations. The requirements depend on the type of financial information you are seeking to collect and the nature of your business. If you are a financial institution, you must comply with the GLBA and the NYDFS Cybersecurity Regulation. If you are a debt collector, you must comply with the FDCPA and the New York State Debt Collection Regulation. If you are a charitable organization, professional fund raiser, fund raising counsel, or investment adviser, there are specific requirements for submitting financial information to the New York City Office of the Attorney General’s Charities Bureau.

Source(s):
Jurisdiction

New York