N.Y. Comp. Codes R. & Regs. Tit. 3 § 7.2 - Disclosure of Confidential Supervisory Information
(a) General Rule. Except as provided in
section 36.10 of the Banking Law, or subdivisions (b), (c) and (d) below, a
regulated entity shall not disclose any confidential supervisory information to
any person without the prior written approval of the Department and subject to
any terms and conditions that are imposed by the Department on any such
disclosure.
(b) Limited Exception
to Prior Written Approval Requirement. Notwithstanding the requirements of
subdivision (a) of this section, without obtaining the prior written approval
of the Department, a regulated entity may disclose confidential supervisory
information, which is lawfully in the possession of such regulated entity, to
legal counsel or an independent auditor that has been retained or engaged by
such regulated entity pursuant to an engagement letter or written agreement,
provided that such legal counsel or an independent auditor has in writing:
(1) acknowledged that such disclosed
information is confidential supervisory information under section 36.10 of the
Banking Law; and
(2) agreed to
abide by, the prohibition on the dissemination of confidential supervisory
information contained in subdivision (a) of this section.
(c) Exception for Client Acceptance of New or
Continuing Engagement of Independent Auditors. A regulated entity may disclose
confidential supervisory information, which is lawfully in the possession of
such regulated entity, to independent auditors as part of the independent
auditor's acceptance of a new client engagement or the continuation of an
existing annual audit engagement; provided that the regulated entity receives a
written acknowledgement from the independent auditor that such disclosed
information is confidential supervisory information under section 36.10 of the
Banking Law, and the independent auditor agrees in writing to abide by the
prohibition on the dissemination of confidential supervisory information
contained in subdivision (a) of this section.
(d) Exception for Affiliates. When necessary
and appropriate for business purposes, a regulated entity may disclose
confidential supervisory information, which is lawfully in the possession of
such regulated entity, to its affiliates and the directors, officers and
employees thereof on the condition that such persons maintain the
confidentiality of such information.
(e) Duty When Served. Any regulated entity,
any affiliate, legal counsel, independent auditor or any other person served
with a request, subpoena, order, motion to compel, or other judicial or
administrative process to provide confidential supervisory information shall:
(1) immediately notify and inform the Office
of the General Counsel of the Department of all relevant facts, including the
specific documents and information requested, in a timely manner so that the
Department will be able to intervene in the judicial, administrative, or other
action if appropriate;
(2) inform
the requester of the substance of this Part and the obligation to maintain the
confidentiality of the confidential supervisory information described in
subdivision (a) of section 7.2 hereof; and
(3) at the appropriate time, inform the
court, the tribunal, or other issuing authority, of the substance of section
36.10 of the Banking Law and this Part.
(f) Actions of the Department Following
Notice of Service. Following receipt of notice pursuant to subdivision (e) of
this Part, the Department may direct the requester to intervene in the
judicial, administrative, or other action, take all reasonable efforts to have
the compulsory process withdrawn, register other appropriate objections, or
take other action.
(g) Disclosure
to Government Agencies. Upon written request to and approval by both the Senior
Deputy Superintendent for Banking (or his or her delegate) and the General
Counsel (or his or her delegate), when not prohibited by law, confidential
supervisory information relating to a regulated entity may be made available to
a state or federal supervisory agency having direct supervisory authority over
such regulated entity.
(h)
Intention of the Department Not to Waive Rights. The possession of confidential
supervisory information by any regulated entity, any affiliate, legal counsel,
independent auditor or any other person does not constitute a waiver by the
Department of its right to control, or impose limitations on, the subsequent
use and dissemination of such confidential supervisory information.
Notes
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